The Department for Work and Pensions (DWP) has confirmed the continuation of a policy that leaves around 450,000 state pensioners with frozen pensions while living overseas. This update comes as pressure mounts on the government to negotiate reciprocal agreements with other nations.
Minister Defends Longstanding Policy
Labour Party Pensions Minister Torsten Bell addressed the issue, stating: "The UK's policy on the up-rating of the UK State Pension for recipients living overseas is a longstanding one. The UK State Pension is payable worldwide without regard to nationality and is uprated abroad where we have a legal requirement to do so."
Bell added: "This approach has been supported by successive governments over many years, with priority given to those living in the UK when drawing up expenditure plans for additional pensioner benefits."
Campaign Against Injustice
The End Frozen Pensions Campaign aims to end what it describes as an injustice affecting over 400,000 British pensioners who are excluded from annual payment upratings because they reside in the "wrong" country. As a result, their pensions are "frozen" at the level they were when they left the UK or first started receiving their pension, causing their real value to diminish year after year.
One affected individual is Anne, aged 99, who served in the Second World War and worked in the UK until the age of 76, paying her National Insurance contributions in full. However, Anne's pension was frozen at £72.50 per week when she moved to Canada to be closer to her daughter and grandchildren. Her pension does not increase with inflation, so its real value declines annually. Had she remained in the UK, she would be receiving £156.20 per week.
The End Frozen Pensions Campaign stated: "Astonishingly there are around 450,000 British pensioners in similar positions, most of whom live in Commonwealth countries, while other countries like America and the Philippines are unaffected."
