Pensions: Expatriates

Gregory Campbell Excerpts

Tuesday 20th May 2025 Westminster Hall

[Gregory Stafford (Farnham and Bordon) (Con)]

I beg to move,

That this House has considered pensions for people living overseas.

I thank the Backbench Business Committee for allowing this debate. It is a pleasure to serve under your chairmanship, Mr Dowd. For over 70 years, successive Governments have upheld the frozen pension policy. The result on those impacted has been not only a severe financial toll, but a heavy emotional burden. These individuals built their lives and careers in the United Kingdom, contributed their share through national insurance, and then, often later in life, moved abroad, in many cases to join family members. In doing so, they found themselves victims of an outdated policy. Most of them first became aware of the policy only after noticing that their state pension was not increasing in line with policies such as the triple lock, proudly founded by the Conservatives.

Let me be clear about what the frozen pension policy entails: British citizens who retire in certain countries—for example, Canada, Australia, New Zealand, and most of the Commonwealth, in fact—are denied the annual inflationary increases to their state pension. A person retiring to the USA sees their pension uprated yearly, but if they cross the border into Canada, those increases stop. That can result in elderly pensioners receiving as little as £60 a week on average, despite the current basic state pension being £176.45 a week. As many as four in 10 frozen pensioners report struggling to afford most necessities such as food or medicine.

It may be tempting to dismiss this as a problem “over there”, but British overseas pensioners are citizens who have lived, worked and grown up here. They remain citizens here; they are constituents, and, with the changes to overseas voting rules in 2024, many are now registered to vote in United Kingdom elections again. That means there are up to half a million voices who feel forgotten, neglected and increasingly betrayed by successive Governments.

Geography should not be an excuse for a lack of morality. British overseas pensioners are making their voices heard; over 75% want their representative to commit to ending frozen pensions. In 2016, at an all-party roundtable event, the now Deputy Prime Minister called for a change on frozen pensions and a commitment to finding a solution. I am glad she did so then; I am concerned that the Government are not doing so now. I would be grateful if the Minister could confirm whether that is still the position of the Deputy Prime Minister, and indeed, the Government.

Since I first raised the issue in the House of Commons last year, I have read and heard many compelling stories—for example, that of Anne Puckridge. Now 100 years old, Anne remains an inspiration to all of us, having served in the Royal Navy, the Army and the Royal Air Force during world war two—I repeat: the Royal Navy, the Army and the Royal Air Force—serving six months in each branch. It is fair to state that she has paid her dues to this country. After the war, she lived and worked for the vast majority of her life in the United Kingdom, until she moved to Canada in 2001. She is one of around 60,000 veterans affected by the policy.

The emotional impact of the policy cannot be overstated. Many of those affected say that they were never informed that their pension would be frozen when they moved. Anne was not told, and the campaign reports that 86% of pensioners affected had no idea the policy even existed before they were impacted. That is too little, too late.

[Mr Gregory Campbell (East Londonderry) (DUP)]

I congratulate the hon. Member on this timely debate. He just referred to a 100-year-old. Does he agree that the frozen pension issue is not just about the fact that people are seeing a relatively small pension compared with the one they would have had if they were still a UK resident? Because of the policy, in their final years of existence on this earth, they will have a paltry pension to pass away on.

[Gregory Stafford]

I entirely agree with the hon. Member, and I will come on to some of that later. He is absolutely right that there is not just a severe financial impact, but a moral impact. Constituents of ours, who have paid their dues—and, in Anne’s case, more than paid their dues given what they have done for this country—will end their days on pretty much nothing when inflation is taken into account.

Last December, I challenged the Prime Minister during Prime Minister’s questions on his decision not to meet Anne during her visit to the UK—a visit that required an 8,500 mile round trip, which is no mean feat at the age of 99. She was not offered a meeting with the Prime Minister.

Anne’s story is sadly emblematic of a much wider injustice that continues to be perpetrated on our elderly. Only this year, we saw continued poor treatment through policies such as the removal of the winter fuel payment and the betrayal of the WASPI women, both causes that were vociferously supported by the Labour party in opposition. Labour is happy to freeze pensioners and happy to freeze their pensions.

The Prime Minister’s refusal to meet Anne is symbolic of a Government who are, I regret to say, unwilling to listen to some of the most elderly and vulnerable among us. That brings me to the crux of today’s debate: the Government do not seem willing to engage in any meaningful way with the overseas electorate affected by the policy. I remind hon. Members that 158 parliamentarians from across the UK and Canada wrote to the Government last October calling for an end to the policy, and more than 140,000 people signed Anne’s petition to meet the Prime Minister in December.

The most concerning aspect of the Government’s current line of response is the estimated cost of ending the policy altogether. Based on calculations made annually, the Government quote the figure of £950 million a year to uprate and backdate all pensions, but that is not the ask. The End Frozen Pensions campaign has made it abundantly clear that it is not calling for retrospective compensation. It is asking simply to receive the same annual increases going forward that are awarded to pensioners living here, and in the USA, France and a host of other countries.

The cost of such a policy change is a mere £55 million a year—a fraction of the overall pensions budget. Will the Minister agree to meet the End Frozen Pensions campaign to accurately assess the cost of what is being requested by pensioners? Will he work with us, in good faith, to find a solution that reflects the modest and realistic nature of the appeal?

Beyond the severe individual hardships, there are important and growing geopolitical consequences to the point where the policy is now creating serious diplomatic tensions with some of our closest allies, as pensions are frozen in 50 out of the 56 Commonwealth nations. How can we speak proudly of our Commonwealth partnerships while refusing full pensions to veterans in the Falkland Islands, British-born nurses in Barbados or former civil servants in Canada? Those are countries with deep and historical ties to the UK, yet they are forced to subsidise our negligence.

Australia and Canada have made their frustrations clear. Canada has been formally requesting a resolution to the issue for more than 40 years. In October, 103 Canadian parliamentarians wrote to the Prime Minister urging him to address the issue. The Canadian and Australian Governments already provide full state pension increases to their citizens living in the UK. Meanwhile, they are left picking up the tab for British citizens residing in their countries.

With Canada and Australia having just held national elections, and with new trade discussions likely on the horizon, what assessment has the Minister made of the policy’s impact on our future ability to trade and meaningfully engage with those countries? Will he look at how reciprocal barriers to the policy may be overcome?

As I draw to a close, let me return to the heart of the matter. The policy causes financial hardship for a large number of affected elderly people. It also causes indignity and isolation; their repeated dismissal by the Government is leading to their political disenfranchisement. Putting an end to this blatant injustice is not only achievable but affordable—£55 million a year is not beyond our means. What is ultimately lacking is not money, but political will.

I have one practical ask of the Minister: will he meet campaigners to more fully understand their demands? If not to resolve the issue outright, will he at least commit to acknowledge the request for uprating on a going-forward basis only? Will he agree to work with me and campaigners to explore how, at a minimum, awareness of the policy might be improved, given the vast majority of impacted pensioners still report having no knowledge of the policy’s existence prior to moving overseas? All that those pensioners are asking for is a level playing field, so that those who have contributed can live out their retirement with dignity and security.