Rishi Sunak announced an array of measures in his 2021 Budget (Photo: PA)

 

by Michael Bridge

 

Recently the UK government announced that UK pensions were being increased to keep pace with inflation, but not if you have retired to Thailand.

The Chancellor, Rishi Sunak unveiled a wide-ranging series of new measures in his 2021 Budget this week, from an overhaul of alcohol duty to reinforcing a freeze on fuel duty.

Public sector pay rises, a hike to the national minimum wage and a £6bn cash injection for the NHS had already been revealed ahead of the speech on Wednesday.

In his address, the Chancellor promised to help families meet the rising cost of living as he painted a positive picture about the health of the economy as it recovers from the Covid-19 pandemic.

What does the 2021 Budget mean for pensions?

There was very little mention of specific policies for pensioners in Mr Sunak’s announcement.

Indeed, the Chancellor’s only explicit reference to pensioners came when he said he will consult on further changes to the regulatory charge cap for pensions schemes, in a bid to “unlock institutional investment while protecting savers.”

One reason for the scarcity of new information would be that the year’s major pensions announcement – the scrapping of the triple lock – came back in September.

 

Keep up to date with all things Thailand - Join our daily ASEAN NOW Thailand Newsletter - Click to subscribe

The Government broke a manifesto pledge by introducing a new “double lock” system for the next year, to account for the way the Covid pandemic has inflated wage growth.

Because of this, we know that from next year the state pension will increase 3.1 per cent in line with the latest UK inflation rates.

This was pointed out by Helen Morrissey, senior pensions, and retirement analyst at the financial services company Hargreaves Lansdown.

She said: “Today has been one of the quieter Budgets from a pension perspective. However, this is only because we have had so many announcements already this year.

“Given this backdrop it’s understandable no further pension changes were announced today – pensioners already have much to think about.” 

How much will pensions increase in 2022?

Pensioners are in line for an increase of £5.55 a week next year after inflation dipped slightly.

The Office for National Statistics said the Consumer Prices Index (CPI) measure of inflation, which will be used to calculate the uplift, fell to 3.1 per cent in September, from 3.2 per cent in August.

Alistair McQueen, head of savings and retirement at Aviva, said: “Today’s 3.1 per cent inflation (CPI) figure will predict the rise in the value of the state pension from April 2022.

“If confirmed by Government, this should represent a £5.55 rise in the weekly value of the full new state pension in April 2022, from £179.60 to £185.15.”

The triple lock guarantees that the state pension rises in line with inflation, earnings or 2.5 per cent – whichever is higher.

However, its replacement the double lock means that the link between pensions and wage growth has been severed for a year.

If it were still in place, the triple lock would have given pensioners a boost of around eight per cent next year – around £14 more a week for some.

But no Increase for Thai based UK Pensioners

Many U.K. citizens living abroad do not receive annual increase in pension payments. 

This is entirely unjust! 

Why should we not get equal rights? Pensioners living abroad are less of a strain on the National Health (not using the services of G.Ps., emergency services etc.), in most cases having to fund health care including care homes privately. 

Not receiving Winter Fuel Payment, not receiving discounted travel on public transport. Yet we are still penalized! It is only fair that the Government treats all its citizens on an equal basis!

There is now a petition running on a government site and currently, they had close to 9,000 signatures. With 10,000 the government must respond.

Reach 100,000 and the petition will be considered for debate in Parliament.
 
So, make the effort and please add your name, and share this article so more can sign

https://petition.parliament.uk/petitions/601821 

 

-- © Copyright  ASEAN NOW 2022-03-25

 

- Aetna offers a range of visa-compliant plans that meet the minimum requirement of medical treatment, including COVID-19, up to THB 3m. For more information on all expat health insurance plans click here.

 

- Follow ASEAN NOW on LINE for breaking COVID-19 updates

 

Get your business in front of millions of customers who read ASEAN NOW with an interest in Thailand every month - email [email protected] for more information

Done ????

 

Although the article headline is rather sensationalist and implies that Thai expats are singled out. This has always been the case for emigrant pensioners unless it was to another EC country - not sure if that has now changed?

1 hour ago, London Lowf said:

Done ????

 

Although the article headline is rather sensationalist and implies that Thai expats are singled out. This has always been the case for emigrant pensioners unless it was to another EC country - not sure if that has now changed?

EEA, Switzerland and others, some nice spots to choose from amongst them.

• Barbados
• Bermuda
• Bosnia-Herzegovina
• Gibraltar
• Guernsey
• the Isle of Man
• Israel
• Jamaica
• Jersey
• Kosovo
• Mauritius
• Montenegro
• North Macedonia
• the Philippines
• Serbia
• Turkey
• USA

3 hours ago, webfact said:

Why should we not get equal rights? Pensioners living abroad are less of a strain on the National Health (not using the services of G.Ps., emergency services etc.), in most cases having to fund health care including care homes privately. 

Not receiving Winter Fuel Payment, not receiving discounted travel on public transport. Yet we are still penalized! It is only fair that the Government treats all its citizens on an equal basis!

Just to skip the petition. Sure, British pensioners are not a strain on health care or other services. However, they neither inject their money in the country that gives it to them. So, there we have the reason. And then, crying about a raise of 5,55 pound per week? That´s not very sophisticated. That´s not to be called a raise. Such things are know under the name of weekly disgraces.

3 hours ago, London Lowf said:

Done ????

 

Although the article headline is rather sensationalist and implies that Thai expats are singled out. This has always been the case for emigrant pensioners unless it was to another EC country - not sure if that has now changed?

Like The Philippines, were I believe they do get increases. 

Must have filled in a number of these petitions over my years here......

UK is no longer another EU Country.

1 hour ago, Gottfrid said:

Just to skip the petition. Sure, British pensioners are not a strain on health care or other services. However, they neither inject their money in the country that gives it to them. So, there we have the reason. And then, crying about a raise of 5,55 pound per week? That´s not very sophisticated. That´s not to be called a raise. Such things are know under the name of weekly disgraces.

The country does NOT 

'give it to them' . It is not a 'benefit' as its been paid for, during ones working lives.

Worked 40 years paying tax & NI.  Still pay tax but my State pension is 350 UKP per MONTH!

I thought there were plenty of threads on UK pensions and we are not allowed to post new ones anymore?

1 hour ago, DILLIGAD said:

The country does NOT 

'give it to them' . It is not a 'benefit' as its been paid for, during ones working lives.

well said that man ..i worked 50 years and given a pittance to exist on..just take a look at the European pensions 3x more and earlier retirement.. Britain you should be ashamed..

1 hour ago, DILLIGAD said:

The country does NOT 

'give it to them' . It is not a 'benefit' as its been paid for, during ones working lives.

It depends on how you look at it. You can also see it as it´s money coming from taxes you paid on income during your life. As for what I know about taxes, it´s the governments decision to use the state coffers as suitable. In that case you are given a pension and should be happy for that.

There is another option in life, and that is to save and invest, for building a great stability.

7 minutes ago, Harveyboy said:

well said that man ..i worked 50 years and given a pittance to exist on..just take a look at the European pensions 3x more and earlier retirement.. Britain you should be ashamed..

But everyone has the choice to save and invest during their working career, right? Can´t imagine how people still can believe in pension systems, that have been all from failing to weakened as well as half dismantled all over the world since the late 1980s. Here everyone had like 50 years of opportunity to create a better and more stable life. As well as Britain should be ashamed in your eyes, in my opinion the ones just disregarding their opportunities in life as well as clear signs on that something is wrong or changing should be ashamed as well.

9 minutes ago, Gottfrid said:

It depends on how you look at it. You can also see it as it´s money coming from taxes you paid on income during your life. As for what I know about taxes, it´s the governments decision to use the state coffers as suitable. In that case you are given a pension and should be happy for that.

There is another option in life, and that is to save and invest, for building a great stability.

Well you won't be getting it if you have not paid the NHI 'stamp' and it will be reduced if you haven't paid it for sufficient qualifying years. You can theoretically get the pension if you have paid no tax. For a person like myself, working outside UK and not subjected to UK taxation, paying the NHI stamp was touted as a good investment. 

4 minutes ago, jacko45k said:

Well you won't be getting it if you have not paid the NHI 'stamp' and it will be reduced if you haven't paid it for sufficient qualifying years. You can theoretically get the pension if you have paid no tax. For a person like myself, working outside UK and not subjected to UK taxation, paying the NHI stamp was touted as a good investment. 

Sounds like rules and regulations for most countries regarding the time of working. About the stamp, I don´t know, but as you post, sounds like a good investment if you can get more out of it. ???? 

1 hour ago, DILLIGAD said:

The country does NOT 

'give it to them' . It is not a 'benefit' as its been paid for, during ones working lives.

30 years of paying into the system like we all have done should equal parity with any other person !!!!

Done, yet again!

 

Don't forget to click on the email link and share the link on the various apps.

1 minute ago, blackshadow said:

30 years of paying into the system like we all have done should equal parity with any other person !!!!

....and no longer a burden on the NHS and not claiming any other benefits.....like free travel, warm home allowance, winter fuel allowance BUT still paying UK tax on any other earnings like rental income, company pensions.......it is daylight ******* robbery.

8 minutes ago, Gottfrid said:

Sounds like rules and regulations for most countries regarding the time of working. About the stamp, I don´t know, but as you post, sounds like a good investment if you can get more out of it. ???? 

In the early years the cost was relatively low, but more recently the stamp has become more expensive for a non resident worker, called a Class 3. It was recently about £15.40/week, you had to pay every week, for a currently £179/week pension. Minimum 10 years to get a pension, prorate up to 35 years (I think) for the full pension.

I fully intend to mask my whereabouts for as long as possible to get what I have contributed to for 35 years raising the pension age and moving the qualifying years goalposts is justification enough for me end of story ???? 

A troll post with racist undertones has been removed also replies

2 minutes ago, sammieuk1 said:

I fully intend to mask my whereabouts for as long as possible to get what I have contributed to for 35 years raising the pension age and moving the qualifying years goalposts is justification enough for me end of story ???? 

same same....????

3 hours ago, Gottfrid said:

Just to skip the petition. Sure, British pensioners are not a strain on health care or other services. However, they neither inject their money in the country that gives it to them. So, there we have the reason. And then, crying about a raise of 5,55 pound per week? That´s not very sophisticated. That´s not to be called a raise. Such things are know under the name of weekly disgraces.

I could (sort of) understand it if they blocked all external counties for increases but to give it to places like the USA, Philippines !!!

3 hours ago, Gottfrid said:

Just to skip the petition. Sure, British pensioners are not a strain on health care or other services. However, they neither inject their money in the country that gives it to them. So, there we have the reason. And then, crying about a raise of 5,55 pound per week? That´s not very sophisticated. That´s not to be called a raise. Such things are know under the name of weekly disgraces.

So you would agree wholeheartedly UK expats should not be paying UK income tax.....correct???

24 minutes ago, Will B Good said:

....and no longer a burden on the NHS and not claiming any other benefits.....like free travel, warm home allowance, winter fuel allowance BUT still paying UK tax on any other earnings like rental income, company pensions.......it is daylight ******* robbery.

very true

8893 signatures now

Done  8900 so far...

I put my name to the pensions petition months back 

I am surprised its not moved up by Much there must be  thousands plus retired pensioners around the world who are in the same boat

Anyone have a idea of how many in Thailand ????

Just get an address and phone number in Philippines. Ring DWP and let them know you've moved and when. Job done.

 

HM gov will never change their stance. It's been all the way to the EU court of Human rights and back. Dead horse I'm afraid.

2 hours ago, Will B Good said:

So you would agree wholeheartedly UK expats should not be paying UK income tax.....correct???

Yes, why not! But, then you would have to pay tax in the country you chose to reside instead. Like normal tax rules, right?

2 hours ago, Henryford said:

I could (sort of) understand it if they blocked all external counties for increases but to give it to places like the USA, Philippines !!!

Yes, that´s totally wrong. I agree.

2 hours ago, jacko45k said:

In the early years the cost was relatively low, but more recently the stamp has become more expensive for a non resident worker, called a Class 3. It was recently about £15.40/week, you had to pay every week, for a currently £179/week pension. Minimum 10 years to get a pension, prorate up to 35 years (I think) for the full pension.

That´s just to much to pay for such bad ROI. There are far better ways to secure a higher income. At the same time you do not know how long you will live and use it. With you own investment, and a death sentence of 4 month left to live you could at least use your money that invested to get.