Expat loses pension increase case

Annette Carson lost her case in the House of Lords

A case that could have led to a rise in the pensions of nearly half a million Britons who retired abroad has been rejected by the House of Lords.

Annette Carson, who emigrated to South Africa in 1989, wanted her state pension to rise in line with prices.

However, the judge described Ms Carson's claim as "unjustified."

UK expats living in the EU have their pensions increased while those living in some Commonwealth countries have their pensions frozen.

Some expats may be thrust into poverty by this decision Age Concern spokeswoman

After emigrating, Mrs Carson continued to make full contributions to her UK state pension and, on retirement in 2000, began to receive pension payments.

But since then the UK authorities have refused to increase the level of payments, and Ms Carson's pension has been frozen at £67.50 a week.

The judge in the case, Lord Hoffmann, said that, as the law stood, it would remain frozen.

He added her sense of grievance "may be understandable, but it is not justified".

Bilateral agreements

Ms Carson is among an estimated 490,000 British pensioners who live overseas and have had their pensions "frozen" at the rate that they were first paid abroad.

WHERE ARE PENSIONS FROZEN? Australia Canada Hong Kong South Africa Zimbabwe New Zealand Trinidad & Tobago

Under bilateral agreements with countries including US and EU members, the government has upgraded pensions for British people who retire there.

But social security agreements with other countries such as Canada, South Africa and Australia were drawn up much earlier, in the 1950s, before inflation became such an important issue.

Critics of the current system believe it is an unfair lottery - and penalises people who have paid national insurance contributions all their working lives.

It can mean some of the oldest pensioners in mainly Commonwealth countries are left on a basic pension as little as £7 per week - less than a tenth of the current level.

"The result of this case is disappointing, it means that you can retire to one country and have your pension uprated but not to another," a spokeswoman for Age Concern told BBC News.

"Some expats may be thrust into poverty by this decision."

Ms Carson first brought her case in 2002 but lost. In 2003 she won the right to appeal against the decision in the House of Lords.