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Liverpool Echo
Liverpool Echo
World
Rebecca Miller & Lottie Gibbons

500,000 pensioners to miss out on 10.1% State Pension increase

British pensioners living abroad may not receive an increase in their state pension.

150 countries around the world don't have an uprating agreement with the UK, meaning 500,000 people living outside the UK are trapped on frozen state pensions.

Pensioners in these countries are currently on a pensions policy that sees their state pension frozen at the level they had when leaving the UK. According to the policy, only the UK, the European Economic Area (EEA), Switzerland, Gibraltar, and nations that have a social security agreement with the UK are eligible for state pension increases, but not Canada or New Zealand.

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Millions of pensioners in the UK will see a 10.1% rise next year, but British citizens who do not live in these countries will not be able to secure a state pension increase, The Express reports.

A group called "frozen state pensioners" demonstrated in front of the Department for Work and Pensions (DWP) headquarters recently, in the heart of London to once again demand support for their cause. The group carried a sizable banner with the slogan "UK Gov Steals My Pension”.

It included images of impacted expats residing in numerous foreign locations, including Commonwealth countries. The demonstrators came from countries affected by the frozen pension scheme, including Canada, Australia, and the Caribbean.

John Duffy, chair of the International Consortium of British Pensioners, said: “We are standing outside of the Department for Work and Pensions to call on the UK Government to end its archaic frozen pensions policy. Last week, the Government committed to upholding the pensions triple lock and uprating state pensions for those who, as they recognise, built the country we live in.

“We stand here today on behalf of the half a million British pensioners who will not receive this increase, and instead continue to have their pension payments frozen. We are not asking for special treatment, just to be treated the same as British pensioners residing in countries such as the US, France and Jamaica. It is time for the UK Government to treat all its pensioners fairly and assign this injustice to the history books.”

The End Frozen Pensions campaign estimates some 520,000 pensioners living overseas are impacted by the policy.

Sheila Telford, director of the International Consortium of British Pensioners, added: “We are delivering our representations to the Department for Work and Pensions on behalf of frozen pensioners around the world. These letters highlight the financial and mental hardship caused by this cruel postcode lottery.

“British pensioners are losing thousands of pounds every year and as inflation rises the policy will cause further suffering. We hope the Department for Work and Pensions will read these letters and work with affected countries to resolve this issue for good.”

Previously, a DWP spokesperson told Express.co.uk about the £110 billion spending on state pensions, ensuring every pensioner receives the financial support they are entitled to." The spokesperson said: "We understand that people move abroad for many reasons and we provide clear information about how this can impact their finances.

“The Government’s policy on the uprating of the UK state pension for recipients living overseas is a longstanding one of more than 70 years and we continue to uprate state pensions overseas where there is a legal requirement to do so.”

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