In April 2025, UK State Pension recipients are set to receive a 4.1% increase in their payments, marking a significant rise for those in the UK.
However, around 450,000 pensioners living abroad will miss out on this increase, as their pensions will remain frozen at the rate they first claimed them. This issue predominantly affects pensioners residing in countries without reciprocal agreements with the UK Government, especially in Commonwealth nations.
According to a report from Devon Live, these expatriates, despite having made the required National Insurance contributions, will not benefit from the annual uprating of the State Pension.
The UK State Pension Uprating
The full New State Pension will rise to £921 for every four-week period in the 2025/26 financial year, while the Basic State Pension will increase to £705.80.
This increase is part of the UK’s Triple Lock system, which guarantees that pensions rise annually by the highest of inflation, average earnings, or 2.5%. However, for many pensioners living overseas, these adjustments do not apply.
Approximately 453,000 pensioners living in Commonwealth countries such as Canada and Australia will see their pensions frozen, despite having contributed to National Insurance in the UK. This means that, unlike pensioners residing in the US or EU, they will not receive the annual uprating.
Campaign for Change
A growing campaign, led by groups like the End Frozen Pensions movement, is calling for policy reform. Campaigners argue that the policy unfairly impacts retirees who rely on their UK State Pension for financial stability. Many of those affected are in dire financial circumstances, with some receiving as little as £20 per week.
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 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.
Political Context and Potential for Reform
Recent political changes, such as the election of Mark Carney as Prime Minister of Canada, have sparked optimism among campaigners. They hope that his leadership could help address this issue, as the cost of unfreezing pensions is relatively modest and would provide significant relief to affected pensioners.
John Duguid, Chair of End Frozen Pensions International, has highlighted the urgent need for policy reform, pointing out that
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 also emphasized the timeliness of addressing this issue amidst current global discussions :
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.
Financial Strain for Pensioners
The financial hardship faced by frozen pensioners is stark. Some have seen their pensions remain at the same rate for decades, leading to severe financial challenges. Anne Puckridge, a 100-year-old Second World War veteran, receives just £72.50 per week, less than half the amount she would have been entitled to if she had stayed in the UK.
More than half of those affected by the frozen pensions policy are receiving less than £65 per week, according to campaigners. In some cases, pensioners receive as little as £20 per week.
Campaigners stress that addressing this issue would have a minimal impact on government spending, with an estimated £50 million required to unfreeze pensions for expatriates. This is just 1.3% of Britain’s total annual government spending.
