Bishop of Southwark asks about state pensions for British Nationals abroad

The Bishop of Southwark received the following written answers on 30th March 2023:

The Lord Bishop of Southwark asked His Majesty’s Government:

  • what stage they have reached in negotiations with (1) the government of Canada, (2) the government of Australia, and (3) the government of New Zealand, on the annual uprating and payment of the UK state pension to beneficiaries resident in those countries.
  •  what representations they have received from, or on behalf of the governments of (1) Canada, (2) Australia, and (3) New Zealand, in the past 12 months on the subject of UK state pensions paid to individuals resident in their territories, and their annual uprating in line with those paid in the United Kingdom; and what representations have they received from non-governmental groups on the same subject.

Viscount Younger of Leckie: The government does not have a policy to increase the number of countries with which the UK has reciprocal agreements on state pensions. The government has no plans to change its social security relationship with these countries on state pensions.

Requests for social security agreements may be raised in formal and informal meetings and in correspondence at both ministerial and official level. The Department for Work and Pensions does not, as a matter of routine, maintain full records of such requests. The department can, however, confirm that a response was provided to the government of Canada in August 2022 on its request to conclude a reciprocal agreement to include state pension uprating, where the department outlined its longstanding position as stated above.

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The Lord Bishop of Southwark asked His Majesty’s Government what research they have undertaken of the impact of their decision not to uprate the UK state pension upon (1) British citizens resident in Canada, Australia, and New Zealand, and (2) Commonwealth citizens who have retired to a country in the Caribbean with a UK state pension entitlement.

Viscount Younger of Leckie: The Department has not undertaken such research. The UK State Pension is payable worldwide to those who meet the qualifying conditions. Entitlement is based on an individual’s national insurance record. The policy on up-rating UK State Pensions overseas is long-standing and has been supported by successive post-war Governments for over 70 years. We continue to up-rate UK State Pensions abroad where there is a legal requirement to do so – for example where there is a reciprocal agreement that provides for up-rating. There are no plans to change this policy.

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The Lord Bishop of Southwark asked His Majesty’s Government whether they plan to annually uprate the UK basic state pension to qualifying individuals on the same basis regardless of the state or territory in which they are currently resident; and what reciprocal agreements they have made, if any, with other countries in respect of pension uprating.

Viscount Younger of Leckie: UK State Pensions are payable worldwide and up-rated overseas where there is a legal requirement to do so – for example where there is a reciprocal agreement in place that allows for up-rating. The policy on up-rating is longstanding and has been supported by successive Governments for over 70 years. The Government has no plans to change this policy.

The UK has reciprocal social security agreements, which provide State Pension up-rating, with the following authorities:

  • Barbados
  • Bermuda
  • Bosnia-Herzegovina
  • Gibraltar
  • Guernsey
  • the Isle of Man
  • Israel
  • Jamaica
  • Jersey
  • Kosovo
  • Mauritius
  • Montenegro
  • North Macedonia
  • the Philippines
  • Serbia
  • Turkey
  • USA

The UK also has agreements in place with the European Economic Area and Switzerland which provide for State Pension up-rating.

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The Lord Bishop of Southwark asked His Majesty’s Government what estimate they have made of the annual cost of uprating the UK basic state pension to UK pensioners living abroad, regardless of any reciprocal agreements on pensions uprating.

Viscount Younger of Leckie: UK State Pensions are payable worldwide and up-rated overseas where there is a legal requirement to do so. The policy on up-rating UK State Pensions overseas is long-standing and has been supported by successive post-war Governments for over 70 years.

No recent assessment has been made of the annual cost of up-rating the UK basic State Pension to UK pensioners living abroad, regardless of any reciprocal agreements on pensions up-rating.

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