Nearly 500,000 Pensioners To Miss Out On State Pension Uprating – Here’s Why

In 2025, the UK’s State Pension is set to rise under the Triple Lock—which increases pensions annually by whichever is highest: average earnings growth, CPI inflation, or 2.5%. With current figures showing earnings growth around 5% and inflation at 3.6%, many pensioners in the UK stand to benefit.

However, nearly 500,000 pensioners living abroad in countries without reciprocal agreements will not receive this increase, despite having paid into the system for years. This article unpacks why this disparity exists, who is affected, and what it means for retirees overseas.

What Is the Triple Lock—And What to Expect in 2026/27?

The Triple Lock principle guarantees that the State Pension rises each year by whichever is highest among:

• Average earnings growth (currently ~5%)
• CPI inflation (currently ~3.6%)
• Or a minimum of 2.5%

With earnings growth likely to be the determining factor, pension payments in 2026/27 are expected to increase accordingly once official data is released in autumn and confirmed at the Budget.

Who Will Miss Out—and Why?

Group	Why They Miss the Uprate
Pensioners abroad in “frozen” countries	Their pensions remain frozen at the rate when they first claimed, with no annual uprating applied.
Pensioners in countries with agreements	Their pensions do increase annually under Triple Lock.
Total affected individuals	Approximately 492,000 – 500,000 pensioners abroad in frozen-rate countries are impacted.

Pensioners living in places like Canada, Australia, New Zealand, South Africa, India, and many Commonwealth nations fall into the frozen category.

Without reciprocal agreements, they do not benefit from the annual uprate enjoyed by residents in the UK or countries with arrangements like the USA, EU, and some Caribbean states.

Real-World Impact on Pensioners

Many frozen pensioners receive a fraction of the income they’d have gotten in the UK:

• Some receive just £30–£40 per week, compared to ~£176 weekly in the UK.
• Nearly half (49%) receive £65 or less weekly.
• Over time, this leads to financial hardship—one veteran living in Canada received £50,000 less over a lifetime of not having her pension uprated.

These disparities persist despite having paid full National Insurance contributions in the UK.

Campaigns & Controversy

Advocacy groups and retirees, including Veteran Anne Puckridge, have long campaigned to end this disparity. Their calls include:

• Online petitions signed by hundreds of thousands.
• Visits to Parliament and direct appeals to UK government officials.
• The message: these pensioners deserve the same uprate as those resident in the UK, especially as they paid the same contributions.

Despite these efforts, no new agreements have been struck, and the policy remains unchanged in 2025.

What Pensioners Abroad Can Do

• Check whether your country of residence is recognised for uprating—if not, your pension remains frozen.
• Understand that the policy is based solely on your location, not individual circumstances.
• Campaigners advise that the only recourse lies in efforts to change the law and international agreements—a long-term, challenging endeavour.

While the Triple Lock promises a meaningful uplift to UK retirees in 2025—potentially around 5%—nearly half a million pensioners abroad will see no increase, despite identical NI contributions. Their pensions are frozen, leading to significantly lower incomes and potential hardship.

Campaigners continue to press for reform, but until changes are made, these pensioners must live with the consequences of a policy that treats them differently based on residence, not merit.

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