Ex-pats seek equal pensions treatment

The House of Lords will today hear a case that will influence whether or not the Government will be landed with a bill of £400 million to up rate the pensions of Brits who retired abroad.

Currently pensioners who retire to European Union countries are entitled to a full state pension which rises every year in line with increases in the retail prices index. This annual increase, however, is not available to pensioners who have retired to most commonwealth countries, including Australia and Canada.

The apparent cause of this disparity lies in the reciprocal social security arrangements which make pension up rates available in the EU and the US, but not to those in all but five Commonwealth countries.

If the government is made liable for indexation increases to all pensioners abroad, a further 540,000 pensioners would be made eligible for up rated pensions.

Lawyers representing Annette Carson, whose case will be heard today, said on Guardian Unlimited that the "present discrimination against roughly half of the overseas pensioners group is morally indefensible".