§ Lord Colytonasked Her Majesty's Government:
What considerations determine decisions to negotiate reciprocal social security agreements with foreign and Commonwealth countries; and in particular on what factors they base their refusal to agree to provisions for unfreezing national retirement pensions in some countries and not in others, having regard to the fact that in all such cases pensioners have paid their appropriate national insurance contributions before leaving the United Kingdom.
§ Lord Cullen of AshbourneThere are normally three main criteria for deciding whether to negotiate a reciprocal social security agreement with another country. The first is whether the other country has a social security scheme which is compatible with that of the United Kingdom. Second, whether the amount of movement, involving social security issues, of people between the two countries concerned justifies the making of a formal treaty. Third, whether the cost of an agreement can be accepted, bearing in mind the many other competing demands on public expenditure. The last point is particularly important in relation to the question of unfreezing the rates of pension payable to persons abroad in the other country. The cost of uprating increases is met from current income from contributors in this country and not from past contribution income.