Thousands warn they're 'living in poverty' amid pensions freeze

Nearly 21,000 individuals have rallied behind an online petition demanding the cessation of 'freezing' State Pensions for retirees living in nations lacking a reciprocal arrangement with the UK Government. Thousands of pensioners say they are "living in poverty", despite having contributed the full amount of National Insurance years while working.

The International Consortium of British Pensioners, representing approximately 450,000 expatriates impacted by 'frozen pensions', is championing the 'End Frozen Pensions' initiative. This seeks to "end the injustice" faced by British citizens who have relocated overseas and whose State Pensions do not increase annually with the Triple Lock each April.

A video accompanying the petition showcases the plight of some Brits now living in countries like Australia, Canada, South Africa, Antigua, Malaysia, and Thailand, who have had their State Pension amounts fixed since they left the UK. Margaret, now based in Australia, has been receiving a weekly State Pension of £24 for the past 23 years as a result of it being frozen.

Anne Puckidge, aged 99, a veteran of the Second World War who continued working in the UK until she was 76 and fully paid her National Insurance dues, found her State Pension stalled at £72.50 per week after moving to Canada to live nearer to her daughter and grandchildren, reports the Daily Record.

James, aged 72 and now residing in Australia, has expressed his frustration at the "difficult and unfair" situation he faces with his State Pension being frozen after emigrating. This was despite having paid for additional National Insurance years to compensate for a shortfall.

The International Consortium of British Pensioners highlights the plight of those affected by the frozen State Pensions, noting that many worked in essential public services such as nursing, firefighting, policing, and some served in the military. The consortium stated: "Many are now living in poverty despite paying their National Insurance Contributions in full."

John, who lives in Canada, is dealing with the devaluation of his weekly State Pension, which stands at £80. He commented: "It's already lost a quarter of its value."

He also shared his disillusionment with the Commonwealth connection, saying: "I thought the Commonwealth had very special ties to the UK, but that is apparently not the case. In fact, if I were only to move about 200 miles further south across the US border, my pension would be fully indexed."

The Triple Lock policy

Regarding the Triple Lock policy, it ensures that the State Pension increases annually by the highest of three factors: average annual earnings growth from May to July, the Consumer Price Index (CPI) inflation rate for the year to September, or 2.5 per cent.

Following the Triple Lock formula, New and Basic State Pension payments saw an 8.5 per cent rise in April. Currently, the full New State Pension amounts to £221.20 each week, equating to £11,502 annually, while the full Old or Basic State Pension is £169.50 weekly, totalling £8,814 for the financial year 2024/25.

The issue of frozen State Pensions has become a topic of discussion in political party manifestos. Ahead of the General Election on July 4, none of the political parties have tackled the contentious issue of frozen State Pensions in their manifestos.

Conservative Party

Speaking about the Tory manifesto, Edwina Melville-Gray, a representative for the International Consortium of British Pensioners, remarked: "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."

She added: "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."

She also pointed out: "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."

Furthermore, she criticised the Government's approach, saying: "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."

Labour Party

Ms Melville-Gray expressed her views on the Labour manifesto, stating: "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."

She continued by highlighting the plight of pensioners affected by this issue: "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."

Ms Melville-Gray then addressed Labour's previous stance: "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."

Liberal Democrats

Turning her attention to the Liberal Democrats, Ms Melville-Gray remarked: "We are deeply disappointed by the lack of commitment in the Liberal Democrat manifesto, towards ending 'frozen' pensions and the longstanding injustice dealt to nearly half a million British pensioners living overseas."

She further stated: "Despite this Party's previous support on this issue, we are faced once again with empty promises and a political party unwilling to stand up for this key, yet further forgotten, group."

Reform UK

John Duguid, Chair of the International Consortium of British Pensioners, expressed his disappointment about the Reform UK contract, stating: "We're deeply disappointed that ending the scandal of so-called 'frozen pensions' that condemns many of the nearly half a million affected UK State Pensioners to poverty doesn't appear to be part of Reform UK's 'contract' with the voter."

"This is particularly upsetting given that the document clearly says that 'Our Elderly Deserve to be Treated with Dignity and Respect'. We renew the appeal to Mr Farage, so powerfully expressed in a letter hand-delivered to his HQ from the 99-year-old Second World War veteran Anne Puckridge to commit to end this scandal."

You can watch the video and view the 'End Frozen Pensions' campaign petition on the website here.