Labour issues major update over 450,000 state pensioners who miss out on Triple Lock

Labour has issued a major update over 450,000 state pensioners who miss out on the Triple Lock. State pension payments will increase 4.1 per cent next year in line with the Triple Lock - but 450,000 state pensioners living abroad will miss out.

To get the yearly rise, you have to live in the UK, in a European Economic Area country, in Gibraltar or in Switzerland. Anne Puckridge is among them, and has gone viral with her story of having her pension frozen at age 99 having moved to Canada in 2001.

In an update, pensions minister, Emma Reynolds, said there are "no plans to hold discussions" with Ms Puckridge about the policy. She then argued the Triple Lock metric has "no direct relevance" if a pensioner is living overseas.

READ MORE: Lloyds and NatWest customers issued warning which could cost them £200

READ MORE: Why you should keep your curtains open when it's cold outside

READ MORE 29 parts of England set for snow on Tuesday and Wednesday according to Met Office

The Labour minister also pointed out that the rules for uprating pensions for those living abroad are a "longstanding" policy with payments increased "where we have a legal requirement to do so, for example in countries with which we have a reciprocal agreement that provides for up-rating".

She commented: "People move abroad for many reasons and this can have an impact on their finances. However, the decision to move abroad is voluntary and remains a personal choice dependent on the circumstances of the individual."

Ms Reynolds stated: "For a number of years, advice has been provided to the public that the UK state pension is not uprated overseas except where there is a legal requirement to do so. HM Revenue and Customs and the Department for Work and Pensions publish information on the Government website."

Myron Jobson, senior personal finance analyst at Interactive Investor, commented: “Moving abroad can be a dream come true for many Britons, especially as they approach their golden years. However, it is crucial to keep an eye on the finer details, particularly when it comes to your state pension.

“If you're planning to retire in a country where the UK state pension is frozen, it means you won't benefit from the annual increases that help keep up with inflation, and as such, your payments will decline in real terms throughout your retirement. This could significantly impact your financial comfort in later years, leaving some facing poverty in old age.”