A new online petition in the UK is calling for fair treatment of pensioners living abroad by increasing their “frozen” state pensions. Currently, around 453,000 British retirees who live outside countries with reciprocal social security agreements are not receiving annual pension increases. This petition urges the UK government to match pension increases for these pensioners with inflation rates, providing a 4.1% boost starting April 2025.
Understanding the “Frozen” Pension Issue
Many British pensioners who retire overseas do not automatically receive yearly increases in their state pensions. The increases depend on whether the UK has a reciprocal social security agreement with the country where they now live. Pensioners living in countries like the USA and the EU receive regular increases, but those in Canada, Australia, New Zealand, India, Pakistan, South Africa, Nigeria, and several other countries do not.
As a result, these pensioners see their payments “frozen” at the amount they first received when moving abroad. Over the years, this situation severely affects their purchasing power, especially with inflation and rising living costs.
What the Petition Aims to Achieve
Steven Scanlan created this online petition, highlighting the unfairness towards these pensioners. The petition states clearly that all UK pensioners deserve fair treatment, no matter where they choose to retire. It asks the government to raise pensions for overseas pensioners by 4.1%, matching the Consumer Price Index (CPI) inflation rate recorded in September.
According to Scanlan, pensioners have paid their fair share through National Insurance contributions during their working life. Therefore, they deserve the same rights and increases, regardless of their current country of residence.
Response and Government’s Current Position
The UK government’s policy on pension increases follows the “Triple Lock,” which ensures pensions increase each year by the highest among wage growth, inflation, or 2.5%. Sir Stephen Timms, a DWP Minister, confirmed that around 12.5 million pensioners would receive the scheduled 4.1% increase starting April 2025. Yet, about 453,000 pensioners abroad will not benefit due to the absence of reciprocal agreements between the UK and their resident countries.
Despite ongoing campaigns such as the “End Frozen Pensions” by the International Consortium of British Pensioners (ICBP), former pensions minister Emma Reynolds stated recently that the UK is not planning new reciprocal agreements soon. As it stands, this issue remains unresolved.
Impact of the Proposed Pension Increase
If the petition succeeds and the government chooses to uprate these pensions by 4.1%, pensioners will see significant financial relief:
- New State Pension recipients would see a weekly rise from £221.20 to £230.30, increasing their annual payments by about £473.60.
- Basic State Pension recipients would see weekly payments rise from £169.50 to £176.45, increasing annual payments by about £361.40.
Research by the Canadian Alliance of British Pensioners suggests the total cost to bring these “frozen” pensions up-to-date would be around £50 million—a mere 1.3% of the UK government’s yearly expenditure on pensions.
The call to end the frozen state pensions policy is gaining momentum, driven by fairness and equity concerns. With growing public support, the UK government faces increased pressure to address this long-standing issue. Ensuring fair pension increases for all pensioners, regardless of their location, could significantly improve the financial well-being of thousands of retired British citizens overseas. To support this initiative, people can sign the online petition to prompt government response and parliamentary debate.
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FAQ’s
What are frozen pensions?
Frozen pensions are UK state pensions that don’t receive yearly increases. This occurs for pensioners living abroad in countries that lack reciprocal social security agreements with the UK.
Which countries have UK pensions frozen?
UK pensioners living in countries like Canada, Australia, New Zealand, India, Pakistan, Nigeria, and South Africa experience frozen pensions as these nations lack reciprocal social security agreements with the UK.
How much increase is proposed by the petition?
The petition proposes a 4.1% increase, matching the Consumer Price Index (CPI) inflation rate of September, to be applied from April 2025.
What is the Triple Lock pension policy?
The Triple Lock ensures UK state pensions rise annually by the highest of three factors: wage growth, inflation, or 2.5%.
How many signatures does the petition need to prompt a government response?
At 10,000 signatures, the UK government must provide a written response. At 100,000 signatures, the petition could be debated in Parliament.