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Uk Pensioners In Canada: Proposed Convention

Volume 474: debated on Wednesday 7 May 1986

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asked Her Majesty's Government:What further consideration has been given to the development of a reciprocal agreement with Canada which would bring about pensions upratings for British pensioners living there.

The Parliamentary Under-Secretary of State, Department of Health and Social Security
(Baroness Trumpington)

The Government have accepted the case in principle for a social security convention with Canada which would include uprating United Kingdom pensions payable to pensioners in Canada.Officials of the department and of the Canadian Department of Health and Welfare have work on hand on the preparatory technical matters. Such a convention, however, would involve extra expenditure for the United Kingdom to which we cannot at present be committed. Consequently we cannot say when we shall be able to reach final agreement.

asked Her Majesty's Government:What is the current estimate of the cost of implementing a reciprocal agreement on pensions uprating for British pensioners resident in Canada which would not involve retrospective action.

The current cost of paying only those pension increases which became due after any social security convention with Canada came into effect is estimated at about £4·8 million in the first year. This estimate is based on the number of pensioners at the end of 1985 and current rates of benefit.

The cost would rise year by year until all pensioners in Canada were receiving the same rate of benefit as if they were living in the United Kingdom.