Many women affected by the WASPI (Women Against State Pension Inequality) campaign are now facing more trouble, especially those who have chosen to retire outside the UK. Along with fighting for compensation from the Department for Work and Pensions (DWP), they are also dealing with something called the ‘frozen pensions’ policy, which is making their financial situation worse.
What Are Frozen Pensions?
In simple terms, if a UK pensioner moves to certain countries abroad, their state pension stops increasing every year. This is very different from what happens in the UK, where pensions go up annually to match inflation and cost of living.
About 450,000 British pensioners who live abroad — nearly half of all pensioners outside the UK — are affected by this frozen pension rule. That’s around 3.5% of everyone getting the State Pension. The UK government only increases pensions in countries where there is a specific agreement. In others, the pension amount stays the same as the day they first received it — even if they live for decades.
Real-Life Examples Show the Impact
Let’s look at two examples to understand this better.
A 90-year-old woman who retired abroad and has been living in a ‘frozen’ country all her retired life still receives only £64.70 per week. But if she had stayed in the UK, her pension would now be £156.20 per week. That’s a difference of £92 a week, or around £4,784 a year.
Another case is of a 72-year-old who retired in 2016 and also moved to a frozen country. She currently gets £119.30 per week, while she would be getting £203.85 per week if she had stayed in the UK.
WASPI Women Face Double Trouble
WASPI women, who already lost out when the government changed the pension age without giving them proper notice, are now suffering even more if they retired overseas. They are still waiting for a compensation of £2,950 recommended by the Ombudsman in 2023. On top of that, their frozen pensions make their retirement income much lower than it should be.
What Politicians Are Saying
Rachel Gilmour, a Liberal Democrat MP, said that everyone who worked hard for their pension should be able to access it fairly. She pointed out that your pension should not depend on where you live, and that the UK government should work on deals with more countries to avoid unfair treatment.
David Chadwick added that since many pensioners abroad still have voting rights, the UK might want to consider setting up overseas constituencies. That way, those living abroad could be properly represented in Parliament.
Sir Torsten Bell, Labour’s Pensions Minister, responded by saying that while he understands the problem, there needs to be a clear plan for funding these changes. He explained that without increasing taxes or reducing spending in other areas like the NHS, it’s hard to promise more money for frozen pensions or WASPI compensation.
What Needs to Happen Next?
It’s clear that many British pensioners, especially WASPI women living abroad, are being treated unfairly under current rules. They worked all their lives, paid into the system, and expected a full pension. But because of where they live now, they’re losing thousands of pounds every year.
The UK government is under pressure to change this outdated policy. Campaigners are calling for new agreements with more countries to make sure all pensioners get fair treatment, no matter where they live.
The frozen pension policy is causing serious problems for British pensioners overseas, especially for WASPI women already hit by earlier injustices. While the UK government claims budget constraints, many feel it’s time to fix this unfair rule. After all, a person’s retirement income should not depend on their postcode or country. The push to ‘End Frozen Pensions’ is not just about money — it’s about fairness and respect for those who worked their entire lives under the promise of a reliable pension.
FAQs
What are frozen pensions for UK retirees abroad?
Frozen pensions are pensions that do not increase yearly for UK retirees living in certain countries. These pensions stay fixed at the amount first received and do not rise with inflation, unlike pensions in the UK.
How many UK pensioners are affected by frozen pensions?
About 450,000 UK pensioners living overseas are affected. This is nearly half of all pensioners living abroad and around 3.5% of total UK State Pension recipients.
Why are WASPI women more severely impacted?
WASPI women are already waiting for DWP compensation due to changes in pension age. Those who live abroad face additional financial losses because their pensions don’t increase yearly, making their situation worse.
Can the UK government change the frozen pension policy?
Yes, but it would require agreements with more countries and budget adjustments. Politicians argue that changes must be funded either by raising taxes or cutting spending elsewhere.
How much can retirees lose annually due to frozen pensions?
Some pensioners can lose up to £4,784 each year compared to what they would receive if they had stayed in the UK, depending on how long they’ve been receiving a frozen pension.
