The Department for Work and Pensions (DWP) has turned down the opportunity to strike a deal with Canada on increasing state pensions for British expats in the country.
The decision follows a meeting between the department and representatives of the Canadian government to negotiate a reciprocal social security agreement.
At the end of 2020, International Adviser reported that both the Canadian and Australian governments wrote to the UK demanding an end to the frozen pensions regime.
A state pension is ‘frozen’ when a UK retiree moves to a country where the UK is not legally required to increase payments every year.
As a result, expats will receive their state pension at the rate available when they left the country, missing out on yearly increases.
A spokesperson for the DWP told IA: “We understand that people move abroad for many reasons and that this can impact on their finances. There is information on gov.uk about what the effect of going abroad will be on entitlement to the UK state pension.
“The government’s policy on the uprating of the UK state pension for recipients living overseas is a longstanding one of more than 70 years, and we continue to uprate state pensions overseas where there is a legal requirement to do so.”
‘Callous’ and ‘disgraceful’
Activist organisation End Frozen Pensions wrote on social media: “Hugely disappointing that the DWP gave refused to negotiate a pensions deal with Canada. This is a staggering betrayal of UK pensioners and of British values.”
A spokesperson for the campaign added: “That the government have rejected the Canadian government’s request out of hand is a staggering betrayal of the 150,000 UK pensioners living in Canada and for all 500,000 frozen pensioners.
“This callous rejection confirms that not all pensioners are viewed equally by the UK government and that they are happy to wash their hands of those who served this country, including during World War Two, simply based on where they chose to retire.
“For years, the government have used the tried and tired excuse of needing a reciprocal agreement for pensions, only to turn their backs on the opportunity to negotiate one with one of our closest and most important allies.
“By their actions, the government have confirmed that there are two types of UK pensioners, a situation that is callous, disgraceful and morally wrong and they must reconsider this and end the scandal of frozen pensions once and for all.”
