Pensions: British Pensioners Overseas

Debate between Lord Freud and Baroness Scotland of Asthal

Wednesday 11th March 2015 Lords Chamber

[Lord Freud]

The reason for those differences in Caribbean countries and elsewhere is that we have historic bilateral agreements. Interestingly, to pick the Canadian example, no Canadian pensions were paid in the rest of the world when we were looking to do a bilateral in the 1960s. That is the reason that we do not have one today with the Canadians.

[Baroness Scotland of Asthal (Lab)]

My Lords, is there not a difficulty because, while I accept that there has been an iterative process over time, what we now have is a situation of fundamental unfairness? A number of British citizens who worked in this country all their lives, making a considerable contribution, are going to be treated differently if they choose to return to the countries of their birth. For example, if someone from the Caribbean was, happily, a Barbadian or a Jamaican, they would be treated in one way; if they were not, they would be treated in another way. Does the Minister not think that there is now absolute necessity for us to address this unfairness, as opposed to allowing it to continue?

[Lord Freud]

My Lords, bluntly, this is about money. The approach in this policy has been in place for 60 years —effectively, the current structure dates from 1955—and, as far as I am aware, during the discussion that we had on this during the passing of the Pensions Act 2014, both the Government and the Opposition confirmed that they had no desire to change current arrangements.