Public Sector Pensions to be frozen till 2011
But a small rise for State Age Pensioners
See the full article: Public sector pensions frozen until 2011 also see what Myra Butterworth has to say in the Telegraph about State pensions
Phillip Scott reports that all Public Sector Pensions are to be frozen till at least April 2011. There will be no rise in April 2010. This affects the armed forces, civil service, teachers, the National Health Service etc.
According to the Treasury this is because retail prices went down in the year to September 2009, when the potential 2010 increases in pensions was considered.
This will be another huge blow to British State pensioners in frozen countries who also rely on a Public Sector Pension.
The effect on pensioners in South Africa, where the value of the British pound has dropped by 21.15% against the average exchange rate for 2008, will be worst. The following table shows the changes, between the 2008 average and October 2009, for the three major affected countries.
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Based on converting £100 |
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| Country | 2008 average exchange rate | October 2009 exchange rate | Percentage decrease in value |
| South Africa | 1,513 ZAR | 1,193 ZAR | down 21.15% |
| Australia | $218 AU | $177AU | down 18.8% |
| New Zealand | $261 NZ | $220 NZ | down 15.7% |
| Canada | $196 CA | $169 CA | down 13.77% |
But it is indisputable that the fall in the value of the Pound exacerbates the situation for all Frozen State Pensioners, even if they do not receive a Public Sector Pension.
Particularly if their country of residence does not offer compensation in the form of financial support.
Myra Butterworth, writing in the UK
Telegraph, says the 2010 increase in State Age Pension will be
£2.40
Myra Butterworth says "The marginal
increase, which will see pension payments increase from £95.25 a week to
£97.65, prompted outrage from charities and politicians, who called for the
pensions system to be urgently reformed.
"Andrew Harrop, head of policy at Age Concern and Help the Aged, said: “Although the commitment to raise the basic state pension by at least 2.5 per cent will be a relief for older people, a £97.65-a-week pension is still not enough to ensure a decent standard of living to people who have worked hard all their lives."
From April 2010, both men and women reaching the state pension age will only need 30 qualifying years of National Insurance contributions to build up a full basic state pension, rather than the current 39 for women and 44 for men.
This will be a bit of a help to pensioners in Britain, Europe and some other countries, but no consolation to pensioners in frozen countries who, of course, won't get it.
She also tells in her article that "From April 2010, both men and women reaching the state pension age will only need 30 qualifying years of National Insurance contributions to build up a full basic state pension, rather than the current 39 for women and 44 for men."