Pension History
What happened to pensions since they started
When pensions were first introduced in 1925, they were only payable in Great Britain, Northern Ireland and the Isle of Man.
Subsequently; a provision was included in the Contributory Pensions Act 1929 enabling pensions to be paid in His Majesty’s dominions (broadly the countries which formed the Commonwealth).
In 1946 the pension was increased from 50p a week to £1.30. However the increase was not paid to overseas pensioners. No clear reason was ever given, but most likely it was due to the dire financial straights in which Britain found itself at the end of WWII. There were very strict limitations on taking, or sending, money out of the country.
That ruling has remained in force ever since, resulting in the inequity of what we now call the Frozen Pension policy of the United Kingdom. The annual increase in pension has only been paid to residents in the UK, though pensioners in a growing number of overseas countries, including European Union and the United States, have been granted annual indexation. British Citizens who choose to retire to a Commonwealth country, and some others, are still denied their full pension entitlement from the date they leave Britain, or having done so, reach pensionable age. You can see the complete list of Frozen and Indexed countries at our page; Are you frozen or are you not ?
Ever since 1950 political parties in opposition have stated, time and time again, that this policy is wrong, and that all pensioners should be be paid the full pension to which they are entitled in accordance with their mandatory contributions to the National Insurance Fund. However, on gaining power, those same political parties have reneged on their assurances.
Currently, 2009, the full basic State pension stands at £95.25. But an 85 year old veteran, who served throughout WWII and emigrated to a Commonwealth country to join his children and grandchildren, when he retired in1983, received less than half the full entitlement he had earned- just £38.70.
For over 20 years Frozen pensioners around the world, over 500,000 of them, have been fighting for Pension Parity. Since 1999 first South Africa, and now Canada, have been planning to take, and actually taking, the issue through the Courts; first in Britain through the High Court and the House of Lords; then in 2008 through the European Court of Human Rights (ECHR); then this year, 2009, through an appeal to the Grand Chamber of the ECHR before 17 judges.
The cases in the British Courts all failed, the 2008 case before the ECHR also failed, though the President of the Court disagreed with the Judgement. The Appeal to the Grand Chamber of the ECHR, which was heard on the 2nd September, is still to declare its Judgement. This will probably not be till about March 2010.
Where is the logic ?
About 1
Million British Age Pensioners have chosen to spend their retirement years
overseas. In doing so they save the British Economy over A BILLION POUNDS A
YEAR because they no longer call upon the National Health Service. They pay for
their own medical needs in whichever country they choose to live – or have their
costs met by the Health Service of their retirement country, if it is available
to them.
About 500,000 of Britain’s overseas pensioners have their pensions indexed every
year, in the same way as they are indexed at home – what’s more they also
receive the Christmas bonuses handed out in Britain, and even the winter fuel
allowance. This includes British pensioners living in the Canary Islands, the
South of Spain, Sicily and even certain Caribbean islands.
In fact the other 500,000 British pensioners living overseas have their pensions
frozen because they have chosen to move to Commonwealth countries where Britain
considers them second rate citizens, not worthy of their full pensions. That
BILLON POUND BONUS in the exchequer would be more than ample to grant pension
parity to all British pensioners. Where is the logic ?
During the years while the pension freezing
policy has been in force a balance has been accumulating in the National
Insurance Fund. This past year alone the balance has increased by over
£9,000,000,000 (Yes Nine Billion Pounds). The
balance currently exceeds £45,000,000,000. Granting Parity to all British
pensioners world wide would cost but a fraction of that.