Hundreds of thousands of British pensioners living abroad are being left out of the UK’s annual State Pension increase. Around 453,000 pensioners living in countries without a reciprocal agreement with the UK Government won’t see the 4.1% pension boost this year, despite having made the required National Insurance contributions.
This issue is tied to the UK’s long-standing “frozen pensions” policy, which limits pension payments to the amount originally claimed by pensioners.
For those living in Commonwealth nations like Canada and Australia, this means their pensions remain unchanged, regardless of any cost-of-living increases or the annual pension uprating through the Triple Lock mechanism.
Pensions Remain Static for Expats in Canada and Australia
British pensioners living in countries such as Canada, Australia, and New Zealand are among those affected by the freeze. According to the End Frozen Pensions campaign, these individuals receive no annual increase in their State Pension, even though they contributed fully during their working lives in the UK.
In contrast, pensioners residing in the USA, EU, and certain other nations with reciprocal agreements benefit from the same uprating system as residents in the UK.
The financial consequences can be severe. Some pensioners receive less than £65 per week, while others are surviving on as little as £20.
One prominent case is that of Anne Puckridge, a 100-year-old World War II veteran now living in Canada, who receives just £72.50 per week — less than half the current full Basic State Pension rate of £176.45. She has been campaigning for reform since her pension was frozen 24 years ago.
According to the Canadian Alliance of British Pensioners, aligning all pensions with UK rates would cost around £50 million — a figure that represents only a small fraction of the UK’s total welfare spending.
Hopes Rise as Mark Carney Becomes Canadian Prime Minister
The recent election of Mark Carney as Prime Minister of Canada has prompted renewed optimism among campaigners. As a former Governor of the Bank of England, Carney is expected to qualify for a UK State Pension. However, like more than 100,000 other UK pensioners in Canada, his pension could also be frozen.
Campaigners view Carney’s unique position — as someone with strong ties to both countries — as a potential diplomatic bridge. John Duguid, Chair of End Frozen Pensions International, has called for the issue to be prioritised in diplomatic discussions, describing it as “an essential lifeline to many affected pensioners who are struggling to make ends meet.”
While there is no formal commitment from the UK Government to review the policy, advocates hope that Carney’s influence and public attention may finally bring long-awaited change.
“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.” Melville-Grey remarked.
