Government branded immoral over pensions of UK citizens in EU
The government will not give a lifetime guarantee to index-link the pensions of British nationals who have retired in the EU if there is a no-deal Brexit, a decision that has been described as “immoral” by campaigners.
The government currently continually increases the payout of the basic state pension by either 2.5%, average wage growth or by the consumer price index, whichever is higher, on a reciprocal basis under EU regulations, a practice known as uprating.
The government has resisted calls for an indefinite continuous uprating for the 222,000 Britons living in EU member states after Brexit, despite the financial hit they have already taken. Since the referendum, the value of the pension, worth up to £130 a week, has decreased by up to 20% because of the collapse in the value of sterling.
The decision will also affect around 240,000 EU citizens who have worked in the UK and are entitled to a British state pension. Under a no-deal Brexit, all pension increases for British nationals in the EU were due to have stopped in March but the government has now said it will continue with the rises, in line with those given to retirees living in the UK, for the next three years.
Read more @The Guardian
