16 March 2010
More than half a million UK pensioners living overseas will
continue to have their state pensions frozen after a European court
decision.
Pensioners who moved to countries such as Australia and Canada
only receive the level of state pension at retirement.
The European Court of Human Rights rejected an appeal from a
group of pensioners by an 11 to 6 majority.
The group wanted to receive increases in line with inflation and
the decision has saved the government at least £500m a
year.
The expatriate pensioners say they have been fighting "tooth and
nail" against the UK government in an eight-year court battle.
Inflation proofing of the UK state pension applies to UK
pensioners who live in the European Economic Area or in 15 other
countries, but not in some Commonwealth states.
