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State pension UK: Issue of frozen pension for expats to Canada will be addressed ’shortly’ | Personal Finance | Finance

State Pension payments vary according to someone’s National Insurance contributions, but the full new state pension sum currently stands at £175.20 per week. Under the Triple Lock Mechanism, the state pension will increase each year by the highest of inflation, 2.5 percent or average earnings growth. In the coming tax year, payments are set to increase by 2.5 percent, providing good news for many pensioners.

Increases are guaranteed for those living in the UK and other specific countries, and rights have been guaranteed even after Brexit.

The Government explained those living in the EU, European Economic Area (EEA) or Switzerland can still claim their UK State Pension, alongside certain countries with a social security agreement with the UK. 

This will increase for those in the EU in line with the rate which is paid in the UK.

However, those who have retired to other countries have recently expressed concern with the freeze on the state pension sum once they leave the UK.

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He said: “The Department for Work and Pensions has not had any recent discussions on this issue with the government of Canada.

“The Department plans to respond shortly to the request from Canada for a reciprocal social security agreement.”

The report from the All-Party Parliamentary Group (APPG) revealed thousands of pensioners are currently living under a “frozen” arrangement. 

As of the 510,000 UK pensioners currently living on a “frozen” pension, 150,000 of these live in Canada, with an additional 230,000 based in Australia. 

The group said: “The overall finding of the APPG is that this policy is illogical, unfair and causes significant distress.

“The governments of both Canada and Australia submitted evidence in which they confirm a readiness and willingness to work with the UK Government to end this policy.

“Both administrations criticised the policy and said they had made representations to the UK Government on behalf of UK pensioners suffering in their countries.”

The report has called for a Government review of the current policy, and urged further action to be taken on reciprocal social security agreements.

Sir Roger Gale, who chairs the APPG, described frozen pensions in the report as a “disgrace and a matter of national shame”. 

For those who do choose to live abroad, the government website explains, their pension will go up to the current rate if they choose to return to live in the UK.

Britons can reach out to the International Pension Centre for further guidance on the matter.

The centre can offer advice on how a pension could be affected if a person chooses to move abroad. 

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