From April 7, millions of individuals on the New or Basic State Pension will benefit from a 4.1 per cent increase in their weekly payments, thanks to the Triple Lock. However, nearly half a million pensioners living abroad in countries without a reciprocal agreement with the UK Government will miss out on this annual uprating.
Despite campaigns urging the UK Government to align State Pensions with current payment rates and reinstate the Triple Lock for UK retirees overseas, the Department for Work and Pensions (DWP) has recently stated that it "is not negotiating any reciprocal social security agreements". DWP Minister Sir Stephen Timms confirmed that out of the 12.9 million people of State Pension age, only 12.5 million will receive the 2025/26 uprating.
Sir Stephen explained: "From April 2025, around 12.5 million people receiving either the Basic or New State Pension will see it increased by 4.1 per cent, in line with our commitment to the Triple Lock. Some people will receive an increase of 1.7 per cent (in line with price inflation) on other elements of their State Pension, including Protected Payments and additional State Pension."
He also noted: "Under both the Basic and New State Pensions, the amount people are entitled to, and the annual increases, vary according to the individual's National Insurance record, but both reflect the National Insurance contributions they have made."
Some 453,000 pensioners who have chosen to retire abroad in countries without a reciprocal agreement with the UK Government will miss out on increased State Pension payments. Many of these retirees have had their State Pension 'frozen' at the rate it was when they emigrated, reports the Daily Record.
With the earnings growth element of the Triple Lock set at 4.1%, those on the full New State Pension will see an increase of £9.10 per week, from £221.20 to £230.30. This equates to an additional £921.20 for every four-week payment period.
Over the financial year 2025/26, this means annual payments will go up by £473.60, from £11,502 to £11,975.60. Similarly, recipients of the full Basic State Pension will experience a weekly rise of £6.95, from £169.50 to £176.45, which translates to an extra £705.80 every four weeks.
Their annual payments will increase by £361.40, from £8,814 to £9,175.40 during the same financial year. The International Consortium of British Pensioners (ICBP) represents approximately 453,000 expats affected by 'frozen pensions'.
They are leading the 'End Frozen Pensions' campaign, which seeks to "end the injustice" faced by British expatriates whose State Pensions do not increase annually in line with the Triple Lock each April.
Many retirees now residing in countries without a reciprocal agreement with the UK, such as Canada, Australia and New Zealand, have experienced a freeze on their State Pension. This is despite having worked and lived in the UK for the majority of their lives and having paid their share of National Insurance Contributions, which would entitle them to State Pension payments - if they hadn't moved abroad.
To be eligible to claim the State Pensions, you need at least 10 years' worth of National Insurance Contributions and approximately 35 years for the full amount, although this may increase if you have been 'contracted out'. Analysis by the Canadian Alliance of British Pensioners suggests that all these frozen State Pensions could be updated to match current State Pension pay rates by the new Labour Government for £50 million.
Its analysis indicates that State Pension payments to frozen countries only account for 1.3 per cent of the UK Government's total annual expenditure.
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