New State Pension ‘Triple Lock Plus’ will not increase monthly payments for nearly half a million older people

The Conservative Party manifesto confirms that a General Election win on July 4 will see the introduction of the ‘Triple Lock Plus’, a new measure that will ensure the Personal Allowance - which has been frozen at £12,570 since April 2021 - rise in-line each year with the Triple Lock. This guarantee would mean that the Personal Allowance is always higher than the maximum rate of the New State Pension, which is now worth £11,502 annually.

The Triple Lock Plus is designed to prevent older people, whose sole income is the New State Pension, from being dragged into the tax net. The measure is forecast to cost £2.4 billion over the course of the next parliament.

However, while the new guarantee will ensure payments rise for more than 12.5 million pensioners living in the UK, the International Consortium of British Pensioners (ICBP) estimates that 450,000 retirees living abroad will not benefit from it. They have highlighted how the issue of so-called ‘frozen pensions’ could be resolved for £50m.

Under the Triple Lock, the New and Basic State Pensions increase each year by whichever is the highest of - average annual earnings growth from May to July, Consumer Price Index (CPI) inflation in the year to September or 2.5 per cent.

However, nearly half a million older people living overseas currency do not qualify for any uplift to their payments - even though they have accrued the required amount of National Insurance Contributions before taking retirement.

This is because they are now living in a country that does not have a reciprocal agreement with the UK Government.

This means that some retirees have seen their State Pension frozen at the point of emigration. But, the ‘End Frozen Pensions’ campaign aims to end the “injustice of pensions for Britons who have moved abroad” who do not receive the annual increase in line with the Triple Lock policy.

Commenting on the Conservative Party manifesto, Edwina Melville-Gray, spokesperson for the International Consortium of British Pensioners, said: “For less than £50 million the Prime Minister and his Conservative Party could have ended this long running scandal that condemns many of the nearly half a million affected overseas UK State Pensioners condemned to poverty.

“Some of those affected are receiving a UK State Pension as little as £20 per week. It seems politically bizarre not to have done so. Many of the overseas pensioners can vote for the first time due to the recent changes in the overseas voting rules introduced by his Government.

“Whilst the decision on who to vote for is rightly an individual and private matter, it surely can’t be lost on the Prime Minister and his advisers that many of our members are desperate to vote for Parties committing to address this injustice.

“And it seems particularly tone deaf to be trumpeting the creation of a Minister for Overseas Britons whilst ignoring the biggest political and financial issue for half a million of them. We renew our appeal to the Conservatives to put this right.”

On Thursday, the Labour Party published its election manifesto and similar to the Conservatives and Liberal Democrats, it makes no mention of frozen pensions.

Commenting on the Labour manifesto, Ms Melville-Gray, said: “While we commend the Labour commitment to review the pensions landscape and improve pensions outcomes, today’s announcement remains a missed opportunity to address the longstanding ‘frozen pensions’ scandal.

“Half a million disenfranchised, forgotten overseas pensioners are looking for a political home in the first election in decades that many can now vote in since the change to overseas voting rules. Excluded from the yearly State Pension increases and forced into financial hardship as a result, many are led to cutting down on food, medicine and other essentials, and still await a full recognition of their ongoing suffering.

“Labour backed an end to this cruel policy in 2019. It is disappointing that this ‘Government in waiting’ has made no such pledge today. We sincerely hope that Labour will stand up to its commitments, and conducts a full review of the State Pension to include addressing this deeply harmful, purely arbitrary policy.”

The End Frozen Pensions campaign website also highlights how many of the State Pensioners affected worked as nurses, firemen, police officers and other public servants, some are military veterans.

Campaigners warn “many are now living in poverty despite paying their National Insurance contributions in full”.

The End Frozen Pensions campaign explains: “They moved, often to be near family, to live in one of the countries without a reciprocal agreement to inflation link their State Pension, so their pension is ‘frozen’ at the level it was at when they left the UK.

“Those in countries with reciprocal agreements are unaffected so if you were a pensioner in the USA you would continue to get an uprating, but if you lived just across the border in Canada you would not.

“We believe this is deeply unfair and arbitrary and penalises hard working Britons.”

As an example of the difference between State Pensions for those living in the UK and those in a non-reciprocal agreement country, a pensioner aged 90 who has lived in a ‘frozen country’ for the duration of their retirement will receive a State Pension of just £43.60 per week - if they had continued to live in the UK they would be receiving £169.50.

Campaigners also point out the highest numbers of affected State Pensioners are living in some of the largest Commonwealth countries such as Australia and Canada.

Retired expats in the European Economic Area (EEA) will continue to receive annual increases to their State Pensions under the Triple Lock, as will those in a host of other countries including the Philippines and Turkey.

Online petition

An online petition on the End Frozen Pensions website has already received more than 20,600 signatures of support.

One story involves Anne, who is 98 and served in the Second World War who worked in the UK up until the age of 76. She paid her National Insurance in full, however, when she left the UK and moved to Canada to be closer to her daughter and grandchildren, her State Pension was frozen at £72.50 per week.

Her State Pension doesn’t increase in-line with the triple Lock, so it falls in real value year-on-year. If she had stayed in the UK she would be receiving £156.20 per week on the Basic State Pension rate.

The petition highlights a number of people who have retired abroad and are missing out on the annual State Pension uprating. You can view the video and petition here.

New State Pension payment rates 2024/25

• Full payment rate: £221.20

• Every four-week pay period: £884.80

Basic State Pension payment rates 2024/25

• Category A or B Basic State Pension (full rate): £169.50

• Every four-week pay period: £678.00

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