UNIONS welcomed an apparent government U-turn over compensating Waspi women today — but said it must act now.

Work and Pensions Secretary Pat McFadden on Tuesday said that his department would review the policy not to compensate women born in the 1950s who lost out due to an increase in the pension age.

The minister told the Commons that they could get compensation for the way the changes were communicated last year.

Court proceedings prompted the rediscovery of a 2007 Department for Work and Pensions evaluation which led to automatic pension forecast letters not being sent out.

He said that “in the interests of fairness and transparency” the government would now reconsider its decision, but offered campaigners no guarantees that the review would lead to compensation being awarded.

Unison general secretary Christina McAnea said: “This offers a glimmer of hope to a generation of women, many of whom have endured financial hardship for years.

“The government must now follow through on its promise to act.

“It comes too late for those who’ve died after devoting their working lives to public service.

“So many women had the rug pulled from under them when the government moved the goal posts with little notice, forcing them to delay their retirement. For some that’s meant unacceptable poverty.

“What started out as an administrative error was compounded by successive governments reneging on their promises. It’s time for ministers to put things right.”

GMB general secretary Gary Smith called on the government to “resolve the injustice.”

He said: “Clearly the economy has been left in tatters by the Conservative government, but those women born in the 1950s should not have to carry the can.

“We asked the government to reconsider its decision earlier this year. Now they are doing so and the Waspi women must now get justice.”

The decision to refuse compensation was made despite a recommendation by the Parliamentary and Health Service Ombudsman the women should be paid up to £2,950 each.

Then-work and pensions secretary Liz Kendall said in December last year that the potential £10.5 billion cost could not be justified.

Waspi women have since sought a judicial review to challenge the government’s policy.