‘Entirely unjust’ Outrage as thousands of Britons miss out on state pension increase

Retirement expert advises people to learn about state pensions

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Pensioners should have been delighted with an almost eight percent increase in their state pension payments if the triple lock had been retained. Now with the double lock instated, state pension is due a miserly 3.1 percent increase but roughly four percent of pensioners won’t even receive that.

Over one million British pensioners choose to retire abroad, and some without knowing that this could be the downfall of their state pension income. 

Roughly 500,000 of these pensioners, four percent of the total state pension recipients, are estimated to have seen their pensions ‘frozen’ through the Government’s policy on the state pension overseas.

Through this policy, some expats who receive their state pension abroad will not see any increases due to where they live.

These expats meet all the criteria and have contributed just as much, and in some cases more, than their counterparts living in the UK. 

Many of these expats choose to retire abroad to be closer to family who have left the UK and in doing so they are severely handicapped financially by the UK Government.

Post-Brexit negotiations, only expats living in the following countries can receive the annual state pension uprating:

  • Gibraltar
  • Switzerland
  • EEA
  • Countries with social security agreements with the UK except for Canada or new Zealand

Many have said the system under which the frozen pensions operates is increasingly anachronistic, with expats in Canada being much worse off than their counterparts in America. 

These expats that are ignored by the uprating still face all of the same trials and tribulations of retirement such as rising inflation and cost of living.

However, they are offered no security like the double or triple lock.

Nigel Nelson, previous chair of the International Consortium of British Pensioners, commented: “Many of them have to choose whether they should turn on the heating or whether they can afford to eat.

“I am sure you will have seen in the press how much pensioners in the UK are struggling to make ends meet – imagine how UK pensioners living here in Canada are suffering given that their UK state pension is NEVER increased, despite the fact that they have the same number of National Insurance contribution years.” 

The ICBP has opened a petition to have the frozen pension policy discussed in the House of Commons in the hopes of invoking some much needed change. 

The petition notes how it feels from an expat point of view: “This is entirely unjust! Why should we not get equal rights? Pensioners living abroad are less of a strain on the National Health.

“Not receiving Winter Fuel Payment, not receiving discounted travel on public transport. Yet we are still penalised! It is only fair that the Government treats all its citizens on an equal basis!”

This dilemma has been faced by expats for years, with many living in poverty through no fault of their own. 

The End Frozen Pensions campaign conducted a survey near the end of last year which revealed that some expats were living on just £22 per week.

Meanwhile their counterparts in other countries are receiving £179.60 per week under the new state pension and will be guaranteed an increase in April.  

Due to rising costs, some of these expats have been forced to return to the UK in order to utilise the benefits and state pension uprating afforded to pensioners. 

A DWP spokesperson commented: “We understand that people move abroad for many reasons and that this can impact on their finances. There is information on GOV.UK about what the effect of going abroad will be on entitlement to the UK State Pension.

 “The Government’s policy on the up-rating of the UK State Pension for people living overseas is a longstanding one of more than 70 years and we continue to uprate state pensions overseas where there is a legal requirement to do so.”

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