The UK Government’s ‘frozen pensions’ policy means that nearly half a million British pensioners living abroad won’t benefit from the annual uprating of the State Pension
With the new 4.1 per cent pension increase this month, the full New State Pension will be valued at £921 each monthly payment period alongside the full Basic State Pension rate increase of £705.80.
However, it’s estimated that around 453,000 pensioners residing in countries without a reciprocal agreement with the UK Government won’t receive the annual State Pension uprating, despite having made the necessary National Insurance Contributions to qualify for the state Pension.
Campaigners representing nearly half a million ex-pats are optimistic that the recent election of Mark Carney as Prime Minister of Canada could signal an end to the so-called ‘frozen pensions policy’.
Mr Carney, who spent several years working in the UK, most notably as the Governor of the Bank of England, is likely to qualify for a UK State Pension, despite moving back to Canada, according to the End Frozen Pensions Campaign.
However, like over 100,000 ex-pats living in Canada who receive the State Pension, his could be frozen at the level it is when he first claims it, reports the Daily Record.
Campaigners have pointed out that this is due to the UK Government’s long-standing policy which results in hundreds of thousands of UK State Pensioners missing out on the annual payment increase because they’ve retired overseas to certain countries.
Mostly Commonwealth countries, including Canada and Australia, are impacted by this policy, while pensioners living in the USA or EU countries receive the same State Pension considerations as if they had remained in the UK.
Edwina Melville-Grey, Chair of End Frozen Pensions Canada, remarked: “We don’t imagine for a moment that Mr Carney will be reliant on whatever UK State Pension he might be entitled to. 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 tough times.
“We know that he has many immense challenges on his desk right now and wish him well in meeting those. But we hope he will be able, when the time is right, to meet with our lead campaigner on this issue, 100-year-old Anne Puckridge. Her situation embodies the injustice of this scandal.”
Anne made a journey to the UK in December 2024 to lobby the UK Government, requesting a meeting with Prime Minister Sir Keir Starmer on the matter. However, he declined the invitation.
For the past 24 years, Anne, a 100 year old Second World War veteran who served in all three-armed forces, has been receiving a State Pension of just £72.50 per week – less than half the £176.45 she would have been entitled to in April 2024 had she not left the UK at the age of 76 after having worked her entire life in the UK.
Campaigners are sounding the alarm on the plight of many pensioners facing severe financial hardship, with half receiving less than £65 a week and some scraping by on as little as £20.00 weekly.
The Chair of End Frozen Pensions International, John Duguid, is calling for urgent policy reform, stating, “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.”
Duguid also insists now is the prime time to tackle the issue, especially amid global economic discussions: “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.”
A staggering 453,000 British ex-pats represented by the International Consortium of British Pensioners (ICBP) are hit hard by ‘frozen pensions’, missing out on the annual State Pension increase based on the Triple Lock mechanism each April.
Driven to fight this injustice, the ‘End Frozen Pensions’ campaign aims to erase the unequal treatment and secure fair outcomes for these pensioners.
The Canadian Alliance of British Pensioners has examined the situation and suggests that the new Labour Government could align frozen State Pensions to current rates with an investment of £50 million. Their research shows that payments to countries where pensions remain unchanged account for only 1.3 percent of Britain’s total annual government expenditure.
You can find out more about the End Frozen Pensions Campaign on their website here.
Predicted State Pension payouts for the fiscal year 2025/26 have also been announced.
State Pension payments 2025/26
The Department for Work and Pensions (DWP) has released the complete list of uprated State Pension and benefit payments on GOV.UK, which also includes additional elements such as the deferred rates, rising by 1.7 per cent (September Consumer Price Index inflation rate).
Full New State Pension
- Weekly payment: £230.25 (from £221.20)
- Fortnightly payment: £460.50 (from £442.40)
- Four-weekly payment: £921 (from £884.80)
- Annual amount: £11,973 (from £11,502)
Full Basic State Pension
- Weekly payment: £176.45 (from £169.50)
- Fortnightly payment: £352.90 (from £339)
- Four-weekly payment: £705.80 (from £678)
- Annual amount: £9,175 (from £8,814)
Future State Pension increases
The Labour Government has committed to uphold the Triple Lock for the duration of its term, and the latest forecasts show the following projected annual increases:
- 2025/26 – 4.1%, the forecast was 4%
- 2026/27 – 2.5%
- 2027/28 – 2.5%
- 2028/29 – 2.5%
- 2029/30 – 2.5%
Recent analysis from Royal London revealed that only about half of the people receiving the New State Pension last year were getting the full weekly amount – and around 150,000 were on less than £100 per week.