Skip to main content

Pensions: Retirement Abroad

Volume 694: debated on Thursday 26 July 2007

asked Her Majesty’s Government:

What would be the cost of abolishing the frozen pensions regulations for United Kingdom citizens who have retired to the Falkland Islands and Dependencies; and [HL4934]

Whether they will abolish the frozen pensions regulations for United Kingdom citizens who have retired to the Falkland Islands and Dependencies; and what would be (a) the economic, and (b) the political implications of abolishing the regulations. [HL4935]

We have no plans to change the arrangements to uprate state pension for recipients residing in the Falkland Islands and Dependencies. It would not be appropriate to single them out and be faced with the possibility of a legal challenge for adopting different uprating policies in countries where the pension is currently frozen.

The sample of data relating to pensioners in the Falkland Islands and Dependencies is too small to make an accurate assessment of the cost of unfreezing their entitlement. However, the current estimate is that it would cost around £440 million in 2007-08 to bring all frozen-rate pensions up to the current rate, and this would be an ongoing cost increasing year on year.

Data Source: September 2006 administrative data, 5 per cent sample.

asked Her Majesty’s Government:

When they last received representations from the Government of Canada concerning the frozen pensions regulations for United Kingdom citizens who have retired to Canada; and what was the response to those representations. [HL5002]

We have had no representations from the Canadian Government about the regulations concerning frozen pensions.

asked Her Majesty’s Government:

What was the outcome of the three meetings held recently with Australian Ministers and officials at which the issue of not uprating the United Kingdom state pension paid to persons living in Australia was raised. [HL5003]

The outcome of the meetings was that the Government reiterated their policy on exporting and uprating the UK state pension and noted the concerns raised.