STATE PENSION payments increase in the UK and for expats living in some countries each year, under the triple lock policy. This week, the Department for Work and Pensions will send letters to thousands of pensioners regarding what will happen to the state pension should there be a no-deal Brexit.
Both the basic and new state pension increase each year, under what is known as the triple lock. This means that it rises by whichever is the highest of earnings (the average percentage growth in wages in Great Britain), the percentage growth in prices in the UK as measured by the Consumer Prices Index (CPI), or 2.5 per cent. If a person lives abroad and claims the UK state pension, they may or may not be able to get an uprated state pension. The government website states that the state pension will only increase each year if the claimant lives in the European Economic Area (EEA), Gibraltar, Switzerland, or a country that has a social security agreement with the UK - not including Canada or New Zealand.
Should a person not live in one of these qualifying countries, then they would not get the yearly increases.
If they return to live in the UK that their state pension will return to the current rate.
The Government announced last month that the basic and new state pension would continue to be uprated for a further three years until March 2023, in the event of a no-deal Brexit.
The commitment means that the UK state pension paid to those living in the EU will be uprated each year until March 2023, should the UK leave the EU without a deal.
During this three-year period, the UK government plans to negotiate a new arrangement with the EU to ensure that the uprating continues.
The government is sending out letters outlining this commitment each week.
The increase will be at least 2.5 per cent annually for the duration of this Parliament, with up to £200 per year per person, the DWP announcement said.
Pensioners are being told they do not need to do anything to continue receiving their state pension.
There is a new dedicated call centre team based in Newcastle, should those affected have any questions.
Work and Pensions Secretary Dr Thérèse Coffey said: “Pensioners in Europe who have paid into the system for years deserve peace of mind over their future finances.
“Not only are we providing much-needed reassurance for hundreds of thousands of retirees, we’re ensuring we are fully prepared for leaving the EU on 31 October.
“No matter the circumstances of Brexit, we’ve made sure that pensioners do not need to take any action to continue receiving their hard-earned State Pension.”
Source:-
https://www.express.co.uk/finance/perso ... -2020-rise
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