Starting April 2025, millions of UK pensioners will receive an increase in their state pension under the triple lock system, leading to an annual rise of up to £460. However, more than 450,000 pensioners living abroad will not benefit due to the frozen pension policy.
How the State Pension Increase Works
The UK state pension follows the triple lock guarantee, ensuring it rises each year based on the highest of:
- Inflation (measured in September of the previous year)
- Average wage growth (between May and July)
- A minimum of 2.5%
For April 2025, the government confirmed that pensions will increase based on wage growth, which was 4.1%.
How Much Will Pensioners Receive?
From April 6, 2025, pensioners in the UK will see their payments rise:
- Basic State Pension: £169.50 → £176.45 per week
- Full New State Pension: £221.20 → £230.25 per week
Annually, this means:
- Basic State Pension: £8,844 → £9,198 (£353 yearly increase)
- Full New State Pension: £11,502 → £11,975 (£461 yearly increase)
Why 450,000 Pensioners Won’t Get the Increase
While pensioners in the UK, European Economic Area (EEA), Switzerland, Gibraltar, and countries with a UK social security agreement will receive the increase, those in certain other countries will not.
Many popular retirement destinations, such as Canada, New Zealand, and parts of the Commonwealth, are excluded. As a result, British pensioners who move to these countries have their pensions frozen at the rate they were when they left the UK.
The Fight Against Frozen Pensions
The End Frozen Pensions campaign, which represents 453,000 British expats, is pushing for a change in this policy. The recent election of Mark Carney as Canada’s Prime Minister has renewed hopes that the issue might be raised at a diplomatic level.
Edwina Melville-Grey, Chairperson of End Frozen Pensions Canada, emphasized how unfair this policy is, noting that many UK pensioners abroad rely on their state pensions to survive.
Campaigners are hopeful that Mark Carney will meet with 100-year-old Anne Puckridge, their lead campaigner, to highlight the hardship faced by pensioners living with frozen pensions.
Will the Government Change Its Policy?
So far, the Department for Work and Pensions (DWP) has made it clear that frozen pension rules will continue, meaning that pensioners living in affected countries will not receive the annual increases. However, campaigners argue that the cost of unfreezing pensions is modest and could be an essential lifeline for struggling pensioners.
While UK-based pensioners will receive an increase of up to £460 per year under the triple lock policy, nearly half a million UK expats will miss out due to the frozen pension rules. As campaigners continue to fight for fair treatment, the election of Mark Carney as Canada’s Prime Minister presents a new opportunity to push for change at a diplomatic level.
FAQ’s
1. How much is the UK state pension increasing in 2025?
The basic state pension will rise from £169.50 to £176.45 per week, and the full new state pension will increase from £221.20 to £230.25 per week.
2. Why are some pensioners missing out on the increase?
Pensioners who live in countries without a UK social security agreement, like Canada and New Zealand, have their pensions frozen at the rate they were when they left the UK.
3. What is the triple lock system?
The triple lock guarantees that the state pension rises annually by the highest of inflation, wage growth, or 2.5%.
4. Can the UK government change the frozen pension policy?
While campaigners are pushing for a change, the UK government has consistently refused to update the policy, citing cost concerns.
5. How can pensioners challenge frozen pensions?
Groups like End Frozen Pensions are advocating for change and urging affected pensioners to raise the issue with MPs and campaign groups.
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