Expats lose appeal on pensions

Judges in Strasbourg ruled yesterday that denying index-linked pension rises to many who have chosen to settle abroad did not breach their human rights.

The verdict ended years of courtroom wrangling in which 13 retired expatriates took on the Government and lost at each legal stage.

Under Government rules pensioners who retire abroad only get state pension increases in line with inflation if they live in countries with reciprocal arrangements – the other 26 European Union countries, plus the United States, Switzerland, Iceland, Norway, Turkey and Liechtenstein.

"Up-rating" of the state pension does not apply to those settling in Canada, South Africa, Australia or New Zealand.

The 13 in the test case live in Canada, South Africa and Australia.

Original legal claims were rejected in the High Court, the Court of Appeal and the House of Lords.

A subsequent claim in the European Court of Human Rights in Strasbourg was also lost.

A ruling in favour of the pensioners would have meant significant pension rises for more than 500,000 retired expatriates.