Expat pensions blow

Expat pensions blow

Wednesday, June 18, 2003

Thousands of expatriates living in many countries overseas will be distraught by yesterdays Court of Appeal decision against expat Annette Carson.

The Court of Appeal dismissed the claim that the government had unlawfully discriminated against retired Britons living overseas by freezing their pensions at the rate they were first paid abroad.

Nearly 500,000 pensioners living abroad are affected by the decision and will have been hoping Annett Carson would have won her appeal, opening the way for their pensions to be increased.

The pensioner, who lives in South Africa, lost an original attempt to overturn the UK government's ‘frozen pension’ policy in May 2002. Now Ms Carson has to pay a hefty bill for court costs

Older expatriate pensioners in many commonwealth countries including Canada, Australia and New Zealand are receiving pensions as low a £7 per week, while some 410,000 pensioners in countries in Europe, America and Barbados get the regular cost of living increases because of bilateral agreements with the countries concerned.

Social security agreements with other countries such as Canada, South Africa and Australia were drawn up much earlier, in the 1950s, before inflation became such an important issue.

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