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Expats lose pension freeze case | |
(about 3 hours later) | |
More than half a million UK pensioners living overseas will continue to have their pensions frozen after a European court decision. | |
Pensioners who moved to countries such as Australia and Canada only receive the level of pension paid at retirement - which might be only £6 per week. | Pensioners who moved to countries such as Australia and Canada only receive the level of pension paid at retirement - which might be only £6 per week. |
The European Court of Human Rights rejected an appeal from a group of pensioners by an 11 to 6 majority. | |
The group wanted to receive increases in line with inflation. | |
The decision has saved the government at least £500m a year. | |
The expatriate pensioners say they have been fighting "tooth and nail" against the UK government in an eight-year court battle. | The expatriate pensioners say they have been fighting "tooth and nail" against the UK government in an eight-year court battle. |
Pensioners who have moved abroad want their UK state pensions to rise in line with inflation each year. | |
Inflation-proofing only applies to UK pensioners who live in the European Economic Area or in 15 other countries, but not in some Commonwealth states. | |
Entitlement | |
John Markham, a pensioner living in Canada, said: "There is an image of people living well in the sunshine - but there are plenty of cases of real hardship." | |
He said the decision was the end of the legal road, but they wanted to take the case to the "court of public opinion". | |
He told the BBC News website that they would take 48 hours to consider the decision. | |
The campaigners argue that they paid into the pensions system when they were working and are entitled to the same benefits as those who remained in the UK. | The campaigners argue that they paid into the pensions system when they were working and are entitled to the same benefits as those who remained in the UK. |
For the oldest overseas pensioners, who retired in the early 1970s, the pension can be as low as £6 a week. Those who retired in the early 1980s are left on about £30 a week, and those who retired in the early 1990s get about £50 a week. | |
The current basic state pension is £95.25 a week. | |
'First priority' | |
There are more than a million UK pensioners living overseas - with about half of them affected by the pensions freeze. | |
If pensioners have moved to countries with a reciprocal arrangement - such as in the European Union or the United States - then they receive pension increases. | If pensioners have moved to countries with a reciprocal arrangement - such as in the European Union or the United States - then they receive pension increases. |
But if pensioners have emigrated to countries without any such agreement - such as Australia, Canada and South Africa - their pensions have been frozen at the level of when they moved overseas. | But if pensioners have emigrated to countries without any such agreement - such as Australia, Canada and South Africa - their pensions have been frozen at the level of when they moved overseas. |
The Department for Work and Pensions has said the department's first responsibility is to support pensioners in the UK. | |
"The government's priority is to help the least well-off pensioners living in this country and it will continue to help them so that they are able to have a decent income in retirement," said a DWP spokesman. | "The government's priority is to help the least well-off pensioners living in this country and it will continue to help them so that they are able to have a decent income in retirement," said a DWP spokesman. |
The department also said that pensioners who chose to move to a country without a reciprocal pensions arrangement would have been aware of what it would mean for their state pension. | The department also said that pensioners who chose to move to a country without a reciprocal pensions arrangement would have been aware of what it would mean for their state pension. |