State Pension boost won’t reach 453,000 Brits this month | Personal Finance | Finance

April 13, 2025 4,161

For the last 24 years, Anne, a centenarian Second World War veteran who served in all three armed forces, has been receiving a State Pension of merely £72.50 per week – less than half the £176.45 she would have been entitled to in April 2024 had she not left the UK at the age of 76 after working her entire life in the UK.

Many pensioners are grappling with scanty incomes, as campaigners point out that half receive £65 a week or less, with some receiving as little as £20.

John Duguid, Chair of End Frozen Pensions International, called for more action: “Simply more needs to be done to address the ‘frozen’ pensions policy in diplomatic settings, and the election of Mark Carney as Canada’s Prime Minister paints the perfect opportunity to do so.”

Mr Duguid further stressed the practical benefits of changing the policy: “The current political appetite surrounding trade and negotiations further reinforces the point that the cost to unfreeze pensions is extremely modest and will be an essential lifeline to many affected pensioners who are struggling to make ends meet.”

Campaigners representing nearly 500,000 overseas state pensioners are hopeful that the recent election of Mark Carney as Canada’s Prime Minister will help abolish the controversial ‘frozen pensions policy’.

Around 453,000 pensioners live in countries without a reciprocal agreement with the UK Government, meaning they do not receive the annual State Pension increase. Following the 4.1 per cent rise on April 7, the full New State Pension will be worth £921 monthly during the 2025/26 financial year, while the full Basic State Pension is valued at £705.80.

Mr Carney, who has spent several years working in the UK, including a notable stint as the Governor of the Bank of England, is likely to qualify for a UK State Pension despite moving back to Canada, according to the End Frozen Pensions Campaign.

However, like over 100,000 ex-pats living in Canada who receive the State Pension, it could be frozen at the level it is when he first claims it.

Campaigners argue that this is due to the UK Government’s long-standing policy, which sees hundreds of thousands of UK State Pensioners miss out on the annual payment increase because they have retired overseas to certain countries.

The policy mainly affects Commonwealth countries, such as Canada and Australia, while retirees living in the USA or EU countries are eligible for the same State Pension considerations as if they had remained in the UK.

Edwina Melville-Grey, Chair of End Frozen Pensions Canada, remarked: “We don’t imagine for a moment that Mr Carney will be reliant on whatever UK State Pension he might be entitled to. However, we know for sure that many thousands of the UK State Pensioners living in affected countries, including those in Canada, see their UK State Pension as a vital lifeline helping them through arduous times.

“We are aware that he is currently facing numerous significant challenges and we wish him success in addressing these. However, we hope that when the time is appropriate, he will meet with our lead campaigner on this issue, 100-year-old Anne Puckridge. Her situation epitomises the injustice of this scandal.”

In December 2024, Anne journeyed to the UK to lobby the Government, seeking a meeting with Prime Minister Sir Keir Starmer regarding the issue. However, her request was declined.

The International Consortium of British Pensioners (ICBP), which champions the cause of about 453,000 expats affected by ‘frozen pensions’, spearheads the ‘End Frozen Pensions’ campaign. Their initiative aims to “end the injustice” suffered by British nationals overseas who do not benefit from the yearly State Pension Triple Lock increase every April.

According to research by the Canadian Alliance of British Pensioners, the recently instated Labour Government could bring all these frozen State Pensions in line with present-day rates for a mere £50 million. The study asserts that the disbursements towards countries with frozen pensions amount to a paltry 1.3 percent of the UK Government’s total annual expenditure.

For additional information on the End Frozen Pensions Campaign, one can visit their official website.

State Pension payments 2025/26

The Department for Work and Pensions (DWP) has released the complete list of updated State Pension and benefit payments on GOV.UK. This includes additional elements such as deferred rates, which are set to increase by 1.7 per cent, in line with the September Consumer Price Index inflation rate.

Full New State Pension