500,000 people set to miss out on 10.1% state pension boost

Frozen pensions are 'somewhat misleading' says Edwards

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The return of the triple lock this year has been celebrated by millions of pensioners, following its temporary suspension in 2022. The policy was deemed too expensive, due to warped earnings data as a result of the pandemic, and ditched for a year.

However, its return this year means the state pension will increase in line with September’s inflation figure of 10.1 percent.

According to Chancellor Jeremy Hunt, this represents the biggest ever increase to the state pension.

But despite this bumper boost, not everyone will be able to benefit from the triple lock.

State pension rises are only guaranteed in certain areas, with others set to miss out.

The rise can be secured in the following places:

  • The UK
  • European Economic Area (EEA)
  • Gibraltar
  • Switzerland
  • Countries with a social security agreement with the UK – but not Canada or New Zealand.

Those who are not in those specific areas will not benefit from the increase.

These individuals are commonly referred to as “frozen pensioners”, as they will see their sum halted at the level it was when they left the UK or another eligible nation.

The End Frozen Pensions Campaign states at least “500,000 people” are impacted by this long-standing policy.

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As a result, these pensioners see their sum fall in value each year as inflation grows.

The campaign group argues many of these individuals face poverty and hardship due to the policy.

It has been described as an “arbitrary postcode lottery”, as some expats receive a boost, while others miss out.

The All-Party Parliamentary Group (APPG) on Frozen British Pensions also sheds light on the matter.

Their website states more than 95 percent of the frozen pensioners live in Commonwealth countries.

Most live in Australia, Canada, South Africa, and New Zealand, but also in India, Pakistan, all African countries and many Caribbean islands.

If a person does return to live in the UK, then their pension will return to the current rate.

Those who are thinking about moving abroad can also receive guidance on the state pension or other matters.

What is happening where you live? Find out by adding your postcode or visit InYourArea

The International Pension Centre will provide the latest information and guidance on the matter.

A DWP spokesperson previously told Express.co.uk: “The Government’s policy on the uprating of the UK state pension for recipients living overseas is a longstanding one of more than 70 years. 

“We continue to uprate state pensions overseas where there is a legal requirement to do so.”

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