Thousands of Brits face another year not receiving the annual uprating in their state pension
Almost half a million British pensioners will not receive the 4.1% increase in their state pension next month. While the triple lock guarantees that payments for Brits at home will keep pace with inflation, it does not apply to retirees living in certain countries.
This is referred to as frozen state pensions, which freezes a person’s payments at the rate they were when they left the UK. According to campaigners, as reported by the Daily Record, this has seen some people living on as little as £20 a week.
However, with new governments coming into power, there appears to be a glimmer of hope. The recent election of Mark Carney as the new Prime Minister of Canada could help put an end to the so-called ‘frozen pensions policy’, which reportedly affects over 100,000 British retirees in this country alone.
The reason some pensions are frozen is because the country they have retired in doesn’t have a certain agreements or policies in place with the UK. The End Frozen Pensions Campaign highlighted that Carney’s work in the UK will entitle him to a UK state pension one day, implying he’ll be directly affected by this policy gap which may prompt him to make changes.
Edwina Melville-Grey, Chair of End Frozen Pensions Canada, commented: “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.”
The World War II veteran continues to receive the same £72.50 a week she was given in 2001 when she first relocated to Canada to be nearer to her daughter. This is less than half of the current basic state pension she would be receiving if she had remained in the UK, which stands at £176.45 a week.
In December, Anne journeyed to the UK to meet with the Prime Minister, who declined the invitation. Frozen pensions also affect other popular destinations for UK retirees such as New Zealand, Australia, Thailand and South Africa.
It’s reported globally that approximately 453,000 British retirees are dealing with frozen pensions. The complete list of nations that have current agreements with the UK can be found on the Gov.uk website.
