The Women Against State Pension Inequality (WASPI) campaign continues to spotlight the financial hardships faced by 1950s-born women due to abrupt changes in the UK state pension age.
Recent developments have intensified concerns, especially for those who have retired abroad and are subjected to the UK’s ‘frozen’ pension policy.
Understanding the £4,800 Loss for Overseas Pensioners
Approximately 450,000 British pensioners residing overseas are affected by the UK’s ‘frozen’ pension policy, which means their state pension does not receive the annual increases applied to UK residents. This policy has led to significant financial disparities over time.
For instance, a 90-year-old pensioner who has lived in a ‘frozen’ country throughout retirement may still receive a weekly pension of just £64.70, compared to £156.20 if they had remained in the UK—a difference of £91.50 per week, amounting to an annual loss of approximately £4,758.
Similarly, a 72-year-old who began receiving their pension in a ‘frozen’ country in 2016 would receive £119.30 per week, whereas their UK-residing counterpart would get £203.85, resulting in a weekly shortfall of £84.55.
Impact of ‘Frozen’ Pensions Over Time
| Age | Weekly Pension (Frozen) | Weekly Pension (UK) | Weekly Loss | Annual Loss |
|---|---|---|---|---|
| 90 | £64.70 | £156.20 | £91.50 | £4,758 |
| 72 | £119.30 | £203.85 | £84.55 | £4,396.60 |
The WASPI Campaign and Compensation Efforts
The WASPI campaign seeks justice for women born in the 1950s who were adversely affected by changes to the state pension age, implemented with inadequate notice.
The Parliamentary and Health Service Ombudsman (PHSO) has recommended compensation payments of up to £2,950 for the lack of proper communication regarding these changes.
Despite these recommendations, the government has yet to implement a compensation scheme. The WASPI group continues to advocate for fair compensation, emphasizing the compounded financial losses for those also affected by the ‘frozen’ pension policy.
The ‘Frozen’ Pension Policy Explained
The UK’s ‘frozen’ pension policy affects pensioners residing in countries without a reciprocal social security agreement with the UK. As a result, their state pension remains at the rate first received, without annual increases. This policy impacts many Commonwealth countries, including Australia, Canada, and South Africa.
The End Frozen Pensions campaign highlights that overseas pensioners are effectively net savers for the UK, as they do not utilize UK public services like the NHS.
Advocates argue that the cost of uprating these pensions would be offset by the savings from reduced public service usage.
Political and Public Response
Members of Parliament across various parties have expressed support for addressing the injustices faced by WASPI women and overseas pensioners. Calls for the government to find reciprocal agreements with affected countries and to implement fair compensation schemes are growing louder.
However, the government cites financial constraints and the complexity of implementing such changes as reasons for the delay. The debate continues, with campaigners urging for immediate action to rectify these long-standing issues.
The financial challenges faced by WASPI women, particularly those living abroad with ‘frozen’ pensions, underscore the need for urgent government action.
Implementing fair compensation and reviewing the ‘frozen’ pension policy are critical steps toward rectifying these long-standing injustices. As the debate continues, the voices of affected pensioners and campaigners remain pivotal in driving change.
FAQs
What is the ‘frozen’ pension policy?
The ‘frozen’ pension policy refers to the UK’s practice of not applying annual increases to state pensions for retirees living in certain countries without a reciprocal agreement.
Who are the WASPI women?
WASPI women are those born in the 1950s who were adversely affected by changes to the state pension age, implemented with little or no notice, leading to financial hardship.
What compensation has been recommended for WASPI women?
The Parliamentary and Health Service Ombudsman has recommended compensation payments of up to £2,950 for affected women due to inadequate communication about pension age changes.