Nearly half a million British retirees living overseas remain affected by the UK\u2019s \u201cfrozen pensions\u201d policy, which prevents annual state pension increases for people residing in certain countries. The Department for Work and Pensions (DWP) has now reiterated that there are no plans to change the approach in the near future.<\/p>\n\n\n\n
The issue affects pensioners who moved to countries where the UK does not have a reciprocal agreement<\/strong> covering state pension uprating. As a result, many retirees continue receiving the same pension amount they were entitled to when they left the UK, even as inflation has reduced the value of those payments over time.<\/p>\n\n\n\n According to reports, Pensions Minister Torsten Bell<\/strong> responded to a parliamentary question about the impact of frozen state pensions on UK pensioners living abroad. In his response, Bell emphasized that the policy has existed for many years and continues to reflect the position of successive governments. \u201cThe UK’s policy on the up-rating of the UK State Pension for recipients living overseas is a longstanding one<\/em>,\u201d Bell said.<\/p>\n\n\n\n He also noted that the UK State Pension is payable worldwide regardless of nationality. However, annual increases are applied only where the UK has a legal obligation<\/strong> to do so through reciprocal arrangements or other agreements.<\/p>\n\n\n\n According to Bell, governments have consistently supported this approach while prioritizing pension-related spending for people living within the United Kingdom. He stated: \u201cThis approach has been supported by successive governments, over many years with priority given to those living in the UK when drawing up expenditure plans for additional pensioner benefits<\/em>.\u201d<\/p>\n\n\n\n Countries commonly cited as being affected by the policy include Canada, New Zealand, Thailand, and South Africa. Pensioners who relocate to these nations continue receiving their pension, but they do not benefit from the yearly increases linked to the state pension uprating system.<\/p>\n\n\n\nGovernment Maintains Existing Overseas Pension Policy<\/strong><\/h2>\n\n\n\n