Thousands of pensioners will miss out on a rise in state pension payments. The change most will enjoy in April 2026 will see around half a million people miss out on higher payments due to complex rules.

The policy has been labelled ‘unfair’ by critics. And it has led to intense debate – even in other countries.

During a recent trade debate in the Canadian parliament, several MPs criticised their government’s failure to make the UK’s entry into the Comprehensive and Progressive Trans-Pacific Partnership (CPTTP) contingent on the UK abolishing its controversial ‘frozen pensions’ policy. Just days ago, on October 28, numerous MPs labelled the policy as unjust and discriminatory, with one MP claiming that it was costing the Canadian economy around $1 billion.

The contentious ‘frozen pensions’ policy denies British pensioners residing in certain overseas countries – such as Canada and Australia – the annual uprating that aligns the UK State Pension with inflation. This policy predominantly affects UK pensioners living in Commonwealth countries (and overseas territories like the Falkland Islands), whose pension remains ‘frozen’ at the level it was when they left the UK or first began drawing their pension, effectively diminishing in value as the cost of living increases.

Many ‘frozen’ pensioners are pushed into poverty, receiving an average of merely £60 per week or less, in contrast to the current UK Basic State Pension of £176.45. Campaigners argue that the vast majority were not informed of the policy before they relocated, often to be closer to family in their later years, reports the Daily Record. Canadian MPs from various political parties have criticised the UK’s Frozen Pension policy for its “inequity and unfairness”, urging that its abolition should be a “critical component of all trade negotiations when it comes to the UK“.

New Democratic Party MP Gord Johns stressed: “Seniors here are losing tens of thousands of dollars over the course of their retirement. That costs the Canadian economy over $1 billion annually and leaves many seniors in poverty. These include veterans, nurses, people who have lived in Great Britain and served their country.”

James Maloney, a member of the ruling Liberal Party, confirmed that Canadian parliamentarians are voicing their discontent over the UK’s policy, revealing he has “raised the issue with British politicians at every opportunity, and so have his colleagues, side by side with me. We have written letters to the Prime Minister of the United Kingdom.”

Adam Chambers (Conservative Party of Canada) highlighted MPs’ long-term frustrations over the UK’s continued policy stance, arguing the Canadian Government should be doing more. He said: “The current government has let pass to negotiate on behalf of UK pensioners. If and when the bill is passed, we will have lost negotiating leverage with the UK to support UK pensioners living in Canada.”

Gord Johns later highlighted the situation of 100 year old Anne Puckridge, a Second World War veteran affected by the policy, who relocated to Canada in 2001 to live with her daughter. He said: “Anne was a veteran who served the UK and the UK has abandoned her. It has abandoned a veteran who put her life on the line to serve her country and who put herself forward. I point out that British pensioners in countries like the United States and Jamaica and across the European Union receive a pension that is fully indexed annually, unlike Canadian pensioners. I know that we have all been advocating from different parties, but it has not worked. This is our opportunity.”

Both nations have confirmed that addressing the frozen pensions issue constitutes official government policy. Edwina Melville-Gray, Chair of End Frozen Pensions Canada, said: “This debate in the Canadian Parliament is clear evidence that the UK’s frozen pensions policy is damaging not only pensioners but the UK’s reputation and ability to build strong diplomatic and trading relationships with key allies.

“Canadian MPs are growing increasingly angry at the unfairness and the cost to Canadian taxpayers. When multiple Members of the Canadian Parliament raise the same issue during a trade debate, it sends an unmistakable message: this policy is politically unsustainable, morally indefensible and the Canadian government should use every opportunity for leverage to see it ended.”

The campaign has urged the UK Government to start immediate talks with Canada and Australia to update the outdated Social Security Arrangements, or to pass new legislation to uprate all overseas state pensions. The ‘frozen pensions’ policy affects around 432,000 British pensioners living abroad, mostly in Commonwealth countries.

While pensioners in places like the US or EU receive annual increases, those in Canada, Australia, India, South Africa, and most Caribbean countries do not. Ending the policy is estimated to cost approximately £60 million per year, which is equivalent to 0.05 per cent of total State Pension spending. Earlier this week, Independent MP Neil Duncan-Jordan asked the UK Government whether there had been any “recent discussions” with Australia about uprating UK State Pensions for British pensioners living there.