State pension payments could hit more than £200 a week – but 520,000 set to miss | Personal finance | Finance

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State pension payments have undergone a temporary change this year as the triple lock was removed due to distorted earnings data. A double lockdown has been put in place instead, with a 3.1% increase guaranteed in the 2022/23 tax year, but a one-off increase is expected when triple lockdown returns next year .

Inflation is rising and should reach 13% by the end of the year.

It is increasingly likely that the inflation figure recorded in September 2022 will be used to calculate pension increases – and it will probably be in the double digits.

However, some will miss out on this substantial increase due to a historical rule that affects those who live in certain locations.

State pension increases are only guaranteed for people living in:

  • Great Britain
  • European Economic Area (EEA)
  • Gibraltar
  • Swiss
  • Countries that have a social security agreement with the UK – but not Canada or New Zealand.

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The campaign said on Twitter: ‘Having contributed to National Insurance throughout their working lives, these pensioners now face poverty and hardship.

“The UK has historic social security agreements with a range of countries covering annual pension increases. This results in an arbitrary postcode lottery.

“Because they have moved overseas, often to be with family, these pensioners have now lost thousands of pounds in pension payments.”

The government, however, insists the issue of state pension freezes in some overseas locations dates back “over 70 years”.

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A DWP spokesman previously told Express.co.uk: ‘This year we will be spending over £110billion on the state pension and our priority is to ensure that every pensioner receives all the support funding to which he is entitled.

“We understand that people go abroad for many reasons and we provide clear information on the impact this can have on their finances.

“We continue to increase state pensions overseas where required by law.”

When it comes to increases in state pensions, the inflation news could be good for those actually benefiting from the increase.

The new state full pension is currently worth £185.15 a week, so if inflation is recorded at 10% in September – which seems likely – that would mean an extra £18.15.

This would increase the current rate to around £203.70 per week for those receiving the full amount.

The state’s basic full pension is currently £141.85 a week, and a 10% increase would mean it would rise to £156.05 a week.

Typically, 35 years of national insurance contributions are required to unlock the new full state pension, with 30 years for the full state pension.

Some may receive less than the new full state pension if they were contracted before April 6, 2016.

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