Millions of pensioners are set to see their state pensions rise by £460 a year from April – but over 450,000 won’t.
The state pension is subject to an annual rise each year under the triple lock promise. This ensures it increases by either inflation (based on the previous September’s figure), wage growth (average increase between May and July), or 2.5% – whichever is the highest. It was confirmed by the Chancellor last year that state pension payments will be boosted by wage growth – which sat at 4.1% – from next month. However, nearly half a million pensioners who live overseas will not see their payments rise due to the current “frozen pension” rules.
Under the current legislation, the UK state pension is only uprated for someone if they live in the UK, the European Economic Area (EEA), Gibraltar, Switzerland, and countries with a social security agreement with the UK. However, popular retirement spots outside of Europe, including Canada, New Zealand, and other Common Wealth nations, do not have this agreement. Pensioners who have moved to these countries have seen their payments remain at the same rate they were when they left as they are not entitled to an uplift – even though they are British nationals.
With each state pension hike over the last few years, the Department for Work and Pensions (DWP) has confirmed that pensioners living abroad will not have payments increased. This again seems to be the case this year.
The End Frozen Pensions campaign advocates on behalf of around 453,000 British overseas state pensioners impacted by the Government’s so-called frozen pensions policy. However, campaigners representing the 100,000 Brits living in Canada are hoping that the election of former Bank of England Governor Mark Carney as the new Prime Minister will aid their fight against the “international scandal”.
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. However, we know for sure that many thousands of the affected 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, believes Carney’s election presents a diplomatic opportunity. He 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.”
He added: “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.”
From April 6, 2025, UK based pensioners will see their state pensions rise by 4.1% under the triple lock. The basic state pension will increase from £169.50 to £176.45 per week, while the full new state pension will rise from £221.20 to £230.25 per week. Over the course of a year, the basic state pension will be rising from £8,844 to £9,198 – so a lift of £353 – and the new state pension is going from £11,502 to £11,975 – so a rise of £461 a year.
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