Pensions: British Citizens Overseas

Debate between Baroness Altmann and Baroness Benjamin

Wednesday 24th February 2016 Lords Chamber

[Baroness Benjamin]

To ask Her Majesty’s Government what assessment they have made of the impact of the frozen pensions policy on the choices of people who would like to move abroad or stay overseas during their retirement years.

[The Minister of State, Department for Work and Pensions (Baroness Altmann) (Con)]

My Lords, the Government have a clear position which has remained consistent for around 70 years: UK state pensions are payable worldwide and uprated abroad only where we have a legal requirement to do so. The Government have made no assessment of the impact of this policy on pensioners’ choices of residence.

[Baroness Benjamin (LD)]

My Lords, I thank the Minister for that Answer. Last November, the right honourable Oliver Letwin met with an international consortium of British pensioners and the chair of the All-Party Group on Frozen British Pensions and he committed that the Government would examine the case for partial uprating by commissioning cross-departmental research into the likely costs and savings—which was great news. Will the Minister please give an update on that work? Will we see the outcome before the Government bring in partial uprating regulations that freeze overseas pensions yet again for another year, continuing this injustice?

[Baroness Altmann]

My Lords, the Department for Work and Pensions has not made any estimates of the costs of this uprating. External sources have suggested that the costs of partial uprating are estimated at around £200 million a year by 2020.