Steve Webb denies rumours that expat pensions will be unfrozen

Rumours that the pensions of British citizens living abroad might be unfrozen have been played down by Steve Webb, the UK’s pensions minister. There have been reports that Australian minister Jenny Macklin has been meeting with Iain Duncan Smith, work and pensions secretary, about reforming the pensions paid to UK expats who have relocated to Australia.

MP Stephen Phillips has asked Mr Webb if he has knowledge of a report published in 2011 by Oxford Economics that claims upgrading the pensions of those living outside the UK could encourage more people to move abroad and reduce the current burden on the health service.

Webb replied that he had read the document, adding that in his opinion it was flawed in terms of recording the savings that may, or may not, be made over the next two
decades in terms of social and health care up front.

There has been no official confirmation from the Department of Work and Pensions as to whether Mr Duncan Smith has been in meetings with Ms Macklin. It did however say that pensions being paid to expats were only uprated in countries with which the UK already had an agreement in place, or where there was a legal requirement to do so.

The department said that at present there were no plans to change the uprating agreements already in place overseas.