An all-party parliamentary group of British MPs has lent its support to a campaign to end so-called “frozen pensions” which cause more than 500,000 expats to receive lower state pensions because of where they chose to live.
It is estimated some pensioners are receiving up to £4,000 a year less than their peers with similar savings but who happen to reside in different countries. Many countries, such as those in the European Economic Area (EEA), America and even Turkey, have reciprocal agreements with the UK. These ensure British expats receive the same income from their state pension as they would in the UK.
Others, including countries such as Canada, Australia and New Zealand, lack any such provision. This means expats’ pensions can remain tied to the interest rate at the time they emigrated.
A spokesman for the End Frozen Pensions campaign said: “By building a parliamentary alliance we will stop this Government trick and end the frozen pension policy.”
The motion to change the law in favour of equality for expatriate state pensions is scheduled for spring 2019. If passed, the new law will, according to the Mail on Sunday, cost the government £200m a year by 2020.