The Adelphi, 1-11 John Adam Street
London, WC2N 6HT
Our ref: TO/03/10989

Dear Sir

Thank you for your further e-mail of 9 June regarding the non payment of State Pension increases to people living overseas.

As you may now know, the Court of Appeal's judgement was given today, again finding in favour of the Department. This decision further confirms the Department's understanding that the Government is not obliged to uprate State Pensions where it has no legal obligation or reciprocal agreement to do so.

The Court of Appeal also said that Ms Carson must bear the costs of the case. The Court did not give Ms Carson leave to go the House of Lords, however, Ms Carson can apply to the House of Lords for permission to appeal if she wanted to take the matter forward.

As I have previously explained, the UK social security scheme is primarily designed for those living in the UK. Current estimates show that it would cost around £400 million a year fully to unfreeze the State Pensions paid to UK pensioners overseas to bring them up to the rate paid to State Pensioners living in the UK, and successive governments have taken the view that it would be unfair to impose an additional burden on contributors and taxpayers in the UK to fund additional State Pension for those who have chosen to live abroad.

Although I appreciate that you will continue to disagree with the policy, I am afraid that there really is nothing further that I can say to you, and I therefore see little point in continuing to correspond on this matter.