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UK pension increases for Thailand ?

Roger · 9 · 669

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Online Roger

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Brits might want to add their vote to this petition  :)

"Brits here miss out on the annual increase to the O A Pension. Why should we not get equal rights? Pensioners living abroad are less of a strain on the National Health (not using the services of G.Ps., emergency services etc.), in most cases having to fund health care including care homes privately.

Not receiving Winter Fuel Payment, not receiving discounted travel on public transport. Yet we are still penalized! It is only fair that the Government treats all its citizens on an equal basis! There is now a petition running on a government site and currently, they had close to 9,000 signatures. With 10,000 the government must respond. Reach 100,000 and the petition will be considered for debate in Parliament
."

 https://aseannow.com/topic/1254591-no-increase-for-thai-based-uk-pensioners-vote-here-to-get-this-changed/
« Last Edit: March 26, 2022, 06:44:01 AM by Roger »
''If you can't explain it simply, you don't understand it well enough'' - Albert Einstein


Online rdrokit

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What is the reason for not giving increases to UK expats? I have been collecting my US government pension for about 12 years now while living in Thailand and it has increased about 20,000 baht due to cost of living increases each year.


Online Pompui

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Take your pick

Because they can
Because they're tight *****
Because there is less chance of us turning up on their doorstep protesting
Because it won't affect them. If any of them do retire overseas, they will have so much money in the bank that the pension won't matter.
Because we are not spending our pension in the UK and therefore not lining their pockets with VAT.
Because they want more parties in Downing Street

If anyone reading this are members of other forums then please mention this on them.

Is it worth sending it to Thaiger?
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Online Roger

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Pompui - nice one  ;)

RDRO - "The policy on uprating UK state pensions for overseas residents is that the annual index-linked increases are paid outside the UK where there is a legal requirement to do so. Examples of this are where UK State Pension recipients are living within the European Economic Area or where there is a reciprocal agreement between the UK and the host country that provides for uprating of the UK State Pension.

Around 510,000 recipients of the UK State Pension living overseas do not get State Pension increases – 84% of those live in Australia, Canada and New Zealand
."

https://www.gov.uk/government/publications/estimated-costs-of-uprating-state-pension-in-frozen-rate-countries/estimated-costs-of-uprating-state-pension-in-frozen-rate-countries

I guess that's the answer. In the link they estimate the cost of correcting this gross injustice at GBP630 million in 2022/23.  8) 

(I still pay tax in the UK btw). Pay up you tight sods !!
''If you can't explain it simply, you don't understand it well enough'' - Albert Einstein


Online rdrokit

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Pompui - nice one  ;)

RDRO - "The policy on uprating UK state pensions for overseas residents is that the annual index-linked increases are paid outside the UK where there is a legal requirement to do so. Examples of this are where UK State Pension recipients are living within the European Economic Area or where there is a reciprocal agreement between the UK and the host country that provides for uprating of the UK State Pension.

Around 510,000 recipients of the UK State Pension living overseas do not get State Pension increases – 84% of those live in Australia, Canada and New Zealand
."

https://www.gov.uk/government/publications/estimated-costs-of-uprating-state-pension-in-frozen-rate-countries/estimated-costs-of-uprating-state-pension-in-frozen-rate-countries

I guess that's the answer. In the link they estimate the cost of correcting this gross injustice at GBP630 million in 2022/23.  8) 

(I still pay tax in the UK btw). Pay up you tight sods !!
Thanks for the explanation Roger.



Online Hector

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Jivvy, thank you for an interesting (sort of) link, but there's nothing new here and I doubt you or I will see any change to this iniquitous and unfair policy in our lifetimes.


Online Pompui

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Hector, you are right, no change. I received this email today.



The Government has responded to the petition you signed – “Give U.K. pensioners living abroad increases with parity as those in the U.K.”.

Government responded:

    There are no plans to change the policy. The Government continues to up-rate the State Pension where there is a legal requirement to do so.

    The UK Government has no plans to change the current arrangements for payment of UK State Pension overseas.

    The United Kingdom’s state pension system is primarily designed for the benefit of those who are resident in the UK. It is, however, payable worldwide and is uprated in the UK and also in countries abroad where there is a legal requirement to do so. This is a longstanding policy and has been implemented by successive Governments of all political persuasions for over 70 years. The policy has been the subject of Parliamentary debates over time and has been approved by Parliament and the Courts.

    The rate of National Insurance contributions paid has never earned entitlement to the uprating of pensions payable abroad. This reflects the fact that the UK scheme is primarily designed for those living in the UK. The National Insurance scheme operates on a “pay-as-you-go” basis. Contributions paid into the National Insurance Fund in any year finance contributory benefit expenditure in the same year. A person’s contributions provide a foundation for calculating their future benefit entitlement but do not actually pay for those benefits.

    UK expenditure on health care costs depends on where the UK pensioner settles. While the location may be decided by the pensioner, individual countries have their own immigration policies in relation to older economically inactive people. Paying uprating to UK pension recipients in countries where it is not currently paid would mean an immediate increase in costs.

    There are now around 1.2 million UK State Pension recipients who are overseas residents and around 0.5 million of them do not receive increases. It would cost over £0.6bn extra a year to up-rate these pensions fully, that is to pay the pension at the rate that would be applicable if the pensioner had lived in the UK throughout. Paying future increases only would cost tens of millions in the short term but would lead to the cost of full uprating (£0.6bn) in the longer term as older pensioners died and new pensioners became entitled to fully up-rated state pensions.

    Cost has always been a factor in deciding whether pension increases should be paid in overseas countries and successive governments have taken the view that it would be unfair to impose an additional burden on contributors and taxpayers in the UK to fund increased pensions for those who have chosen to live abroad. The Government concurs with that position. Ultimately, there is a choice for the individual to make where to live, and what the consequences are should that choice be somewhere other than the UK. The rules on uprating the State Pension are clear and well publicised. So the choice to migrate or not remains a choice for the individual. UK State Pensions paid to people living outside the UK also go to people who migrated for economic or other reasons well before they reached pension age.

    Department for Work and Pensions

Click this link to view the response online:

https://petition.parliament.uk/petitions/601821?reveal_response=yes

The Petitions Committee will take a look at this petition and its response. They can press the government for action and gather evidence. If this petition reaches 100,000 signatures, the Committee will consider it for a debate.

The Committee is made up of 11 MPs, from political parties in government and in opposition. It is entirely independent of the Government. Find out more about the Committee: https://petition.parliament.uk/help#petitions-committee

Thanks,
The Petitions team
UK Government and Parliament
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Online Hector

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Thanks for that Pompui!  As expected, alas!  One could pick loads of holes in this governmental bureaucratic answer, which indicates that it is the thought of spending the 0.6 Bn quid a year they have been saving by some of their pensioners who have chosen to live abroad......  I won't go on, but these petitions are dead in the water before they ever reach a Committee stage because of this mindset.  That is, however, not to say that the government shouldn't continue to the pressed on the matter.