What is the Problem?

The Issue:

460,000 British expatriate state pensioners have never received any uprating to their pension since they received their first payment whilst living in a 'frozen' country.

390,000 British expatriate pensioners, on the other hand, receive the same annual uprating as the pensioners still residing in the United Kingdom.

All UK state pensioners were required to contribute on an equal basis during their working life whilst resident in Britain.

Countries Where Pensions Are Frozen:

No uprating has ever been paid to pensioners living in 48 of 53 Commonwealth countries, representing 98% of all frozen pensioners. The remaining 2% are spread across 100 other non-Commonwealth countries.

Countries Not Affected by Pension Freezing:

Annual uprating is paid to UK resident pensioners, pensioners living in the European Union (where regulations forced Britain to treat all EU residents alike), and to those living in the USA, Israel, Bosnia-Herzegovina, etc.: in total 35 countries.

Britain is the only OECD (western developed) country which discriminates against some of its contributory pensioners in this way.

Non-Frozen Commonwealth Countries
UK, Barbados, Bermuda, Cyprus, Gibraltar, Jamaica, Malta, Channel Islands, Isle of Man, and a number of small Protectorates.

Rounded Totals by Segment
Total World Frozen	460,000
Total World Non-Frozen	390,000
UK (non-frozen)	10,040,000
Total all UK pensioners	10,890,000

Effect on Pensioners:

An 85 year-old woman retired on a full pension and went to live near her children in a non-uprated country. By 1999 she had been deprived of more than £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 British 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 1974: £10/week.
• 1999 pension payment: £10/week.
• Total pension benefit paid over 25 years: £14,020

Non-Frozen Country Resident (e.g. U.K., U.S. or E.U. member state etc.)

• First pension received 1974: £10/week.
• 1999 pension payment: £66.75/week.
• Total pension benefit paid over 25 years: £53,812^*

Benefit Advantage to Non-Frozen vs. Frozen Country Resident Over 25 Years

• More than £40,000
• Put another way, in 1999 this frozen pensioner had been cheated out of more than £40,000!

^* Please Note: Assumes indexing changes were made in January of each year. Totals are approximate.

By ending this shameful pension discrimination, the British 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!