Half a million older people will not be due new State Pension pay rates from April

Millions of people claiming their State Pension can look forward to a bumper income boost this year when payments rise by 8.5 per cent from April 8, 2024. Under the wages growth measure of the Triple Lock policy, those on the full New Sate Pension can expect an annual increase of £902, while those on the full Basic (or Old) State Pension will see an uplift of £692).

However, while the annual uprating will be a welcome relief for more than 12 million pensioners across the UK during the ongoing climate of economic uncertainty, a specific group of nearly 500,000 older people will not qualify for any increase to their payments - even though they have accrued the required amount of National Insurance contributions before taking retirement.

The CEO and founder of one of the world’s largest independent financial advisory, asset management and fintech organisations warned last year that hundreds of thousands of Brits living abroad in retirement are missing out on the annual uprating because their State Pension has been frozen since they moved permanently overseas.

Nigel Green, of deVere Group, said some 500,000 older people will "continue to have their pensions frozen in value at the point of retirement date or date of emigration".

The latest data from the Department for Work and Pensions (DWP) shows nearly 12.7 million people are now receiving the State Pension in Scotland, England and Wales, including 1.1m living abroad. Some 3.2m are in receipt of the New State Pension, which is currently worth up to £203.85 per week, while those on the Basic State Pension receive up to £156.20.

Commenting on the 2023/24 State Pension pay rates, Mr Green said: “An estimated 500,000 retired Brits who live abroad will not receive any boost at all. Outrageously, they will continue to have their pensions frozen in value at the point of retirement date or date of emigration.

“Having a frozen pension means that your retirement income falls in real terms year on year due to inflation - and never has this been more true than as the cost of living has soared.”

Retired expats in the European Economic Area (EEA) will continue to receive annual increases to their State Pensions under the