Andrew Rosindell – 2016 Parliamentary Question to the Department for Work and Pensions

The below Parliamentary question was asked by Andrew Rosindell on 2016-10-10.

To ask the Secretary of State for Work and Pensions, what estimate his Department has made of the financial cost of unfreezing UK-issued pensions in those British Overseas Territories where they are frozen.

Richard Harrington

The Government has a clear position, which has remained a consistent policy of successive Governments for around 70 years. UK State Pensions are payable worldwide and are uprated abroad where we have a legal requirement to do so; for example in the European Economic Area, or countries where we have a reciprocal agreement that allows for uprating, and so annual increases are paid to UK State Pension recipients in Gibraltar and in Bermuda. We have no plans to change this policy.

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.

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