State pensioners are considered a "priority" for the Department for Work and Pensions (DWP) despite 60,000 veterans losing out on annual payment rate increases, a Labour minister has claimed.
Pensions Minister Torsten Bell has doubled down on the Government's support for retirees, however campaigners are sounding the alarm over the long-term impact of "frozen pensions".
Every year, older Britons receive an annual payment rate rise to their state pensions thanks to the triple lock, which has been in place since 2010.
Under this mechanism, state pension payments are raised by either the rate of inflation, average wage growth, or 2.5 per cent; whichever is highest.
State pensioners 'priority' for DWP despite 60,000 veterans losing payment boost, Labour claims
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Despite this yearly boost, an estimated 500,000 British expats are not entitled to this payment increase, with some being on the state pension from decades ago.
This policy is commonly referred to as "frozen pensions" and primarily impacts those moved to live in certain countries that have no reciprocal agreement with the UK.
Among those nations are countries such as Canada, New Zealand, Thailand, and South Africa, with activists urging Governments to reach a new agreement as soon as possible.
In response to a question from another MP, Mr Bell outlined what the DWP has done to mitigate the impact on retirees impacted by the "frozen pensions" policy.
How the state pension triple lock has changed over the years | GB NEWS / FIDELITY INTERNATIONAL LATEST DEVELOPMENTS
How much will the state pension triple lock cost the British taxpayer? | OBR He shared: "The UK's policy on the uprating of the UK state pension for recipients living overseas is a longstanding one.
"The UK state pension is payable worldwide without regard to nationality and is uprated abroad where we have a legal requirement to do so.
"This approach has been supported by successive governments, over many years, with priority given to those living in the UK when drawing up expenditure plans for additional pensioner benefits."
Once someone moves to a country that does not have a reciprocal pensions agreement with the UK, the Government is no longer obligated to award triple lock rate hikes.
Campaigners delivered an End Frozen Pensions report to Downing Street in 2023 | END FROZEN PENSIONSCampaigners have claimed that 86 per cent of British expats impacted by "frozen" payments did not know their state pension would impacted.
According to the End Frozen Pensions campaign, this has resulted in some expat retirees receiving as little as £20 per week, whereas someone on the full, new state pension £241.30 weekly.
In a statement, the campaign shared: "Many of these pensioners have committed their working lives to British society, including over 60,000 veterans and many civil servants.
"The frozen pensions policy is a political choice and an accident of history. It could be ended unilaterally by the UK through domestic legislation."