Frozen state pension: How do you unfreeze payments on visits to the UK?

 

By TANYA JEFFERIES FOR THIS IS MONEY.CO.UK 

 

Around 500,000 elderly expats live in countries where their state pension is frozen at whatever amount it was set at when they moved abroad.

 

Some people who retired overseas when the full basic rate was £67.50 a week in 2000 still get that, rather than the £141.85 a week now received by others who retired that year.

 

But expats who come back to the UK, whether for a short visit or for good, get their state pension uprated back to the full amount again if they apply to the Department for Work and Pensions.

 

On a short stay, it will only be hiked for the duration of a trip, but the gulf between the frozen and the standard amounts can be so huge that it is worth it even then.

 

We recently covered the case of a 100-year-old woman who served as a nurse in World War II, and receives a £46-a-week state pension which hasn't increased since she went to live near her children in Australia in the early 1990s.

 

Very elderly people might not often travel to the UK, or the other 'unfrozen' countries where you can also get your payments increased temporarily, due to frailty or ill health.

 

However, if you do the process of getting your payments increased is explained below.

 

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Whether an expat's pension is frozen or not depends entirely on where you move to, because the Government has struck individual deals with some countries but left around 150 others out in the cold.

 

This has created an historical anomaly, which originated some 70 years ago, where people retiring to Canada, Australia, India, Africa and many parts of the Caribbean lose out on state pension increases, while those living in EU countries, the US, Jamaica, Israel and the Philippines get their full whack.

 

MPs and campaigners have criticised the Government over the policy, which they have variously called illogical, unfair and morally wrong.

 

In its most recent statement on this, the Government said: 'We understand that people move abroad for many reasons and that this can impact on their finances. There is information on Gov.uk about what the effect of going abroad will be on entitlement to the UK state pension.

 

'The Government's policy on the uprating of the UK state pension for recipients living overseas is a longstanding one of more than 70 years and we continue to uprate state pensions overseas where there is a legal requirement to do so.'

 

We explain more here, and see below for the full list of frozen countries.

 

John Duffy is chair of the International Consortium of British Pensioners which runs the End Frozen Pensions campaign. He says:

 

Quite astonishingly, a 'frozen' state pensioner will find their UK state pension 'thawed' if they return to the UK, even if only for a short period.

 

Indeed, the pension is unfrozen during any visit to a list of 'unfrozen' countries, not just the UK.

 

This means that somebody could receive – for example - £46 in one week living in a 'frozen' country,

visit the UK, where their weekly pension will be tripled, only for this to revert to the frozen rate when back in their country of residence.

 

John Duffy:  A 'frozen' state pensioner will find it 'thawed' if they return to the UK - but you need to contact the DWP

 

This arbitrary system highlights the sheer inequity of frozen pensions: if you have paid in the same dues and contributions, why should it matter where you happen to be?

 

Is there a minimum stay in the UK required?

 

There is no minimum stay in the UK required to receive the full uprated state pension. 

 

A pensioner only has to inform the DWP of their arrival and departure dates.

 

What are the best contact details to sort this out with the DWP?

 

There is very little information on how to arrange this on the DWP website – this is rather typical of all communications provided to support pensioners overseas and mirrors the distinct lack of communication informing a pensioner that their state pension might be frozen should they move abroad.

 

Full story: https://www.thisismoney.co.uk/money/pensions/article-10786301/Can-state-pension-unfrozen-visit-UK.html

 

-- © Copyright  This is MONEY 2022-05-09

 

- Cigna 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.

 

5 hours ago, webfact said:

We recently covered the case of a 100-year-old woman who served as a nurse in World War II, and receives a £46-a-week state pension which hasn't increased since she went to live near her children in Australia in the early 1990s.

Appalling travesty.

Out of sight , out of mind , that's what's happening.

regards Worgeordie

YES

 

"What are the best contact details to sort this out with the DWP?

 

There is very little information on how to arrange this on the DWP website – this is rather typical of all communications provided to support pensioners overseas and mirrors the distinct lack of communication informing a pensioner that their state pension might be frozen should they move abroad."

 

It's regarded as a change of circumstances, and you need to report changes to your personal details (such as your address or bank details) by telephone or letter.

 

When I visit the UK, which I haven't done for a couple of years, it's one of my first phone calls on arrival, though I imagine it's pretty hard to get through at the moment.

 

If you travel via the EU on your inward or outward journies, remember to include those details in your claim.

 

https://www.gov.uk/international-pension-centre

 

Yes you can unfreeze your pension . But if you return to a country with out a social agreement the pension will revert to how it was before .

The whole issue of pensions received while living in Thailand will become far more apparent in a decade if inflation is allowed to continue .

If you defer your pension, do you get the annual increases?

1 hour ago, hotchilli said:

Appalling travesty.

Yes, right on hotchilli ...  and a disgraceful, shameful action by her own government to do to her.

I'm reminded of a woman I listened to a podcast the other day (maybe the Young Turks or Rebel HQ?) a Yank lass named Anna Kasparian or a name similar who had a wonderful and spot-on dummy spit.

I paraphrase and compress the context of her passionate didactic; 'They don't care about you, none of you, they (the political party she was remarking on as well as every sitting government of her nation) couldn't care less about you, you family, your wellbeing or your life.'

Yes you can unfreeze your state pension but it does take a few months before it is actioned. I unfroze my pension in 2019 and it took 4 months. I have no idea if the COVID scenario has provided excuses for furthe delays!

 

Instructions for unfreezing UK pension:

1. Take it out monthly. The whole amount.
2. Open the door and place it in the micro.
3. Click defrost!

Yes just ring the DWP and give them the dates of arrival and departure you can even claim for one day and if you decided to go on holiday to a country where the U.K. pension is not frozen you can also claim for the time you will be there

19 hours ago, fgmr said:

Yes you can unfreeze your state pension but it does take a few months before it is actioned. I unfroze my pension in 2019 and it took 4 months. I have no idea if the COVID scenario has provided excuses for furthe delays!

 

You must have caught them at a bad time I waited 3 weeks which was when my next payment was due 

On 5/9/2022 at 10:03 AM, malcolminthemiddle said:

If you defer your pension, do you get the annual increases?

For every year you defer you get a 5.8% increase on the pension you would have got when you do claim. Unfortunately the basic amount is frozen at the point of your normal retirement age - so you cannot accrue the subsequent increases as the basis for setting the amount of your  eventual claim. With current inflation ,especially,and the gamble on living long enough to get back the amount you lost by deferring it really isn’t now worth it. 

2 hours ago, nchuckle said:

For every year you defer you get a 5.8% increase on the pension you would have got when you do claim. Unfortunately the basic amount is frozen at the point of your normal retirement age - so you cannot accrue the subsequent increases as the basis for setting the amount of your  eventual claim. With current inflation ,especially,and the gamble on living long enough to get back the amount you lost by deferring it really isn’t now worth it. 

Thanks. I agree. It would take 17.24 years (100/5.8) to get back the cost of one year deferment.

7 hours ago, nchuckle said:

Unfortunately the basic amount is frozen at the point of your normal retirement age - so you cannot accrue the subsequent increases as the basis for setting the amount of your  eventual claim. 

When I deferred my pension for a few weeks I subsequently received the payment that was in force in the new financial year, not the one that was in force when I actually reached pensionable age a few weeks earlier.

On 5/10/2022 at 12:33 PM, crazykopite said:

Yes just ring the DWP and give them the dates of arrival and departure you can even claim for one day and if you decided to go on holiday to a country where the U.K. pension is not frozen you can also claim for the time you will be there

Or alternatively use their online enquiry form* to send them a message instead (which is what I have done in connection with an upcoming European trip).

 

*https://secure.dwp.gov.uk/ipc/personal-details

 

As @theoldgit intimated above, if you attempt to contact them by phone it is likely these days that you will find yourself placed on hold for an eternity before you are actually able to speak to a real live human being at their end.

 

On 5/9/2022 at 5:29 PM, fgmr said:

Yes you can unfreeze your state pension but it does take a few months before it is actioned. I unfroze my pension in 2019 and it took 4 months. I have no idea if the COVID scenario has provided excuses for furthe delays!

 

I’ve just called on Friday for travel next Saturday my pension will be unfrozen by the time I arrive.