A controversial government policy is preventing hundreds of thousands of British state pensioners living overseas from receiving the annual Triple Lock increase, a rule that Canadian politicians are labelling 'morally indefensible'.
The 'Frozen Pensions' Policy Explained
The Department for Work and Pensions (DWP) policy dictates that pensioners who have retired to certain countries, including Canada and Australia, do not receive the yearly state pension uprating. This means their payments are effectively 'frozen' at the rate they were when they first moved abroad or when they first claimed their pension, causing them to miss out on significant income over the course of their retirement.
While pensioners in the EU, the USA, and a select group of other nations receive the annual increases, those in many Commonwealth nations do not. This has created a stark two-tier system for British expatriates.
Growing Anger in the Canadian Parliament
The issue has become a significant point of diplomatic friction, with Canadian MPs from across the political spectrum voicing their strong discontent. During a recent trade debate, multiple parliamentarians condemned the UK's stance.
Gord Johns of the Democratic Party stated that affected seniors are 'losing tens of thousands of dollars' over their retirement, pushing many into poverty and costing the Canadian economy over $1 billion annually. He emphasised that this group includes British veterans, nurses, and others who have served their country.
James Maloney, from the ruling Liberal Party, confirmed he and his colleagues have 'raised the issue with British politicians at every opportunity' and have written letters directly to the UK Prime Minister.
Diplomatic and Financial Repercussions
The policy is now being seen as a barrier to stronger UK-Canada relations. Adam Chambers of the Conservative Party of Canada warned that the current Canadian government has let opportunities pass to negotiate on behalf of these UK pensioners, potentially losing crucial negotiating leverage.
Edwina Melville-Gray, Chair of End Frozen Pensions Canada, stated that the debate sends an 'unmistakable message'. She argued that the policy is not only harming pensioners but is also damaging the UK's reputation and its ability to build strong diplomatic and trading relationships with key allies like Canada.
She concluded that Canadian MPs are growing increasingly angry at the unfairness and the subsequent cost to Canadian taxpayers, who must provide greater support to affected seniors. The consensus among critics is that the policy is both politically unsustainable and morally wrong.
