§ Mr. Nigel EvansTo ask the Secretary of State for Social Security if he will publish the Government's response to the Third report of the Social Security Committee, "Uprating of State Retirement Pensions Payable to People Resident Abroad" (HC 143 of Session 1996–97). [21424]
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§ Mr. LilleyThe Government welcome the Committee's report, which focused on the long-standing policy of uprating UK state retirement pensions when paid abroad in specific countries. The report is an important and useful study.
The report contained one recommendation:
That there should be a free vote at prime time to allow Members to express their opinion on the principle of whether the Government should pay upratings to some or all of those pensioners living in countries where upratings are not paid at present".Whipping arrangements are a matter for the business managers of all parties. The Government note that the House had the opportunity to debate the uprating of pensions paid abroad during the passage of the Pensions Bill in July 1995. Over 200 hon. Members voted on amendments aimed at providing uprating increases, which were heavily defeated.
The Committee's report rightly recognises that priorities for public expenditure will inevitably be taken into account in considering the issue. Almost £1 billion a year is paid to UK pensioners abroad. It would cost another £250 million a year to bring frozen pensions up to the rate that would be paid if the pensioner were in the UK.