If the government follows through on its triple lock vow, pensioners would receive an inflation-beating salary increase of 8.5% next year.
According to the End Frozen Pensions campaign, about 500,000 seniors would not benefit from the increase due to where they live.
This is owing to a historic regulation that means those who live outside of the European Economic Area (EEA), Gibraltar, Switzerland, and nations having a social security agreement with the UK do not receive annual increases – but persons in Canada and New Zealand do.
If they return to the UK, their state pension will be increased to the current rate.
Sheila Telford, chair of the International Consortium of British Pensioners said, “As the rising cost of living continues to bite, this proposed increase in the state pension will be welcomed by British pensioners.”
“However, the four per cent of British pensioners living in countries excluded from this increase can only watch as they are denied this same support, having already lost out on the 10.1 per cent increase earlier this year.
“Instead, the Government has washed their hands of them, leaving many to survive off a meagre UK state pension, which for some British pensioners has been frozen for over 30 years, never increasing. There is no justification for the suffering this postcode lottery has created over the decades.
“If the UK Government had an ounce of compassion for the British pensioners unfairly impacted by this policy, it would include them in next year’s uprating and begin the process of ending this injustice.”
A Government spokesperson previously said: “Our priority is ensuring every pensioner receives the financial support to which they are entitled.
“We understand that people move abroad for many reasons and we provide clear information about how this can impact on their finances.
“The Government’s policy on the uprating of the UK state pension for recipients living overseas is a longstanding one of more than 70 years and we continue to uprate state pensions overseas where there is a legal requirement to do so.”
What may the UK state pension be worth in 2024?
If the 8.5 percent increase is implemented, the complete new state pension will increase by about £17.35 per week, from £203.85 to £221.20.
This would amount to a £902.20 annual increase for persons receiving the full new state pension.
The whole basic state pension would rise from £156.20 to £169.50 per week. This equates to a £691.60 annual increase.