Australia condemns the UK's failure to protect overseas payments

A new UK report reveals the Australian Government has been pushing for years for the UK to end an unjust policy that sees UK pensioners based in Australia denied their full UK state pension.

Damning evidence submitted to the UK All-Party Parliamentary Group (APPG) on Frozen British Pensions by the Australian Government reveals calls for the UK to provide full pensions to the 230,000 UK state pensioners resident in Australia to reciprocate the support the Australian Government offers its pensioners living in the UK.

This new evidence was submitted to the APPG’s inquiry into the UK policy denying annual increases to the UK state pensions of UK pensioners living in countries without a reciprocal uprating agreement with the UK, including Australia. This results in the UK state pension of these pensioners becoming ‘frozen’ and falling in real value year-on-year.

Evidence submitted by the Government of Australia says it “has been working to resolve this issue for some time, given the policy affects many expatriate pensioners living in Australia”, “has made a series of representations to the UK Government in recent years, including at Ministerial level” and “will continue to advocate [its] position to the UK Government.”

The Government makes the argument that Australia indexes its Age Pension for all its pensioners, regardless of where they live, including the UK. The report also reveals that Australia is subsidising UK pensioners living in Australia to protect them from poverty. The Government refers to this saying the ‘frozen’ pension policy “places an additional cost on Australia’s taxpayer-funded system, which supplements these pensions through the means-tested Age Pension.”

The report by the All-Party Parliamentary Group on Frozen British Pensions also explores the financial impact of the policy on UK pensioners overseas, finding 1 in 2 ‘frozen’ pensioners are receiving £65 per week or less and over half struggle financially because of their frozen pension. In particular, the APPG express concern for the impact of this policy on UK veterans, former public servants and members of the Windrush Generation who have returned to their country of birth.

The APPG finds that the ‘frozen’ pension policy is illogical, unfair and causes significant distress. It recommends that the UK Government end the policy and seek to provide UK pensioners living in ‘frozen’ countries with their full uprated UK state pension as soon as possible.

Patrick Edwards, President of the British Pensions in Australia said:  “This report is a damning indictment of the UK Government’s approach to its pensioners living in Australia. It is unacceptable that UK pensioners are plunged into poverty by this immoral policy and the Australian Government is forced to subsidise the pensions of UK state pensioners that the UK Government refuses to pay.”

“British Pensions in Australia firmly support the recommendation of the Rt Hon Sir Roger Gale MP and the All-Party Parliamentary Group on Frozen British Pensions for the UK Government to end this cruel policy.”

The full APPG report can be viewed here.