
Thu Sep 12 14:10:00 UTC 2024: ## UK Pensioners Abroad Miss Out on State Pension Increase Despite 4% Rise
**London, UK -** While the recent announcement of a 4% increase in the state pension brought relief to many pensioners in the UK, a significant group has been left behind. An estimated 500,000 British pensioners living abroad will not benefit from the rise, due to a long-standing policy that freezes their pensions if they reside in countries without reciprocal agreements.
This policy, rooted in 1955, means that pensioners living in Commonwealth countries, including Australia, Canada, and New Zealand, receive no annual increases. Despite the UK having reciprocal agreements with many European countries and the USA, these arrangements don’t extend to the Commonwealth, leaving many retirees facing financial hardship.
Sheila Wills, an 87-year-old pensioner living in South Africa, spoke about the difficulties she faces with a frozen pension. She explained that her only income is her British state pension, which amounts to a meager £67 per week. She is calling on the government to reconsider the policy, which she describes as “totally immoral.”
A group of elderly Britons is campaigning for the Prime Minister to scrap the policy, arguing that it unfairly punishes pensioners who made contributions to the UK economy. They are joined by the International Consortium of British Pensioners, who argue that the cost of reversing the policy would be significantly less than the government’s estimates.
The Department for Work and Pensions (DWP) has defended the policy, claiming it is a “longstanding one of more than 70 years.” They continue to argue that they uphold the requirement to uprate pensions overseas when legally obligated to do so.
The Labour Party’s manifesto did not address the issue of frozen pensions during the last general election. The debate surrounding this contentious policy remains ongoing, with a potential solution yet to be reached.