Fwd: Government responded to “Give U.K. pensioners living abroad increases with parity as those in the U.K.”

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Chris Hill

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May 11, 2022, 12:01:01 AMMay 11
to bapa...@googlegroups.com
Pretty sure you have all got this.
No change. Usual response.
Can't afford to uprate.
Except where legally obliged to.
There is even a suggestion that uprating would encourage emigration!
Seems that legal obligation comes when the host country insists as part of negotiations on a raft of reciprocal matters. Eg new trade agreement. 
Having dumped the biggest worldwide free trade agreement the UK government is forced to renegotiate country by country around the world.
Thus it is in the hands of all host countries to insist on reciprocal social security arrangements as well as visa agreements.
The UK government is at a considerable disadvantage in these negotiations as after Brexit they approach each host country cap in hand and try to reinvent the wheel. 
Little chance of my host Thailand understanding or acting on FPs as pensions are not by any means universal and the UK Embassy is merely a local trade body despite the British Chamber of Commerce in Thailand being far more effective. (BCCT arranged our vaccinations!)
However Australia Canada India South Africa and others who have enlightened pension regimes should understand that they have a unique opportunity to negotiate reciprocal agreements and legally enforce reciprocal pension and visa rights.
More power to the Host Countries!


---------- Forwarded message ---------
From: Petitions: UK Government and Parliament <no-r...@petition.parliament.uk>
Date: Wed, May 11, 2022, 08:43
Subject: Government responded to “Give U.K. pensioners living abroad increases with parity as those in the U.K.”
To: <christophe...@gmail.com>


 

You’re receiving this email because you signed this petition: “Give U.K. pensioners living abroad increases with parity as those in the U.K.”.

To unsubscribe from getting emails about this petition: https://petition.parliament.uk/signatures/125109883/unsubscribe?token=kRHYBeykmpYXjPKawGke


Dear Christopher Hill,

The Government has responded to the petition you signed – “Give U.K. pensioners living abroad increases with parity as those in the U.K.”.

Government responded:

There are no plans to change the policy. The Government continues to up-rate the State Pension where there is a legal requirement to do so.

The UK Government has no plans to change the current arrangements for payment of UK State Pension overseas.

The United Kingdom’s state pension system is primarily designed for the benefit of those who are resident in the UK. It is, however, payable worldwide and is uprated in the UK and also in countries abroad where there is a legal requirement to do so. This is a longstanding policy and has been implemented by successive Governments of all political persuasions for over 70 years. The policy has been the subject of Parliamentary debates over time and has been approved by Parliament and the Courts.

The rate of National Insurance contributions paid has never earned entitlement to the uprating of pensions payable abroad. This reflects the fact that the UK scheme is primarily designed for those living in the UK. The National Insurance scheme operates on a “pay-as-you-go” basis. Contributions paid into the National Insurance Fund in any year finance contributory benefit expenditure in the same year. A person’s contributions provide a foundation for calculating their future benefit entitlement but do not actually pay for those benefits.

UK expenditure on health care costs depends on where the UK pensioner settles. While the location may be decided by the pensioner, individual countries have their own immigration policies in relation to older economically inactive people. Paying uprating to UK pension recipients in countries where it is not currently paid would mean an immediate increase in costs.

There are now around 1.2 million UK State Pension recipients who are overseas residents and around 0.5 million of them do not receive increases. It would cost over £0.6bn extra a year to up-rate these pensions fully, that is to pay the pension at the rate that would be applicable if the pensioner had lived in the UK throughout. Paying future increases only would cost tens of millions in the short term but would lead to the cost of full uprating (£0.6bn) in the longer term as older pensioners died and new pensioners became entitled to fully up-rated state pensions.

Cost has always been a factor in deciding whether pension increases should be paid in overseas countries and successive governments have taken the view that it would be unfair to impose an additional burden on contributors and taxpayers in the UK to fund increased pensions for those who have chosen to live abroad. The Government concurs with that position. Ultimately, there is a choice for the individual to make where to live, and what the consequences are should that choice be somewhere other than the UK. The rules on uprating the State Pension are clear and well publicised. So the choice to migrate or not remains a choice for the individual. UK State Pensions paid to people living outside the UK also go to people who migrated for economic or other reasons well before they reached pension age.

Department for Work and Pensions

Click this link to view the response online:

https://petition.parliament.uk/petitions/601821?reveal_response=yes

The Petitions Committee will take a look at this petition and its response. They can press the government for action and gather evidence. If this petition reaches 100,000 signatures, the Committee will consider it for a debate.

The Committee is made up of 11 MPs, from political parties in government and in opposition. It is entirely independent of the Government. Find out more about the Committee: https://petition.parliament.uk/help#petitions-committee

Thanks,
The Petitions team
UK Government and Parliament


You’re receiving this email because you signed this petition: “Give U.K. pensioners living abroad increases with parity as those in the U.K.”.

To unsubscribe from getting emails about this petition: https://petition.parliament.uk/signatures/125109883/unsubscribe?token=kRHYBeykmpYXjPKawGke

 
   
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