DWP £470 per Year: Thousands of British expats are facing a harsh financial reality as they miss out on the UK’s Triple Lock state pension increase—worth an extra £470 annually—due to an outdated and controversial policy known as the “frozen pensions” rule. Nearly 453,000 pensioners living abroad are affected, sparking frustration and renewed calls for reform.
Under current rules, UK state pensions only rise annually for those living in countries that have a reciprocal social security agreement with the UK or are part of the European Economic Area (EEA) and Switzerland. Everyone else? Their pensions remain frozen at the rate they first received them—sometimes for decades.
What Is the Frozen Pension Policy?
The frozen pension policy denies annual pension increases to retirees living in certain countries. For example, a UK retiree who moved to Canada or Australia in the 1990s still receives their pension at 1990s rates—no inflation adjustment, no Triple Lock boost.
This means some expats are living on as little as £30 per week, while others in countries like the USA receive full annual increases.
The policy has long been criticized as arbitrary and unfair, with critics pointing out inconsistencies such as the UK indexing pensions in the USA, but not in Canada or Australia, even though they are all long-standing allies and former Commonwealth nations.
Who Is Affected?
According to the End Frozen Pensions campaign, approximately 453,000 British pensioners are affected, with large numbers residing in:
- Canada
- Australia
- New Zealand
- South Africa
- India
- Thailand
- Parts of the Caribbean
These pensioners make up around half of all UK retirees living overseas.
Examples of Frozen Pension Countries:
| Affected Countries (No Annual Increase) |
|---|
| Australia |
| Canada |
| New Zealand |
| South Africa |
| India |
| Pakistan |
| Nigeria |
| Thailand |
| Bangladesh |
| Kenya |
In contrast, UK state pensions do increase annually in EEA countries, Switzerland, and a select group of other nations.
Where Your Pension Does Increase
Here’s where UK pensioners do receive the Triple Lock increase:
EEA and Switzerland:
- Austria, Belgium, France, Germany, Ireland, Italy, Spain, Sweden, and others.
Countries with a Social Security Agreement:
- USA
- Turkey
- Jamaica
- Mauritius
- Israel
- Bosnia-Herzegovina
- Barbados
- Gibraltar
- Guernsey
- Jersey
- Philippines
Table: Countries with Annual Pension Increases
| EEA + Switzerland | Countries with Agreement |
|---|---|
| France, Germany, Italy | USA, Jamaica, Turkey |
| Spain, Sweden, Norway | Barbados, Mauritius, Israel |
| Ireland, Belgium, Austria | Philippines, Gibraltar |
Political Pressure Mounts
Campaigners are calling on the Labour Party to abolish the frozen pensions policy. With Mark Carney, former Bank of England Governor, being considered for Canadian Prime Minister, advocates see a new diplomatic window opening.
John Duguid, Chair of End Frozen Pensions International, believes Carney’s influence could help forge a new bilateral deal between the UK and Canada.
He argues that unfreezing pensions would cost relatively little compared to the life-altering support it would provide to struggling retirees abroad.
Real-Life Impact on Families
The policy doesn’t just affect retirees—it impacts families. One British pensioner shared:
“My daughter is trying to get us to move to Brisbane, but if we move to Australia our pensions are frozen… The wife and me, both becoming old and infirm, can’t join our only child.”
Others pointed out the irony:
“You get the increase if you live in Trump-land USA, but not if you live in Canada. Make sense of that if you can.”
And during Commonwealth Week:
“All these countries are old Commonwealth countries. Strange on a week when we celebrated the Commonwealth.”
Why Does the Policy Exist?
The UK government has historically claimed that reciprocal agreements are necessary to justify annual increases. However, critics argue that this is a political choice, not a legal obligation, and the cost to unfreeze pensions is modest compared to the human impact.
What Could Change?
With public pressure growing and a potential shift in diplomatic leadership, especially in countries like Canada, the frozen pensions issue may gain renewed attention.
Ending the policy could bring long-overdue relief to half a million pensioners and ensure fair treatment for all UK retirees, regardless of where they live.
FAQ
Why are some UK state pensions frozen abroad?
UK state pensions are frozen in countries that do not have a reciprocal social security agreement with the UK. Without this agreement, annual increases such as the Triple Lock are not applied, meaning pensions remain at the amount first received.
Which countries have frozen UK state pensions?
Countries such as Canada, Australia, New Zealand, South Africa, and India are among those where UK state pensions are frozen. These nations do not have an agreement in place with the UK for annual pension increases.
Can the frozen pensions policy be changed?
Yes, the policy could be changed if the UK government decides to extend pension uprating to currently excluded countries or negotiates new agreements. Campaigns like End Frozen Pensions continue to pressure lawmakers to address this issue.
Do UK pensioners in the USA receive annual increases?
Yes. The UK has a reciprocal agreement with the USA, so British pensioners living there receive the same annual increases as those living in the UK.
How many pensioners are affected by the frozen pensions policy?
According to the End Frozen Pensions campaign, approximately 453,000 British pensioners living abroad are currently affected by this policy.
