Almost half a million state pensioners are facing a £470 shortfall in their bank accounts. According to Department for Work and Pensions (DWP) rules, 453,000 pensioners living abroad will not receive the annual State Pension uprating.
Notably, over 100,000 expats in Canada are among those affected. Although the UK state pension is payable overseas, it is only “uprated” annually if a reciprocal social security agreement is in place.
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.”
For these pensioners, their state pensions remain stagnant, frozen at the level reached when they moved abroad or became eligible for the payment.
Melville-Grey added: “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.”
The group hopes that, when the time is right, they can meet with their lead campaigner, 100 year old Anne Puckridge, to discuss the issue, reports Birmingham Live.
John Duguid, Chair of End Frozen Pensions International, highlighted the plight of those affected by ‘frozen’ pensions.
Duguid said: “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 emphasised the timeliness of addressing this issue: “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.”
Anne Puckridge, a pensioner affected by the policy, shared her personal hardships: “I can’t remember when I bought anything new, and I have to limit even essential purchases to thrift and similar stores.
“Social activity and entertainment are mainly only memories, and festive seasons such as the approaching Christmas or birthdays are embarrassing rather than exciting events.”
In response to the concerns raised, the DWP previously commented: “We understand people move abroad for many reasons, and we provide clear information on how this can impact their finances in retirement, with the policy on the uprating of the UK state pension for recipients living overseas a longstanding one.”
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