The Department for Work and Pensions (DWP) is set to deliver a significant state pension uplift this April, but the increase will bypass nearly half a million British retirees living overseas.
The Triple Lock Boost and Who Misses Out
Under the Triple Lock mechanism, the new State Pension will rise to £241.30 per week, up from £230.25 in the 2025/26 tax year. This represents an annual increase of approximately £575 for eligible pensioners. Those on the basic State Pension will see their weekly amount climb from £176.45 to £184.90.
However, 453,000 expatriates residing in countries including Canada and Australia will receive no such increase. Their pensions will remain 'frozen' at the rate they were when they first left the UK or when they first claimed their pension abroad.
Campaigners Condemn 'Out of Sight, Out of Mind' Policy
The End Frozen Pensions campaign group states that a staggering 86% of affected pensioners were never informed their state pension would be frozen if they moved. John Duguid, chair of the campaign, criticised the government's stance.
"The Chancellor found the words, and the money, to help protect pensioners from inflation at home, while offering nothing to the hundreds of thousands of British pensioners overseas whose incomes are being eroded year after year," he said. "Once again, we are left out of sight, out of mind and out of pocket."
Pensioner Fury and the Cost Argument
The announcement has sparked anger among retirees. Many argue that by living abroad, they save the UK taxpayer substantial sums in healthcare and other benefits.
One retiree, Phillip Sale, commented: "If we all upped sticks and returned to the UK, you would not only have to pay to uprate our pensions to the current rate, but pay for Healthcare, uprated pension benefits, housing benefits... By moving... we have saved the tax payer millions."
Another pointed out the contribution principle: "Because they paid into the system throughout their working lives, where they decide to live on retirement should have no bearing on their pension."
John Duguid added a further point of contention, noting that most affected countries are members of the Commonwealth, which he said "adds insult to injury." The issue continues to be a major point of debate, highlighting a significant disparity in how the UK state pension is administered based solely on an individual's country of residence.
