441-02390 (Foreign affairs)

Under the United Kingdom (UK) law, UK State Pensions are paid anywhere in the world. For many UK pensioners living in countries outside the UK, including in Canada, pensions are not adjusted for increases in the cost of living. Pensions are paid at the same rate as when pensioners became entitled, or the date they left the UK if they were already pensioners.

Over the years, the Government of Canada has sought to address this issue with the UK, including by proposing that the two countries negotiate a comprehensive social security agreement (SSA) that would provide for the indexation of UK pensions. To date, the UK has maintained its long-standing position that it cannot consider the indexation of UK pensions paid into Canada.

The UK policy of non-indexation is codified in UK domestic law. A bilateral agreement with Canada is not required if the UK chooses to pay indexed pensions into Canada.

In 2020, the British Secretariat of the All-Party Parliamentary Group (APPG) on Frozen British Pensions launched an inquiry regarding the impact of the UK Government’s approach to UK State Pensions paid to UK pensioners living abroad. The final report was released in December 2020. The Government of Canada presented a submission on the issue regarding the non-indexation of UK pensions paid in Canada, for the APPG’s consideration. The submission is consistent with Canada’s position of support for UK pensioners living in Canada.

In November 2020, Employment and Social Development Canada officials wrote to the UK Government’s Department for Work and Pensions, seeking their interest in concluding a comprehensive SSA between Canada and the UK. UK officials declined the request, but noted that they would continue to consider this matter carefully.

In March 2021, motions were presented in both the House of Commons in Canada and the UK regarding the UK’s non-indexation policy, urging the UK to negotiate a SSA with Canada that would allow for the indexation of pensions. This showcases Canada’s continued support to resolve this long-standing issue.

In June 2021, the former Minister of Seniors, in her capacity as the Minister responsible for concluding SSAs on behalf of the Government of Canada, sent a letter to the UK Secretary of State for the Department for Work and Pensions, to formally request the conclusion of a comprehensive SSA between Canada and the UK, which would provide for the indexation of UK pensions. No response was received from the UK Government.

In April 2022, the Minister of Seniors met with the British High Commissioner to Canada, to reiterate Canada’s longstanding position that UK pensioners who live in Canada should be recognized for the contributions they have made to society and should be treated equally, regardless of where they live. The British High Commissioner re-confirmed that the UK Government had no plans to change its current policy.

In June and October 2022, the Minister of Seniors wrote to the UK Secretary of State for the Department for Work and Pensions to reiterate Canada’s request to conclude a comprehensive bilateral SSA that would provide for the eligibility of benefits and the payment of indexed UK pensions. The UK Minister for Pensions and Financial Inclusion responded to the letter of June 2022, re-confirming that the UK Government had no plans to change it current policy. No response was received from the UK Government to the letter of October 2022.

In April 2023, the Minister of Labour, met with the UK Minister for Employment. Minister of Labour raised the issue of the non-indexation of UK pensions paid in Canada. The UK Minister for Employment noted the concern of the Minister, however, he re-confirmed that the UK Government has no plans to change its current policy.

Also in April 2023, the Minister of Seniors, together with the Minister of Export Promotion, International Trade and Economic Development, wrote to the UK Secretary of State for the Department for Business and Trade, requesting her assistance in encouraging the UK Government to resolve this issue. In January 2024, the UK Government’s Department for Work and Pensions re-confirmed that the UK Government had no plans to change its currently policy.

In November 2023, the Minister of Labour and Seniors, wrote to the UK Secretary of State for the Department for Work and Pensions to reiterate Canada’s request to conclude a comprehensive bilateral SSA that would provide for the eligibility of benefits and the payment of indexed UK pensions, as has been done with the United States and other countries. To date, no response has been received from the UK Government.

The Government of Canada will continue to raise this issue with the UK through various channels, where appropriate.

Under UK law, UK State Pensions are paid anywhere in the world. For many UK pensioners living in countries outside the UK, including in Canada, pensions are not adjusted for increases in the cost of living. Pensions are paid at the same rate as when pensioners became entitled, or the date they left the UK if they were already pensioners.

The UK policy of non-indexation is codified in UK domestic law. A bilateral agreement with Canada is not required if the UK chooses to pay indexed pensions into Canada.

Over the years, the Government of Canada has sought to address this issue with the UK, including by proposing that the two countries negotiate a comprehensive social security agreement (SSA) that would provide for the indexation of UK pensions. To date, the UK has maintained its long-standing position that it cannot consider the indexation of UK pensions paid into Canada.

In 2020, the British Secretariat of the All-Party Parliamentary Group (APPG) on Frozen British Pensions launched an inquiry regarding the impact of the UK Government’s approach to UK State Pensions paid to UK pensioners living abroad. The final report was released in December 2020. The Government of Canada presented a submission on the issue regarding the non-indexation of UK pensions paid in Canada, for the APPG’s consideration. The submission is consistent with Canada’s position of support for UK pensioners living in Canada.

In November 2020, Employment and Social Development Canada officials wrote to the UK Government’s Department for Work and Pensions, seeking their interest in concluding a comprehensive SSA between Canada and the UK. UK officials declined the request but noted that they would continue to consider this matter carefully.

In March 2021, motions were presented in both the House of Commons in Canada and the UK regarding the UK’s non-indexation policy, urging the UK to negotiate a SSA with Canada that would allow for the indexation of pensions. This showcases Canada’s continued support to resolve this long-standing issue.

In June 2021, the former Minister of Seniors, in her capacity as the Minister responsible for concluding SSAs on behalf of the Government of Canada, sent a letter to the UK Secretary of State for the Department for Work and Pensions, to formally request the conclusion of a comprehensive SSA between Canada and the UK, which would provide for the indexation of UK pensions. No response was received from the UK Government.

In April 2022, the Minister of Seniors met with the British High Commissioner to Canada, to reiterate Canada’s longstanding position that UK pensioners who live in Canada should be recognized for the contributions they have made to society and should be treated equally, regardless of where they live. The British High Commissioner re-confirmed that the UK Government had no plans to change its current policy.

In June and October 2022, the Minister of Seniors wrote to the UK Secretary of State for the Department for Work and Pensions to reiterate Canada's request to conclude a comprehensive bilateral SSA that would provide for the eligibility of benefits and the payment of indexed UK pensions. The UK Minister for Pensions and Financial Inclusion responded to the letter of June 2022, re-confirming that the UK Government had no plans to change it current policy. No response was received from the UK Government to the letter of October 2022.

In April 2023, the Minister of Labour met with the UK Minister for Employment. The Minister of Labour raised the issue of the non-indexation of UK pensions paid in Canada. The UK Minister for Employment noted the concern of the Minister, however, he re-confirmed that the UK Government has no plans to change its current policy.

Also in April 2023, the Minister of Seniors, together with the Minister of International Trade, Export Promotion, Small Business and Economic Development, wrote to the UK Secretary of State for the Department for Business and Trade, requesting her assistance in encouraging the UK Government to resolve this issue. In January 2024, the UK Government's Department for Work and Pensions re-confirmed that the UK Government had no plans to change its currently policy.

In November 2023, the Minister of Labour and Seniors, wrote to the UK Secretary of State for the Department for Work and Pensions to reiterate Canada's request to conclude a comprehensive bilateral SSA that would provide for the eligibility of benefits and the payment of indexed UK pensions, as has been done with the United States and other countries. To date, no response has been received from the UK Government.

The Government of Canada will continue to raise this issue with the UK through various channels, where appropriate.