Nearly 500,000 British pensioners living abroad won’t receive the 4.1% state pension increase next month. While the triple lock ensures pensioners in the UK keep up with inflation, many retirees overseas are stuck with frozen pensions, meaning their payments remain at the rate they were when they left the UK.
Some pensioners have been left surviving on as little as £20 a week, a situation campaigners call a major injustice. But with new governments coming into power, change could finally be on the horizon.
Frozen Pensions Issue
The UK state pension is not automatically increased for those living abroad. If a retiree moves to a country without a reciprocal agreement with the UK, their pension stays at the same level as when they first started claiming it.
Countries
British pensioners living in these countries do not get annual state pension increases:
- Canada
- Australia
- New Zealand
- South Africa
- Thailand
Meanwhile, those who retire to places like the USA, EU countries, and the Philippines still receive annual increases. This has led to a deep divide, where two pensioners who have paid the same National Insurance contributions receive vastly different amounts based on where they live.
A Hope for Change?
There is new hope for pensioners in Canada, where over 100,000 UK retirees are affected by the frozen pensions policy. With Mark Carney elected as the new Prime Minister of Canada, campaigners believe this outdated rule could finally change.
The End Frozen Pensions Campaign pointed out that Carney, having worked in the UK, will one day be entitled to a UK state pension himself. This means he could be personally affected if he chooses to stay in Canada after retirement.
Campaigners Fight for Justice
Edwina Melville-Grey, Chair of End Frozen Pensions Canada, explained:
“We don’t imagine for a moment that Mr Carney will be reliant on whatever UK state pension he might be entitled to. However, many thousands of UK pensioners living in affected countries see their pension as a vital lifeline helping them through arduous times.”
One of the leading voices in the campaign is 100-year-old Anne Puckridge, a World War II veteran. Anne moved to Canada in 2001 to be closer to her daughter, but her pension has been frozen at £72.50 a week ever since.
Had she stayed in the UK, she would now receive £176.45 a week—more than double what she currently gets.
Government’s Response
Anne Puckridge travelled to the UK in December 2024 to lobby the government, requesting a meeting with Prime Minister Sir Keir Starmer. However, he declined the invitation.
Campaigners argue that the UK’s refusal to update pensions for all retirees is unfair, especially since those living in certain countries still receive full increases.
Pensioners
According to reports, around 453,000 British retirees worldwide have frozen pensions. Many rely on these payments as their primary source of income, making the lack of annual increases a significant financial burden.
What Happens Next?
With growing political pressure and a new Canadian government, the issue of frozen pensions might finally get the attention it deserves. While no official changes have been announced yet, campaigners remain hopeful that agreements can be reached, ensuring that all UK pensioners receive fair treatment, no matter where they choose to retire.
FAQs
Which countries have frozen UK pensions?
Countries like Canada, Australia, New Zealand, Thailand, and South Africa have frozen UK pensions.
Why are UK pensions frozen abroad?
Pensions are frozen in countries without a reciprocal agreement with the UK.
Will frozen pensions be increased soon?
There is hope for change, especially in Canada, but no official update yet.
How many pensioners are affected by frozen pensions?
Around 453,000 British retirees worldwide have frozen pensions.
What is the triple lock policy?
The triple lock ensures UK pensions increase based on inflation, wages, or 2.5%.
