What is the Problem?
The videos, and chart, together with Pension Rates and Indexing Loss Calculations below, may help you understand our longstanding Issue:
Peter Bottomley,Unfairness of UK Frozen Pension Policy
The UK is the ONLY western, developed nation that discriminates amongst contributory state pensioners based on their country of residence!
Almost 600,000 British Overseas Pensioners have never received any uprating to their pension, whilst approximately the same number receive the annual uprating (indexing) as the pensioners still residing in the UK. There are approximately 13 million UK Basic State Pensioners in total.
We were ALL required to contribute on an equal basis during our working life whilst resident in Britain and now we are treated indifferently!
No uprating has ever been paid to pensioners living in 48 of 53 Commonwealth countries, representing 91% of all frozen pensioners. The remaining 9% are spread across 70 other non-Commonwealth countries.
Annual uprating is paid to pensioners resident in UK, pensioners living in the European Union, and to those living in the USA, Israel, Bosnia-Herzegovina, Turkey, etc., (in total 50 countries)
Effect on Pensioners
An 85 year-old woman retired in 1984 on a full pension and went to live near her children in a non-uprated country. By 2009 she had been deprived of about £40,000 since she retired 25 years ago. Very few elderly pensioners can afford a loss of that magnitude.
Many of these pensioners live in countries with no social security net, rendering them virtually destitute. Others are in countries with reduced entitlement and/or access to very limited benefits. All are deprived of a portion of their pension income needed to provide the basics of life which is properly the UK Government’s responsibility.
Over 60% of the pensioners affected are women, further widening their income gap.
Please refer to the UK basic State Pension Rate History table (below) to better understand this example.
Frozen Country Resident (e.g. Australia, Canada, New Zealand, South Africa, Zimbabwe, etc.)
- First pension received in 1984: £35.80/week.
- 2009 pension payment: £35.80/week.
- Total pension benefit paid over 25 years: £46,540.00
Non-Frozen Country Resident (e.g. U.K., U.S. or E.U. member state etc.)
- First pension received 1984: £35.80/week.
- 2009 pension payment: £95.25/week.
- Total pension benefit paid over 25 years: £85,485.00*
Benefit Advantage to Non-Frozen vs. Frozen Country Resident Over 25 Years
- Almost £40,000
- Put another way, by 2009 this frozen pensioner had been cheated out of about £40,000!
UK Basic State Pension Rates & Indexing Loss Calculator
By ending this shameful pension discrimination, the UK Government would display the integrity its citizens expect, enable pensioners to afford the personal care and standard of living required in their retirement years, help return some degree of pride to the lives of pensioners, and bring Britain in line with all other developed countries!
Full Weekly Benefits are shown below, however, payments will be dependent on the proportion of an individuals contribution:
|Prior to 1948||£0.50||£1.00||1986||£38.70||£63.25|
How much pension would I be getting if it wasn’t frozen?
Starting April 2012 Full Weekly Pension is £ 107.45
Year Single Married ILF (Indexing Loss Factor)
Table supplied courtesy of British Pensions in Australia (BPiA) – with some minor amendments made.