Campaigners are calling for urgent reforms on behalf of approximately 453,000 pensioner expats who receive significantly lower UK state pensions than those living in the UK.
Half a million older people won’t get a £11,973 state pension payment this year. Campaigners are calling for urgent Department for Work and Pensions (DWP) reforms on behalf of approximately 453,000 pensioner expats who receive significantly lower UK state pensions than those living in the UK.
The issue arises because, in certain countries, the UK state pension remains frozen, meaning it does not rise in line with inflation or other increases, leaving those living abroad at a significant disadvantage.
A compelling example of this issue is the case of Anne Puckridge, a 100-year-old Second World War veteran, who has been receiving the same frozen pension of £72.50 per week since leaving the UK at the age of 76.
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This amount is less than half of the £176.45 per week she would be entitled to if she were living in the UK as of April 2024. Over the course of a year, this results in a shortfall of £5,405, depriving her of the financial support she would have otherwise received.
In response to this ongoing issue, the International Consortium of British Pensioners (ICBP) has launched its End Frozen Pensions campaign. The initiative aims to bring attention to the injustice faced by around 453,000 expats whose pensions do not rise annually in line with the UK’s Triple Lock system, which guarantees that pensions increase each year based on either inflation, wage growth, or a minimum of 2.5%, whichever is highest.
This policy flaw disproportionately affects expats living in countries with frozen pensions, where they will not benefit from the annual uplift seen by those in the UK. For example, in April 2024, the New Full State Pension saw an increase of 4.1%, rising from £11,502 to £11,973. Going forward, the government has committed to a 2.5% annual increase until 2030.
However, pensioners in countries with frozen pensions will see no such increase, leaving them at a severe disadvantage compared to their peers in the UK. The issue mainly affects pensioners living in Commonwealth countries, including Canada and Australia, where the UK government is not bound by bilateral agreements to increase pension payments.
As a result, those who moved to these countries after their retirement are left with stagnant pension payments that do not adjust for inflation or the rising cost of living.
In contrast, expats living in the United States or European Union countries typically receive the same annual increases to their pensions as those in the UK, ensuring that they are not disadvantaged in the same way.
In a hopeful turn, some campaigners are looking towards the election of Canadian Prime Minister Mark Carney as a potential opportunity for change. Carney, who worked in the UK for several years and made contributions to the UK pension system—most notably during his time as Governor of the Bank of England—could be an influential figure in addressing the issue. Campaigners are optimistic that his background will make him more attuned to the struggles faced by expats with frozen pensions.
