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Government Actuary's report '06
Loss of Income to the Australian Economy
The cost of uprating frozen pensions
British State Pension rate history 
National Health savings  
National Insurance Fund surplus
Countries most affected, financially
Rights denied in these Commonwealth countries

Britain first froze the pensions of overseas residents in the early 1950s. At that time they may have been some excuse as the British economy was in dire straights in the years following WW II and there were very strict controls on the movement of Sterling out of the country.

Since then there have been many changes.  Britain now has one of the strongest economies in the world, yet pays its elderly one of the lowest retirement pension rates of all the developed countries.

Though the Governments of some of the stronger countries, such as the European Union and the USA, have managed to persuade Britain to upgrade pensions paid to its residents in their countries, pensions paid to Britons resident in Australia, Canada, New Zealand, South Africa, Zimbabwe, another 43 Commonwealth countries and certain other countries remain frozen at the date they first either emigrated as pensioners or became eligible after emigration.

The following table indicates the growth of the basic pension, year by year since 1948, paid to a single person after a full working life making compulsory contributions every week for upwards of 40 years.  Being contributory this pension is not means tested.

British State Pension Rate History
showing rate changes for the 96% of British pensioners who
enjoy annual indexation
(Basis: Basic pension, weekly)
The basic British Retirement, or Age, Pension is awarded in direct proportion to the number of contributions made to the National Insurance Fund. 40 years of contributions earns the full pension. 11 years for a man, or 10 for a woman, earn a 25% pension.

Note: Pensions are usually uprated in April of each year. The rates noted above are for individuals & couples with full pension entitlement and are for a weekly benefit.  The Australian dollar equivalent varies with the exchange rate. 

By ending this shameful pension discrimination, the British Government would display the integrity its citizens expect, enable pensioners to afford the personal care and standard of living required in their retirement years, help return some degree of pride to the lives of pensioners, and bring Britain in line with all other developed countries!

The equivalent of a saving of $A2,700,000,000 to the British exchequer every year.  Simply because Britons overseas cannot claim their National Health Service entitlements.

From the UK Government Actuaries Report at the link below (specifically appendix 8): 
In 2001/2002   the revenue from National Insurance contributions was forecast at £57.9 Billion.  The forecast expenditure was £55.5 Billion. 

The report also says, in para. 4, that the balance in the fund at the 31st March 2003 is estimated at £27,577 Million. 

And they say they cannot afford a measly £400 Million !!

Whitaker's Almanack

They could not explain the missing year.

The figures speak for themselves!
Since 2000 the surplus has continued to increase at the rate of about
£2.5 Billion a year!!

Countries most affected, financially

Britain denies full pension rights in these Commonwealth Countries:

The cost of uprating Frozen pensioners
Some comparisons to think about

Social Security total expenditure  2001/2           (latest available)                          £106 Billion 

Retirement Pensions expenditure 2001/2                                                             £45.7 Billion

Annual cost of restoring our expropriated uprating                                       £0.4 Billion    

DWP 2003 spend on outside consultants                                                            £0.4 Billion

INLAND REVENUE write-off of unpaid NI contributions                                  £0.75 Billion

TREASURY planned baby bond vouchers                                                          £1.0 Billion

INLAND REVENUE tax credits paid in error                                                     £2.0 Billion

DWP loss through ‘fraud and error’ (NAO report)                                              £3.0 Billion

TREASURY windfall from higher oil prices                                                         £3.0 Billion

DWP annual benefits’ blunders (public spending watchdog report)                       £7.0 Billion 

Current surplus in the NIF                                                                              £27.0 Billion

Since the year 2000 the surplus has been increasing at about £2.5 Billion a year

To put it into perspective, the entitlement of which we are deprived, in order, we are told, to improve living standards at home, would buy for each pensioner a bunch of bananas a week.

However our entitlement would deprive them of nothing - because the annual increase in the surplus alone is 6 times the annual cost of granting parity to all British pensioners.

James Nelson, FFA

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