Labour has refused to change the frozen state pension policy (Image: Getty)
Labour has flatly refused to change a policy that means hundreds of thousands of state pensioners do not get a yearly increase to their payments.
Payment rates increase each April in line with the , but more than 450,000 claimants miss out on the boost because of where they live.
To get the yearly rise, you have to live in the UK, in a European Economic Area country, in Gibraltar or in Switzerland.
Some other countries have a social security agreement with the UK meaning pensioners living there also get the increase, but many other nations do not, including popular destinations for expats such as Canada and Australia.
One longtime campaigner affected by the issue is 99-year-old World War Two veteran Anne Puckridge. She moved to Canada in 2001 and is stuck on just £72.50 a week, well below the full basic of £169.50 a week.
She is visiting the UK to draw attention to the issue and Conservative MP Andrew Rosindell asked in Parliament if Labour would meet with her to discuss the problem.
Pensions minister, Emma Reynolds, said there are “no plans to hold discussions” with Ms Puckridge about the policy.
She then spelt out a three-word response to say that the current metric, which takes into account UK figures for inflation and earnings growth, has “no direct relevance” if a pensioner is living overseas.
The Labour minister also pointed out that the rules for uprating pensions for those living abroad are a “longstanding” policy with payments increased “where we have a legal requirement to do so, for example in countries with which we have a reciprocal agreement that provides for up-rating”.
Ms Reynolds also said that it’s a personal choice where you choose to live and if you opt to move abroad. She commented: “People move abroad for many reasons and this can have an impact on their finances.
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“However, the decision to move abroad is voluntary and remains a personal choice dependent on the circumstances of the individual.”
She also said that the Government has been proactive in warning people of how the policy works. Ms Reynolds stated: “For a number of years, advice has been provided to the public that the UK is not uprated overseas except where there is a legal requirement to do so.
“HM Revenue and Customs and the Department for Work and Pensions publish information on the Government website.”
With the 4.1 percent increase next April, the full basic will increase from £169.50 a week to £176.45 a week. The full new will rise from the current £221.20 a week to £230.30 a week.
However, many pensioners do not get these full amounts as they do not have enough National Insurance contributions. You typically need 30 years of contributions for the full basic and 35 years’ worth to get the full new amount.