New State Pension update for over 100,000 people on frozen payments

Nearly half a million pensioners will not receive the 4.8 per cent payment rise in April.State pension age to be reviewed by UK Government amid fears that 45% of workers are not saving

The ‘End Frozen Pensions Campaign’ delivered evidence to the Standing Committee on International Trade earlier this week, urging Canadian MPs to use the UK’s accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) as leverage to end Britain’s long-standing ‘frozen pensions’ policy.

While millions of pensioners across Great Britain – including over one million living in Scotland – can look forward to the annual State Pension uprating in April, nearly half a million people will not be due the increase. An estimated 453,000 pensioners – including over 100,000 in Canada – are living in a country which does not have a reciprocal agreement with the UK Government resulting in them not receiving the annual State Pension uprating.

This is despite having paid the necessary amount of National Insurance Contributions to receive the state Pension.

READ MORE: Nearly half a million older people not due State Pension pay rise in AprilREAD MORE: DWP confirms New and Basic State Pension weekly payment rates from April

During the hearing on Bill C-13, campaigners and affected pensioners highlighted how thousands of expats living in Canada are denied annual pension increases, despite having paid into the UK system for decades.

Their State Pension amount is essentially frozen at the point of emigration. As a result, many see their incomes steadily eroded by inflation, which in this case, forces Canadian social security support systems to bridge the gap.

Campaign representatives stressed that while Canada uprates its own pensions for citizens living in the UK, Britain refuses to reciprocate, creating what MPs from across parties have repeatedly described as a ‘discriminatory and unfair’ system.

Giving evidence on behalf of the Canadian Alliance of British Pensioners and the End Frozen Pensions Campaign, Board Chair Edwina Melville-Gray told the Committee: “More than 100,000 people in Canada worked, contributed, and paid into the UK system for decades. Yet because they chose to retire here, their pensions are frozen forever.

“If they lived in the United States or Europe, they would be treated fairly. In Canada, they are punished. That is discrimination by postal code.”

She also highlighted the growing burden on Canadian taxpayers, noting that Canada now spends more than $200 million (£107.65m) annually supporting British pensioners who should be supported by the UK system they paid into.

With Bill C-13 set to grant the UK permanent trade benefits under CPTPP, the campaign warned that Canada’s negotiating leverage will largely disappear once ratification is complete.

The call for tangible action on frozen pensions comes amid broader discussion of Canada’s role on the world stage.

At the World Economic Forum in Davos earlier this year, Prime Minister Mark Carney urged middle powers like Canada to stop “going along to get along” in international affairs: saying countries must “take the sign out of the window” and act with conviction rather than passive acceptance of the status quo.

During the evidence session, campaigners argued that allowing accession to proceed without securing reform would represent a major missed opportunity, entrenching a policy that affects more than 453,000 British pensioners worldwide, the majority of whom live in CPTPP countries.

Ms Melville-Gray continued: “This is the moment when Canada has real leverage. To let it pass would be to add insult to injury, to pensioners who did everything right, and to Canadian taxpayers left to pick up the bill. The cost of fixing this is modest. What’s missing is political will.

“Canada is being asked to grant permanent trade privileges worth billions while pension injustice remains frozen. That sends exactly the wrong signal. Trade reciprocity must include people, not just products.”

Evidence presented to the Committee showed that official UK data puts the cost of uprating pensions in Canada at around £13 million for 2027/28, a fraction of the UK’s overall pension budget.

Campaigners argued that this makes continued inaction not only unjust, but irrational.

Ms Melville-Gray added: “This scandal can be resolved for a relatively small sum. Every year of delay deepens the injustice and worsens the hardship.”

The End Frozen Pensions Campaign emphasised that it does not oppose UK accession to CPTPP. Instead, it is calling for a responsible pause to secure firm commitments on pension uprating before ratification.

In its submission, the Campaign urged MPs to recommend that:

Bill C-13 should not proceed until the UK commits to negotiations on annual pension uprating; and

Canada and the UK modernise their bilateral social security agreement to include full indexation

Following the session, the campaign said it will continue engaging with MPs, Ministers, and stakeholders to ensure the issue remains at the forefront of CPTPP deliberations.

Ms Melville-Gray added: “After 70 years, it is time for equity and reciprocity. This is Canada’s moment to stand up for its residents, protect taxpayers, and insist that fairness is part of any modern trade relationship.”

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