453,000 pensioners that live outside the UK will not receive the annual State Pension uprating.
Half a million state pensioners are noticing a £470 shortfall in bank accounts. Under Department for Work and Pensions ( DWP ) rules, 453,000 pensioners that live outside the UK will not receive the annual State Pension uprating.
Over 100,000 expats in Canada are among those that missed out. Although the UK state pension is payable overseas, it is not “uprated” annually unless there is a legal requirement to do so – for example, where there is a relevant reciprocal social security agreement in place.
Edwina Melville-Grey, Chair of End Frozen Pensions Canada, said: “We don’t imagine for a moment that Mr Carney will be reliant on whatever UK State Pension he might be entitled to.”
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Their state pensions do not increase each year, but stay at the level reached on the date the individual moved away if they had already retired, or became entitled to the payment if they were already living overseas.
Melville-Grey said: “However, we know for sure that many thousands of the UK State Pensioners living in affected countries, including those in Canada, see their UK State Pension as a vital lifeline helping them through arduous times.
“We know that he has many immense challenges on his desk right now and wish him well in meeting those. But we hope he will be able, when the time is right, to meet with our lead campaigner on this issue, 100-year-old Anne Puckridge.
“Her situation embodies the injustice of this scandal.” John Duguid, Chair of End Frozen Pensions International, said: “Simply more needs to be done to address the ‘frozen’ pensions policy in diplomatic settings, and the election of Mark Carney as Canada’s Prime Minister paints the perfect opportunity to do so.
“The current political appetite surrounding trade and negotiations further reinforces the point that the cost to unfreeze pensions is extremely modest and will be an essential lifeline to many affected pensioners who are struggling to make ends meet.”
Puckridge adds: “I can’t remember when I bought anything new, and I have to limit even essential purchases to thrift and similar stores. Social activity and entertainment are mainly only memories, and festive seasons such as the approaching Christmas or birthdays are embarrassing rather than exciting events.”
Speaking previously, the DWP said: “We understand people move abroad for many reasons, and we provide clear information on how this can impact their finances in retirement, with the policy on the uprating of the UK state pension for recipients living overseas a longstanding one.”
