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Pensions (Overseas Residents)

Volume 301: debated on Wednesday 26 November 1997

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To ask the Secretary of State for Social Security what estimate she has made of the cost of uprating the pensions paid to those British citizens living overseas, whose pensions are not presently uprated. [16671]

We estimate that it would cost some £250 million' a year fully to unfreeze UK pensions paid to people living abroad, that is to bring them up to the rate which would be paid if the pensioners were living in the United Kingdom.

Notes:

1 Estimate rounded to the nearest £25 million. Based on the number of UK pensions paid abroad in July 1997 and on current pension rates.

1. The cost is calculated from the actual uprating cost of some 90 per cent. of all cases (£1,900 million) and an estimated uprating cost for the remainder, which date from 1978.

To ask the Secretary of State for Social Security in which countries special arrangements are made to uprate the state retirement pension for British citizens living abroad. [16673]

UK state retirement and widows pensions are uprated in the Member States of the European Economic Area1 and in the following countries with which the UK has a social security agreement which provides for uprating:

  • Barbados
  • Bermuda
  • Bosnia-Hercegovina
  • Croatia3
  • Cyprus
  • Guernsey
  • Isle of Man
  • Israel
  • Jamaica
  • Jersey
  • Macedonia3
  • Malta
  • Mauritius
  • Philippines
  • Slovenia3
  • Switzerland
  • Turkey
  • USA
  • Yugoslavia

Notes:

1 Comprises EC Member States plus Iceland, Norway and Liechtenstein.

2 Formerly a constituent republic of the Federal Republic of Yugoslavia (FRY). Annual pension increases payable by virtue of the 1958 reciprocal agreement with FRY.

3 Formerly a constituent republic of the Federal Republic of Yugoslavia (FRY). Annual pension increases payable by virtue of the 1958 reciprocal agreement with FRY.

Pensions are also uprated on Sark under the Social Security Benefit (Persons Abroad) Regulations 1975.

To ask the Secretary of State for Social Security what estimate she has made of the number of British citizens living aborad who do not receive uprated state retirement pensions. [16672]

There are some 440,000 UK retirement and widow pensioners living in countries where pensions are not uprated. No record is held of the number who are British citizens.