An estimated half a million pensioners who moved abroad to certain countries in retirement have been impacted by frozen pensions. While the state pension in the UK increases each year by at least 2.5 percent, these pensioners living overseas do not receive any annual uprating to their income.

This means if the cost of living rises where they live, their state pension may be losing value in real terms every year.

The campaign group End Frozen Pensions has stated there are more than 520,000 people who have seen their state pension stuck in place.

A video produced by the group allowed some such pensioners to tell their stories, including people living in Canada, Australia, Malaysia, Thailand and South Africa.

Many of these ‘frozen pensioners’ moved abroad to be closer to their children or grandchildren, and are now paying the price.

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Francis, 75, who lives in Australia, said: “My pension, since 2016, remains frozen unlike many other Britons living in the UK and in certain selected countries.

“While the cost of living has been increasing each year, my pension payments remain unindexed, causing financial hardship for me and my family.”

The full new state pension is worth £179.60 at present, with the full basic state pension valued at £137.60.

However, Margaret, 84, gets just £24 a week from her state pension because she lives in Australia, so her amount has been frozen for 23 years.

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She said: “When I first received my pension, it fed me. It does not feed me now. The UK Government should treat all it’s pensioners the same, regardless of where we live.”

Britons must pay National Insurance contributions in order to qualify for the state pension, with up to 35 years’ worth needed to get the full amount.

James, 72, said he finds the frozen pensions issue “very difficult and rather unfair, because I paid all those years into National Insurance”.

Many pensioners have also complained they were not warned in advance that their pension would be frozen by moving abroad.

Most Commonwealth countries do not receive an annual uprating, despite their historical links to the UK.

John, who resides in Canada said: “I receive a state pension from the UK Government of £80 a week. It’s already lost a quarter of its value.

“If I only were to move about 200 miles further south and cross the US border, my pension would be fully indexed.”

A petition has been set up by End Frozen Pensions, which has been signed by 18,497 people so far. The petition calls on the Government to end the practice of freezing the state pension overseas.

A DWP spokesperson said: “We understand that people move abroad for many reasons and that this can impact on their finances. There is information on GOV.UK about what the effect of going abroad will be on entitlement to the UK State Pension.

“The Government’s policy on the up-rating of the UK State Pension for people living overseas is a longstanding one of more than 70 years and we continue to uprate state pensions overseas where there is a legal requirement to do so.”

A DWP spokesperson said:

“We understand that people move abroad for many reasons and that this can impact on their finances. There is information on GOV.UK about what the effect of going abroad will be on entitlement to the UK State Pension.

“The Government’s policy on the up-rating of the UK State Pension for people living overseas is a longstanding one of more than 70 years and we continue to uprate state pensions overseas where there is a legal requirement to do so.”