Jim Shannon

It is a pleasure to serve under your chairship, Mr Dowd. I thank the hon. Member for Farnham and Bordon (Gregory Stafford) for introducing this debate and for putting his case so well on a subject that has been brought to the House’s attention on numerous occasions, both in Westminster Hall and in the main Chamber. There are several people in the Public Gallery today who have been involved in the campaign; we thank them for all their correspondence to ensure that we can follow the campaign on behalf of so many British people. Just last week, I was working on some cases in my office. These issues occur regularly, as the hon. Member for West Dunbartonshire (Douglas McAllister) said. As we are all aware, the Government’s policy on freezing state pensions for British pensioners living overseas affects some half a million pensioners and is fundamentally unfair. I believe that it is morally unfair, because it penalises pensioners who have earned their state pension through decades of national insurance contributions. They have done the same as everybody else and have paid national insurance contributions and tax. They made a contribution to the society that they lived in. Today they are being penalised, and it is grossly unfair. People who have worked for their entire life in United Kingdom of Great Britain and Northern Ireland are being denied the annual pension increases granted to UK residents simply because they chose to retire abroad, often to be closer to family. As they get older, they want to support their family, but their family also want to support them, so there is a physical necessity. People want to make the most of their savings elsewhere, as anyone is entitled to do. For example, a pensioner in Australia or Canada, where pensions are frozen, might receive some £7,000 annually, while UK-based pensioners get more than £11,000 annually as a result of triple-lock upgrading. There is a real differential and a real problem to be addressed. Over time, inflation diminishes the value of frozen pensions, pushing some expat pensioners into poverty. That has an impact not just on them, but on the countries in which they now live. In extreme cases, pensioners have reported surviving on pensions worth less than £20 a week in real terms. Nobody could survive on that—it is impossible. We ask the Minister to give us some support and give us something to tell our constituents and their families. The freeze is fundamentally unjust. It penalises pensioners who have earned their state pension through decades of national insurance contributions. I think of Anne Puckridge, a 100-year-old world war two veteran who served in all three branches of our armed forces decoding messages during the war. After working in the UK until the age of 76, way beyond her pension years, and paying all her taxes and national insurance, she moved to Canada in 2001 to be near her daughter. Her daughter wanted her to be there, and she wanted to support her daughter. Her pension was frozen at £72.50 per week, rather than the £169.50 she would receive in the United Kingdom of Great Britain and Northern Ireland, which has resulted in an estimated loss of £60,000 over 23 years. When Mrs Puckridge notified the Department for Work and Pensions of her move, she was not informed that her pension would be frozen. At no stage was it intimated to her, “Look, if you go there, this is going to happen.” Because of that false pretence—because it did not disclose the full facts of the case—I believe that the DWP stands accused in the moral court of law for how it treated this lady. She only discovered the situation when her first expected increase did not arrive. She stated: “It’s the injustice of it that is so unfair, the fact that we were never warned.” They were never told. That is disgraceful. As other hon. Members have said, the widespread lack of transparency is reminiscent of the lack of transparency with WASPI women. The all-party parliamentary group on frozen British pensions has reported that nearly 90% of all affected pensioners were unaware of the policy before moving. Given that those half a million British pensioners have paid into the national insurance system throughout their working life, does the Minister consider it fair to deny them the annual pension increases that residents of the United Kingdom receive? An especially important factor is that the affected pensioners are not adding to the pressures on public services such as the NHS on their retirement. When people get to 79 or 80, their impact on the national health service will be greater. They may have complex needs. Their age is agin them. Very clearly, their dependence on the NHS at that stage is much greater. If we take that out of the equation and they go to Canada, America or Australia, there is a real saving to the NHS. There will be no prescriptions either. I speak as someone who takes 14 tablets a day just to stay alive; most of them have to do with diabetes, but that is by the way. If someone is saving the NHS all that money, is only right that that be considered in the financial equation. The findings in the 2020 inquiry report of the APPG on frozen British pensions indicate that the policy affects war veterans and even some members of the Windrush generation, who have returned to their country of birth but now face economic hardship as a result of this policy. The Windrush generation caught the imagination of this great nation. I became aware of their case through being an MP, and it is a really justifiable one. They are now being penalised if they decide to go back home to be close to their families, having come here, worked all their days and paid their national insurance contributions and taxes. As the current policy is leaving expat British pensioners having to return to the UK, I ask again whether the Minister will conduct a cost-benefit analysis to assess whether ending the freeze might reduce long-term costs by preventing the need to repatriate. The cost factor is of such magnitude that a review might persuade the Government to ensure that expatriates get their pension. The freeze is also morally indefensible. It punishes a perfectly valid legal choice to live abroad, and it ignores the contributions that these pensioners made to the economy and to our society. Many moved abroad with a reasonable expectation that their pension, a right earned through years of work, would retain its value. The arbitrary distinction between countries with and without an operating agreement lacks logics and smacks of red tape and bureaucracy gone mad: pensions increase in the US but not in Canada or Australia, for example. We always used to blame the EU for bureaucracy. We might blame it again, of course; later today I presume that we will have a statement in the Chamber on the UK-EU deal, so we will have a chance to go over the past once again. I support the APPG’s recommendations. It is time to end the frozen pension policy and provide full uprated pensions to British expat pensioners as soon as possible. I believe that that stance is supported by evidence from the Governments of Australia and Canada, with which we have a good working relationship. Has the Minister had the opportunity to talk to the relevant Ministers in those Governments? It is not that they are telling the UK what to do, but I understand that they have suggested that we may need reform. If the Minister has had the opportunity to talk to them, what has come out of those talks? It is unjust to penalise pensioners for living abroad when they have paid into the system like everyone else. By uprating pensioners globally, the UK would honour its moral and economic obligations and ensure that members of the post-war generation that rebuilt Britain can retire with the security that they deserve, wherever they choose to live. Today is an opportunity to make that request and that plea again, and to ask our new Minister to look at the issue in a positive way and consider all the cost factors. There are many things in the pot that should be looked at once again.