Beginning in April 2024, the state pension will rise by 8.5% in accordance with the triple lock’s earnings component, but hundreds of thousands of individuals would lose out.
Pensioners who live in certain “frozen” countries will not receive any rise at all, while those who receive the full new state pension will receive an extra £900 over the course of the fiscal year.
The campaign organisation End Frozen Pensions claims that half a million seniors are affected by the state pension, which only increases in some nations.
The state pension will increase to the current rate for the duration of their return to the UK.
Where does UK state pension increase?
The state pension only rises each year if the recipient lives in:
- The European Economic Area (EEA)
- Gibraltar
- Switzerland
- Countries that have a social security agreement with the UK (but people cannot get increases in Canada or New Zealand).
A person will not receive the annual raises if they reside outside of these countries.
Among those impacted by the ‘frozen pensions’ policy is 98-year-old Anne Puckridge, a veteran of the Second World War.
She paid her full National Insurance over her 76 years of employment in the UK.
The state pension of Ms. Puckridge, who relocated from the UK to be near her daughter and grandchildren who reside in Canada, has been fixed at £72.50 a week.
If she were a UK resident, the weekly amount would be £156.20.
It means her income falls in real value year-on-year as inflation bites.
A Government spokesperson 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.”
How much will the state pension be from April 2024?
A person’s state pension amount is determined by their National Insurance record’s qualifying years and whether they qualify for the new or basic state pension.
Beginning in April 2024, the entire new state pension, which is presently £203.85 a week, will rise to £221.20. This equates to an additional £17.35 a week, or £902.20 annually.
The weekly basic state pension will increase to £169.50 next year from its current £156.20.
It is a weekly gain of £13.30, or £691.60 annually.