From April 6, 2025, millions of UK pensioners will see their state pension increase under the triple lock system. However, around 450,000 retirees living abroad will not benefit from this rise due to existing government rules.
While many pensioners welcome the upcoming uplift, others are left frustrated by a long-standing policy that remains unchanged. According to Hull Daily Mail, the issue continues to spark debate, with campaigners calling for urgent reform. As discussions unfold, affected retirees face another year without an increase.
How much is the state pension increasing?
The triple lock system guarantees that the UK state pension increases each year based on the highest of three factors : inflation, measured by the previous September’s figure; wage growth, calculated as the average rise between May and July; or a minimum increase of 2.5%.
For 2025, the UK government has confirmed that the increase will be based on wage growth, which was recorded at 4.1%. As a result, the basic state pension will rise from £169.50 to £176.45 per week, reflecting an increase of £6.95 per week, while the full new state pension will increase from £221.20 to £230.25 per week, adding £9.05 per week.
Over a year, this adjustment translates into an annual increase from £8,844 to £9,198 for those on the basic state pension, equating to an additional £353 per year, while pensioners receiving the full new state pension will see their payments rise from £11,502 to £11,975 per year, an increase of £461 annually.
Who will not receive the pension increase?
Under existing UK pension rules, retirees living abroad do not automatically receive annual state pension increases unless they reside in the United Kingdom, the European Economic Area (EEA), Gibraltar, Switzerland, or in countries that have a social security agreement with the UK.
British pensioners living in countries without such agreements, including popular retirement destinations like Canada, Australia, and New Zealand, do not receive these increases and have their pensions frozen at the rate they were when they first left the UK.
This means that a pensioner who moved to Canada 20 years ago would still receive the same amount as they did at the time of emigration, with no adjustments for rising living costs.
Ongoing campaign against frozen pensions
The End Frozen Pensions campaign, which advocates for the approximately 453,000 British state pensioners affected by this policy, has been actively calling for a policy change. Campaigners argue that the frozen pension rule disproportionately affects elderly pensioners who rely on their UK pension as a financial lifeline.
Optimism over diplomatic efforts with Canada
Campaigners see a new opportunity to push for policy change following the election of Mark Carney as Canada’s new Prime Minister. As a former Governor of the Bank of England, Carney has close ties to the UK financial system, which campaigners believe could be leveraged in diplomatic negotiations over pension policy.
Edwina Melville-Grey, chair of End Frozen Pensions Canada, emphasised the significance of the issue for pensioners:
“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 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.”
She also expressed hope that Carney would engage with campaigners on the issue, specifically 100-year-old Anne Puckridge, a British pensioner whose situation highlights the impact of frozen pensions:
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, also sees Carney’s election as a strategic diplomatic opportunity. He stated:
“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 further argued that there is growing political interest in trade and financial agreements, which could help bring attention to the issue:
“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.”
