Nearly half a million pensioners are set to miss out on a £470 increase in payments from April.
Chancellor Rachel Reeves announced in October that the government would be honouring the triple lock, resulting in pensions increasing by 4.1 per cent next month.
However, thousands of expat state pensioners will miss out on the boost to their payments due to the government’s ‘frozen pensions policy’.
The policy means that annual increases for pensioners in certain countries can be prevented.
In response to the news, the international health insurance experts at William Russell have revealed everything expats need to know about claiming a UK pension.
William Cooper, marketing director at the organisation, said: “Expats are eligible to claim a UK State Pension, provided they have accumulated sufficient qualifying years of National Insurance contributions.
“This varies depending on when you first started working, but a good rule of thumb for a full state pension means at least 35 years of paying National Insurance in the UK.
“The pension can be paid to you regardless of where you live, but it's crucial to understand how living abroad may affect the amount and any potential increases.
“If you reside in certain countries, typically those with a reciprocal social security agreement with the UK, your State Pension may still increase each year as it would if you were in the UK.
“However, in other countries, the pension may be 'frozen' at the rate it was first paid.
“For those considering transferring their pension abroad, it's essential to explore options like a Qualifying Recognised Overseas Pension Scheme (QROPS), which may offer tax advantages or more flexibility.
“Always seek guidance from a financial advisor with international expertise to navigate currency fluctuations, tax implications, and local pension regulations.”
Pension Credit set to increase
Pension Credit is to increase from April this year, helping 1.4million of the poorest pensioners, following the government announcement in the autumn budget.
Other pension and benefit rates covered by the Department for Work and Pensions (DWP) will be increased by 1.7%, in line with the increase in consumer inflation (CPI) in the year to September 2024.
The Standard Minimum Guarantee for Pension Credit is one of the payments that will increase by 4.1%, in line with the increase in Average Weekly Earnings in the year to May to July 2024.
Pension Credit gives people over State Pension age and on a low income extra money to help with living expenses. It can also help with housing costs such as ground rent or service charges.
But, up to 760,000 pensioner households who were entitled to receive Pension Credit did not claim it between April 2022 and March 2023, according to government estimates, making it one of the most underclaimed benefits.
From April 2025, the new rates will be:
- The Pension Credit Standard Minimum Guarantee for a single person will go up from £218.15 to £227.10, so a £8.95 rise a week.
- Pension Credit Standard Minimum Guarantee for a couple will be going up from £332.95 to £346.60, so an £13.65 increase
- For the same period, the Full Basic State Pension will go up from £169.50 to £176.45, an additional £6.95.
- The Full New State Pension will increase from £221.20 to £230.25, an £9.05 uplift.
