Nearly 450,000 elderly British citizens will not benefit from the upcoming increase in the state pension next year. The state pension is expected to rise by 4.7% in April due to the triple lock policy, which ensures that the pension increases annually based on the highest figure among inflation, wage growth, or 2.5%.
Recent data from the Office for National Statistics confirmed a 4.7% increase in average wage growth, while inflation stands at 3.8%. This suggests that the state pension is likely to rise in line with wage growth. However, approximately 453,000 expatriate state pensioners living in countries such as Australia, New Zealand, and Canada will not see this increase due to the absence of reciprocal agreements for yearly pension boosts.
For those whose state pension remains frozen, the rate stays the same as when they first moved abroad and only increases upon returning to the UK. State pension increases are only applicable to individuals living in the European Economic Area (EEA), Switzerland, or countries with social security agreements with the UK, excluding Canada and New Zealand.
If the 4.7% rise is confirmed, the full new state pension will increase from £230.25 to £241.05 per week in April 2026, resulting in an annual increase of over £560. Similarly, the old basic state pension will rise from £176.45 to £184.75 per week. These figures represent the maximum state pension amounts, which may vary based on an individual’s National Insurance record.
To receive the full new state pension, most people need 35 qualifying years on their National Insurance record, with a minimum of ten years required to receive any amount. The Department for Work and Pensions (DWP) administers state pensions.
In summary, the upcoming state pension increase will benefit many retirees in the UK, but certain expatriate pensioners will not be included due to lacking reciprocal agreements. It is essential for individuals to understand the eligibility criteria and requirements for state pension entitlements based on their specific circumstances.