Around 453,000 UK State Pension recipients living overseas will not receive the annual payment increase next April, after the Government confirmed it has no plans to review the policy that freezes their pensions.
The Department for Work and Pensions (DWP) previously reported that about 453,000 people receiving the UK State Pension live in countries where their payments are not increased each year. This means they will not benefit from the next annual uprating in April 2027, despite having built up entitlement through National Insurance contributions.
Government Response to Parliamentary Question
The confirmation came in a written parliamentary response to Liberal Democrat MP Zöe Franklin, who asked whether the UK Government had assessed the effectiveness of the policy and whether it planned to extend annual uprating to pensioners living overseas.
Pensions minister Torsten Bell replied: "There are no plans to review the policy on uprating State Pensions for recipients resident overseas."
"This approach has been supported by successive governments over many years including the Liberal Democrats and Conservative coalition government, with priority given to those living in the UK when drawing up expenditure plans for additional pensioner benefits."
The response means hundreds of thousands of pensioners living in countries including Australia, Canada, New Zealand and South Africa will continue receiving payments frozen at the rate applicable when they first became entitled to their pension or moved abroad. However, pensioners living in the European Union and the United States receive annual increases under the existing rules.
April 2027 Payment Rates
The State Pension currently rises each April under the Triple Lock, which guarantees an annual rise based on the highest of inflation, average earnings growth or 2.5 per cent.
From April 2027, the full New State Pension is set to rise to £250.70 per week, equivalent to £13,036.40 annually, while the full Basic State Pension will increase to £192.10 per week, or £9,989.20 annually. However, pensioners affected by the frozen pensions policy will not receive these annual increases while they remain resident in countries where uprating does not apply.
The amount someone receives depends on their National Insurance contribution record, and not everyone qualifies for the full rate.
Campaign Against Frozen Pensions
The End Frozen Pensions Campaign has been calling for the policy to be abolished, arguing that people who contributed to the UK National Insurance system should not be treated differently because of where they choose to retire.
According to the campaign, more than 90 per cent of affected pensioners live in Commonwealth countries, including Australia, Canada, New Zealand and South Africa. Its research found that 51 per cent of pensioners surveyed had struggled financially because of the policy, while nearly four in 10 reported cutting back on essential items such as food and medicine. The campaign also reported that 46 per cent of respondents were working or had worked to supplement their income.
Unlike pensioners living in the UK, those affected do not receive annual increases to help protect the value of their State Pension against rising living costs. The campaign has previously highlighted the case of Second World War veteran Anne Puckridge, who travelled to Parliament at the age of 101 to call for the policy to be changed.
John Duguid, Chair of the End Frozen Pensions Campaign, previously criticised the continued exclusion of overseas pensioners from annual increases. Commenting on the April 2026 uprating, he said: "Once again, we are left out of sight, out of mind and out of pocket."
Claiming State Pension Abroad
People who have built up sufficient National Insurance contributions can claim their UK State Pension while living overseas, but whether they receive annual increases depends on their country of residence.
Payments are increased each year for pensioners living in the European Economic Area, Gibraltar, Switzerland and countries with relevant reciprocal social security agreements with the UK. However, some countries have agreements with the UK that do not provide for annual State Pension uprating.
People living in countries where increases do not apply will generally have their pension frozen at the rate payable when they first claim it or move there. Further information about claiming the State Pension abroad and the countries where annual increases apply is available on GOV.UK.
