Expats challenge ‘unfair’ UK state pension rules

A landmark case that could affect thousands of UK expats drawing state pensions abroad is under consideration in the European Court of Human Rights today.

Thirteen pensioners living overseas want the government to increase their state pensions in line with inflation each year - which could mean a rise of up to £30 a week plus a backdated lump sum with interest.

UK state pension rules say only retirees who live in the European Economic Area (EEA) and 15 other countries, including some but not all Commonwealth nations, can have pensions that are linked to inflation.

The pensioners feel this is unfair as contributed to their state pensions while working in the UK, but are refused a benefit other pensioners get by right.

Andrew Harrop, head of Public Policy for Age Concern and Help the Aged, said: “It’s unfair that pensioners who have made national insurance contributions all their lives in the UK are penalised for retiring abroad and losing out on the uprating of their pension.”

“We hope the case today will see an end to this inequality and ensure the government gives every pensioner their fair share, no matter where they decide to retire.”

Fair Government

The UK Department of Work and Pensions argues that the government’s priority is to help the least well-off pensioners living in the UK.

The campaigners include pensioners who now live in South Africa, Australia, Hong Kong and Canada.

The pensioners and government will both make their case at the two-hour hearing in Strasbourg.

Judgment is not expected until at least March 2010.

The state pension has stood frozen at £67.50 a week for nine years for expats living outside the EEA and other approved countries but currently pays £95.25 a week to a single UK pensioner.

“It is the last chance we’ve got,” said Charles Poole, president of the South African Alliance of British Pensioners (SAABP). “We have to remain optimistic. We are confident human rights legislation is fair and that we have a fair and strong case. The discrimination against us is not based on any degree of logic.”

UK courts, including the House of Lords, have already dismissed the case.