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Pensions: Britons Living Abroad

Answer

The United Kingdom state pension is payable world wide and is not dependent on there being a bilateral social security agreement in place. It is uprated abroad where there is a legal requirement to do so. Reciprocal social security agreements are not entered into solely with a view to paying annual uprating increases to UK pensioners living abroad.

There are 31 social security agreements covering 37 countries and territories, the first of which was agreed in 1948. The Government have not entered into any new commitments since 1981. The agreements with countries which are now in the European Economic Area are largely superseded by EU regulations.

Inconsistencies arise from the host country agreements with Australia, Canada and New Zealand where benefits are not paid by the exporting country, but periods of residence or contributions in one country are accepted as being periods of residence or contributions in the other.

Over time representations have been received from the Australian, Canadian and New Zealand Governments and some of the British Overseas Territories. However it has been and remains the policy of successive Governments not to enter into new agreements with countries or territories where this would include uprating pensions in order to contain the long-term cost of the UK social security system and ensure that it remains affordable. Requests for new agreements from other countries have been turned down on this basis.

The issue has been examined extensively by the domestic courts, culminating in a ruling by the European Court of Human Rights in 2010. All legal decisions have found in favour of the Government.

Secondary information

Type

Written question

Reference

743 cc21-2WA; HL4930

Session

2012-13

Subjects

British nationals abroad Reciprocal arrangements State retirement pensions

Link

View this Written question on www.publications.parliament.uk