Pensions: Expatriates

Debate between Roger Gale and Torsten Bell

Tuesday 20th May 2025 Westminster Hall

[Torsten Bell]

I recognise the point that the hon. Member is making. I offer a few reflections on that. Some countries already do provide uprating for their pensioners based in the UK, so some of that is already in place, although it does vary across countries. It is, obviously, always for countries to set in place their own social security system. That is why the Australian system, for example, provides means-testing of the state pension, or elements of means-testing of their state pension. I suspect most people—with the possible exception of the Leader of the Opposition on occasion—do not support means-testing of the state pension.

I come on to the other point made by the hon. Member in the debate, which was to call for new reciprocal arrangements to put in place more widespread uprating. As I have explained, that would require significant tax rises. There is no way around that. The issue she raised would not negate that effect.

It is worth putting ourselves in other’s shoes. Why did the Liberal Democrat Pensions Minister for five years not change the policy on this issue? It was because he recognised the costs involved, and that it would involve tax rises. It is worth us reflecting on why the situation is not as some people would like.

[Sir Roger Gale]

Does the Minister consider that it is morally acceptable for Canada to uprate the pensions of its citizens in this country and to also bear the cost of this country not uprating its pensions for UK expats in Canada when Canada has formally offered to enter into a reciprocal arrangement? Why is that offer not being accepted?

[Torsten Bell]

Canada is a close ally of this country. We talk about that a lot in the current climate, for a whole host of reasons, and that is not going to change.

The right hon. Member is correct that Canada has made requests for a formal reciprocal arrangement, but the UK Government’s position—and that, again, of all parties—is that we are not in the business of new reciprocal arrangements with any countries. The only recent agreements have been the roll-over agreements with the EU and the EEA by the previous Conservative Government, but that was to maintain the existing social security arrangements, not to put in place any new reciprocal arrangements over that time.

I fully recognise the case that many hon. and right hon. Members have made today. I see the ongoing campaigning that those Members have put in place and that of many pensioners who are affected, but as I have said, the policy on uprating pensions is a long-standing one. More importantly, changing it involves real costs and trade-offs.

I gently note—very gently, so that I get out of this room safely—that many of the people calling for pensions to be uprated are also calling for reverses to the winter fuel payment policy and compensation for WASPI women, but are not calling for less investment in the NHS or higher taxes. In the current financial climate, there are real choices, and there have been no suggestions in this debate about how any of these policies would be funded.

I fully recognise the issues raised by Members today. I hope that I have explained why that recognition sits alongside the long-standing policy in this area, and I look forward to hearing the closing remarks from the hon. Member for Farnham and Bordon.

Winter Fuel Payment

Debate between Roger Gale and Torsten Bell

Wednesday 19th March 2025 Commons Chamber

[Torsten Bell]

No. Apparently, means-testing the winter fuel payment is beyond the pale, but means-testing the state pension—the bedrock of pensioners’ incomes—is the future. The Leader of the Opposition’s self-image is of a bold iconoclast, but means-testing the state pension is not bold; it is bonkers. Never mind what the Conservatives say they would do now, what about what they actually did? Let’s talk about pensioner poverty.

[Sir Roger Gale]

Will the Minister give way?

[Torsten Bell]

I will not. Pensioner poverty halved under the last Labour Government, but the Conservatives’ record was higher pensioner poverty—an increase of 300,000 people on their watch. We are not pretending that all the problems facing the country can be solved overnight, but we are honest that unless we tackle the big challenges and take some tough choices, they will not be solved at all. This is a Government raising the state pension, rescuing the NHS and delivering for pensioners every single day.