Nearly 453,000 British state pensioners living overseas are facing financial hardship due to the UK’s controversial “frozen pensions” policy. This policy denies pensioners residing in certain countries, such as Canada, annual inflation-linked increases to their state pensions.
The End Frozen Pensions campaign has been advocating on behalf of these pensioners for years, calling for a policy change that would adjust state pensions in line with inflation, regardless of where individuals choose to live.
The Impact of Frozen Pensions on Expat Pensioners
According to Edwina Melville-Grey, Chair of End Frozen Pensions Canada, many of the affected pensioners rely on their UK pensions as a vital source of income.
These pensioners, often living in countries with high living costs, face a situation where their pensions remain frozen at the level they were when first claimed—without any increases to reflect inflation.
This policy affects individuals like Anne Puckridge, a 100-year-old campaigner, whose situation illustrates the severe impact of the frozen pension policy. Despite having worked and contributed to the UK pension system, she and others like her are left with an income that fails to keep pace with rising costs of living.
John Duguid, Chair of End Frozen Pensions International, argues that the cost to unfreeze these pensions is minimal, and it would be a lifeline to many affected pensioners, especially as they face increasing financial pressures in their retirement years.
The Opportunity for Change Under Mark Carney’s Leadership
Campaigners are particularly hopeful that Mark Carney’s election as Prime Minister of Canada may present an opportunity to address the issue. Carney, a former Governor of the Bank of England, is familiar with the UK’s pension system, and his leadership could offer a platform for dialogue between the UK and Canada on this long-standing issue.
The End Frozen Pensions campaign sees this as a prime moment to push for changes, especially with the increased political focus on trade and international relations.
With the UK government planning to cut billions from the budget, including reductions in some social benefits, campaigners are calling on Carney to raise the issue of frozen pensions in diplomatic talks, hoping that it will become a priority for both governments.
There are no reciprocal pension an SS agreements with the countries where ex-patriot pensioners reside so the annual increase cannot be paid. This is something you need to take into account if you plan to retire abroad. https://www.gov.uk/government/publications/state-pensions-annual-increases-if-you-live-abroad/countries-where-we-pay-an-annual-increase-in-the-state-pension