Increases to the state pension - residents & ex-pats

Summary

The request sought a five-year breakdown of basic state pension increases for Isle of Man residents and expats in Spain and South Africa. The Treasury disclosed that pension increases apply to residents in the Isle of Man and Spain under social security agreements, but explicitly stated they do not apply to residents in South Africa.

Key Facts

• Pension increases are determined annually using the UK 'triple lock' guarantee (CPI, average earnings growth, or 2.5%).
• Increases apply to residents in the Isle of Man and countries with social security agreements like Spain.
• Pension increases are not applicable to persons resident in South Africa.
• Increases take effect from the week commencing the Monday immediately following 6th April each year.
• The response covers the period from April 2014 to April 2018.

Data Disclosed

• 2018: 3.0% increase, £3.65 per week
• 2017: 2.5% increase, £3.00 per week
• 2016: 2.9% increase, £3.35 per week
• 2015: 2.5% increase, £2.85 per week
• 2014: 2.7% increase, £2.95 per week
• Reference number: 544133
• Date received: 20th July 2018
• Response date: 17 August 2018

Original Request

Please provide a breakdown over the last 5 years (financial or calendar, whichever is easiest) of increases to the state pension for Isle of Man residents and for pensioners resident outside the Isle of Man. If possible, please provide the reason for the increase, e.g. RPI, CPI, rising cost of living.  Clarification - my request relates to the basic state pension only. Please provide increases for the Isle of Man, Spain and for South Africa. With kind regards

Data Tables (1)

Full Response Text

Freedom of Information Seyrsnys Fysseree

The Treasury Government Office, Douglas Isle of Man, IM1 3PU

Telephone: (01624) 685605 Email: FOI.Treasury@gov.im

Government Website: www.gov.im

Our ref: 544133 17 August 2018

Dear ###

We write further to your request which was received on 20th July 2018 and which states:

"Please provide a breakdown over the last 5 years (financial or calendar, whichever is easiest) of increases to the state pension for Isle of Man residents and for pensioners resident outside the Isle of Man. If possible, please provide the reason for the increase, e.g. RPI, CPI, rising cost of living. We sought clarification from you regarding your definition of the state pension, to which you replied as follows; “Clarification - my request relates to the basic state pension only. Please provide increases for the Isle of Man, Spain and for South Africa.”

Response The Table below shows the increases in the Isle of Man basic state pension - in both percentage and monetary terms – in each of the last 5 years The rates of basic state pension are increased each year from the week commencing on the Monday immediately following the beginning of the new tax year (6th April).
For example, the increase this year is from the week commencing 9th April 2018. However, in the table below, for simplicity’s sake, the relevant column is headed “From April”, rather than providing the exact date for each of the years. Subject to the comments made in the following paragraph:- • the percentage increases shown in the table are applicable to all basic pensions;

• the monetary amounts shown in the table are based on a 100% basic pension. People entitled to “pro-rata” pensions, that is basic pensions of less than 100%, would receive pro-rata increases accordingly. The increases shown in the table are applicable to persons resident in the Isle of Man. They are also applicable to persons resident in the United Kingdom or in certain other countries which have a social security agreement with the UK to which the Isle of Man is joined and which provides for state pension uprating, including Spain. They are not applicable to persons resident in South Africa. However, if a person who is resident in South Africa subsequently takes up residence in the Isle of Man, the United Kingdom or any other country which has a social security agreement with the UK to which the Isle of Man is joined which provides for state pension uprating, including Spain, the increases would be applicable to them but only from the date they take up residence in one of those countries. Table Increase From April % GBP (£) per week 2018 3.0 3.65 2017 2.5 3.00 2016 2.9 3.35 2015 2.5 2.85 2014 2.7 2.95 In each of the years shown in the table, the increase in the basic state pension was determined in accordance with the same “triple lock” guarantee as applied in the UK. Under the “triple lock” the pension is increased by the higher of: the UK consumer prices index (CPI), average earnings growth in the UK or 2.5%. Please quote the reference number 544133 in any future communications.

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Yours sincerely