A shocking 500,000 British pensioners are set to miss out on a £470 increase to their state pensions because of the frozen pensions policy. The End Frozen Pensions Campaign has highlighted how nearly half a million pensioners are being left behind, particularly those living in countries that do not have reciprocal agreements with the UK.
These pensioners’ payments have been frozen at the rate they received when they either left the UK or started their pension, and they don’t benefit from annual state pension increases. This leaves them with diminishing purchasing power each year, reports Birmingham Live.
What is the Frozen Pensions Policy?
The frozen pensions policy affects British retirees who live in countries that don’t have bilateral agreements with the UK. These pensioners don’t get the benefit of the annual uprating (increases) made to pensions under the Triple Lock System.
As a result, their pensions stay frozen at the amount they received when they first left the UK, and with inflation and rising living costs, their pensions lose value each year.
Campaigners Call for Change
The End Frozen Pensions Campaign is demanding that the Department for Work and Pensions (DWP) change the policy. They argue that the UK government’s inaction on this issue is a longstanding failure to protect its most vulnerable citizens.
Campaigners said:
“The frozen pensions policy is a political choice and an accident of history. It could be ended unilaterally by the UK through domestic legislation.”
The campaign also highlights the contribution of these pensioners to British society, including over 60,000 veterans and many civil servants. These pensioners have spent their working lives in the UK, yet their pensions are now being frozen, which is creating financial hardship.
The Impact of Frozen Pensions on Pensioners
The campaign also reported that nearly 4 in 10 pensioners have had to reduce spending on essential items like food and medicine because of their frozen pensions. Over half (51%) of pensioners surveyed admitted to facing financial difficulties due to the lack of pension increases.
Government Response
Despite the growing concerns, the UK government has stuck to its position regarding the frozen pensions policy. A government spokesperson explained:
“UK State Pensions are payable worldwide, but are only uprated abroad where there is a legal requirement to do so, such as in countries with reciprocal agreements.”
They added:
“There are no plans to widen Bilateral Social Security Agreements to include uprating of pensions paid to recipients abroad.”
While this official response has not changed, it has led to significant frustration among pensioners who feel they are being unfairly left out of annual pension increases.
How Much Are Pensioners Missing Out On?
Under the Triple Lock system, pensioners in the UK received an increase of £470 this year. However, those affected by the frozen pensions policy will not see this increase. With 500,000 pensioners affected, this means millions are losing out on valuable pension income, which they would otherwise receive had they remained in the UK.
The frozen pensions policy is leaving half a million pensioners in a difficult position, as they continue to miss out on the £470 increase provided by the Triple Lock. Campaigners are urging the government to review the policy and ensure that pensioners, regardless of where they live, are not financially disadvantaged in their retirement.
For now, pensioners affected by this policy may continue to struggle financially, with their pensions remaining frozen despite years of contributions to the UK system.
FAQ’s
What is the frozen pensions policy?
The frozen pensions policy affects pensioners living in countries without reciprocal agreements with the UK, meaning their pensions remain frozen at the rate when they started receiving them.
Why are pensioners missing out on the £470 increase?
Pensioners living abroad in countries with no reciprocal agreements do not benefit from the annual uprating provided by the Triple Lock system, missing out on the £470 increase in their state pensions this year.
How many pensioners are affected by the frozen pensions policy?
Around **500,000 pensioners** are affected by the frozen pensions policy and are missing out on the annual increase that other pensioners receive under the Triple Lock system.
What does the End Frozen Pensions Campaign want?
The campaign is calling for the UK government to revise its policy on frozen pensions and ensure pensioners abroad receive the same benefits as those in the UK, including pension uprating.
What is the Triple Lock system for pensions?
The Triple Lock system is a policy that guarantees UK pensions increase annually by the highest of **earnings, inflation, or 2.5%**, ensuring pensioners get a fair rise in their income each year.
