State pension chaos as 500k people denied increases worth £470 a year

The Department for Work and Pensions (DWP) has come under fire for its refusal to amend a long-standing policy that has effectively denied around 500,000 British people living abroad the chance to benefit from what could amount to a significant cash increase in their state pension.

The latest figures indicate that these people are missing out on a potential £470 triple lock boost due to their residing in countries where pension payments are not uplifted.

DWP: hitting people claiming state pension abroad

Campaigners from the End Frozen Pensions Campaign are vocal in their criticism of the DWP state pension chaos, highlighting the financial strain imposed on British citizens who have dedicated their working lives to the UK, including a significant number of veterans and former civil servants:

Government inaction to address this issue is a longstanding failure to protect the UK’s most vulnerable citizens and has condemned many recipients of the UK state pension to live under harsh financial conditions.

The current policy means that DWP state pension payments for expatriates are ‘frozen’ at the amount they first received when they either left the UK or became eligible for their pension.

This freeze results in decreased purchasing power over time, as inflation steadily erodes the value of their income, leaving many struggling to afford essential needs.

Alarmingly, a recent survey conducted by the End Frozen Pensions Campaign revealed that nearly 40% of those affected have had to make drastic cuts to necessities such as food and medication. Furthermore, more than half (51%) reported serious financial stress attributable to the frozen state pension policy.

Proponents of the campaign are adamant that the current approach is a ‘political choice’ rather than an unchangeable circumstance. They assert that it could be reversed through straightforward legislative action here in the UK.

Despite this, the DWP’s stance remains unwavering.

‘It’s just how it is’

In a statement, the department remarked:

The policy on the uprating of UK state pension paid overseas is a longstanding one. UK state pension are payable worldwide, without regard to nationality, and are only uprated abroad where there is a legal requirement to do so – for example in countries with which we have a reciprocal agreement that provides for up-rating.

Critics argue that the inaction from the DWP on the state pension reflects a troubling disregard for the needs of older people whose contributions were integral to shaping modern Britain. The financial hardships faced by them are compounded by rising living costs, making their plight more dire than ever.

As the debate continues, many older people and their advocates are left feeling abandoned. They assert that it is unjust for their retirement income to be dictated by the geographical location of their residence rather than their lifetime contributions to the UK economy.

The hopes of those campaigning for an end to the frozen state pension policy hinge on the ability to convince the DWP to reevaluate its approach, and ultimately prioritise the financial well-being of its expatriate citizens.

State pension scandal: a microcosm of a wider problem

The plight of these 500,000 older people exemplifies the broken DWP system, highlighting disparities. abuse, and systemic neglect that affect not only older people but many chronically ill and disabled people, too.

The call for change on the state pension echoes louder as advocates for fair treatment rally behind the very real struggles faced by these citizens, a situation that demands urgent reconsideration from those in power.

Featured image via the Canary