Lord Jones of Cheltenham – 2016 Parliamentary Question to the Department for Work and Pensions

The below Parliamentary question was asked by Lord Jones of Cheltenham on 2016-03-07.

To ask Her Majesty’s Government, further to the Written Answer by Baroness Altmann on 2 March (HL6343), why there is a difference within the Overseas Territories resulting in some people receiving uprating of their pensions while the pensions of others are frozen, and what would be the annual cost of unfreezing pensions for all those living in the Overseas Territories.

Baroness Altmann

The government has a clear position, which has remained constant for around 70 years: the UK State Pension is payable worldwide and is uprated abroad where we have a legal requirement to do so for example in the European Economic Area or in countries where there is a reciprocal agreement in place that allows for uprating. There are no plans to change this.

The annual additional cost of up-rating the state pensions of those recipients who are resident in the British Overseas Territories is estimated at approximately £1million in 2015/16.

Were this to occur, liabilities for pensioners who live in other countries and territories would also have to be met. The estimated cost of increasing pensions in those countries where they are not currently uprated would be over £0.5 billion a year. This would be financially unaffordable.