Approximately 500,000 British pensioners living abroad will not receive the upcoming 4.1% increase in their State Pensions payments, a policy that has been in place for decades.
Unlike UK-based retirees, whose State Pensions are adjusted annually under the triple lock system, those living in certain countries have their pensions frozen at the rate they were receiving when they moved abroad.
According to DevonLive, campaigners argue that this policy has left some pensioners struggling financially, with reports of individuals living on as little as £20 per week.
The issue primarily affects retirees in countries where the UK has no reciprocal agreement to update pensions, including Canada, Australia, New Zealand, Thailand, and South Africa.
With nearly 453,000 British pensioners worldwide affected, discussions around potential reforms continue as calls for change gain momentum.
A Potential Shift in Policy?
There are indications that this policy might come under renewed scrutiny. The recent election of Mark Carney as Prime Minister of Canada has raised hopes for change, particularly among the 100,000+ British pensioners living in Canada who are affected by frozen pensions.
The End Frozen Pensions Campaign has highlighted that Carney himself, due to his past work in the UK, will eventually be entitled to a UK state pension, meaning he could one day be directly impacted by this policy.
Edwina Melville-Grey, Chair of End Frozen Pensions Canada, commented on the situation:
“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.”
Personal Stories Highlighting the Impact
One of the most prominent figures advocating for policy change is 100-year-old Anne Puckridge, a World War II veteran who moved to Canada in 2001. She continues to receive the same £72.50 per week that she was entitled to at the time of her move—less than half of the current basic UK state pension of £176.45 per week.
In December 2024, Anne travelled to the UK to lobby the government, seeking a meeting with Prime Minister Sir Keir Starmer to discuss the issue. However, her request for a meeting was declined.
Scope of the Frozen State Pensions Policy
According to government figures, around 453,000 British retirees are affected by frozen State Pensions globally. The policy applies to pensioners in countries without a bilateral agreement with the UK for State Pensions uprating.
While pensions continue to increase in countries such as the United States and the European Economic Area, retirees in Canada, Australia, New Zealand, and parts of Asia and Africa see their payments remain at the same rate as when they left the UK.
Campaigners claim that this results in severe financial hardship, particularly for older pensioners who depend on state pensions as their primary source of income. Some pensioners in affected countries are reportedly surviving on as little as £20 per week, significantly below the UK minimum income levels for retirees.
The UK government has maintained that it cannot extend pension increases to all overseas retirees unless reciprocal agreements are in place with host countries. While various campaigns have pushed for change, successive governments have argued that uprating all pensions internationally would represent a significant financial commitment.
The End Frozen Pensions Campaign continues to advocate for reform, urging the government to reconsider the policy, particularly for retirees who contributed to the UK pension system throughout their working lives.
