§ Earl Russellasked Her Majesty's Government:
How and when it came about that British subjects resident in former Yugoslavia are entitled to annual uprating of their state pensions while British subjects resident in Canada are not; and what is the logical principle which justifies the difference between the treatment of British subjects to former Yugoslavia and those in Canada. [HL12]
§ The Parliamentary Under-Secretary of State, Department for Work and Pensions (Baroness Hollis of Heigham)UK state pensions are uprated for pensioners living in the former Federal People's Republic of Yugoslavia under the bilateral social security agreement with that country which has been in force since 1958. Following the break up of the former Yugoslavia, the agreement has continued to be applied to the now separate independent republics: the Federal Republic of Yugoslavia (Serbia-Montenegro); Bosnia-Herzegovina; Croatia; Slovenia and the former Yugoslav Republic of Macedonia. The agreement provides that where a person would be entitled to a benefit which is covered by the agreement while in or resident in one country, it shall be payable to that person while he or she is in or resident in the territory of the other. This would include any annual uprating of benefits.
The UK has a social security arrangement with Canada, which first came into operation in 1960. It is limited in scope and is not reciprocal. Its provisions are limited soley to helping people coming to the UK from Canada to qualify for UK benefits by allowing periods of residence in Canada to be treated as periods when UK contributions had been paid in claims for UK benefits made after arrival here. It does not allow for 26WA the payment of Canadian benefits to former Canadian residents living in the UK or to former UK residents now living in Canada.
The difference in treatment is therefore based on the terms of agreement entered into between the respective governments.