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Up to a quarter of a million Australian residents are hoping Brexit could help them in a long-running dispute over frozen pensions.
Key points:
- British pensions indexed for residents of many countries around the world
- Australia and Canada among a small number of countries where pension is frozen
- British retirees in Australia hoping Brexit could change government's attitude
For more than 70 years, the UK has refused to index pensions for retirees living in Australia, a policy many, including the Federal Government, consider to be unfair and discriminatory.
Leading a new campaign to unfreeze UK pensions is Harry Potter actor Miriam Margolyes who now lives in Australia.
"I think it's something like 250,000 people in Australia who are not getting a fair suck of the sauce bottle," she told 7.30.
Pension frozen at £17 a week for 40 years
Ms Margolyes has just finished performing a season of the play The Lady in the Van in Melbourne.
She is now switching roles from a destitute English woman to a champion for the Australian fair-go.
"I'm not one of the people who are suffering, but I know plenty who are," she said.
"These people have paid into the pension scheme in England, and they should get it back now."
Ms Margolyes is representing people like Valerie Rumball's mother, Dela Wilmott.
When Ms Wilmott migrated to Australia in the late 1970s, her pension was frozen.
The 97-year-old was receiving the same amount when she died last year.
"It was still 17 pounds [a week]," Ms Rumball explained.
"It costs me $35 a night to put my dog in kennels, which is about the same amount. Which is not good, is it?"
'Unfair, completely immoral and totally unequal'
The UK only indexes pensions for emigrants living in countries that have signed a bilateral social security agreement.
It means retirees living in the Philippines, the United States or within the European Union can enjoy a fully indexed pension, but if they choose to live in places like Canada or Australia, the pension is frozen.
"This is totally unfair, completely immoral and it's totally unequal," Jim Tilley from advocacy group British Pensions in Australia said.
"It is discrimination, because people in some countries are paid indexation and some people aren't."
With Brexit looming, the policy is about to be put under the spotlight.
Up to half a million UK pensioners currently living in the European Union could in theory also have their pensions frozen if Britain leaves the EU without any formal agreement.
The UK Government has indicated it will negotiate a deal to ensure those pensioners are not penalised, raising hopes of a breakthrough in Australia.
The Federal Government in Australia has already indicated it is willing to talk.
"Australia must reassess many aspects of its bilateral relationship with the UK," a Department of Social Security spokesperson said.
"[Brexit] presents an opportunity to engage the UK on a range of matters."
'It feels like I'm being defrauded'
UK retiree Derek Woodall came to Australia with his wife six years ago to join his children and grandchildren and is certain "Brexit will help".
"Brexit is going to highlight the problem a lot closer to home," he said.
Mr Woodall needs to drive an Uber five days a week to earn a little extra money, because his British pension is slowly losing value.
"Maybe fraud is too strong a word, but that's the way it feels," he said.
"It feels like I'm being defrauded of something I'm entitled to."
Retired doctor Don Ingham has seen his UK pension effectively halve in value since he came to this country with his Australian wife in 1970.
He has to rely on a full Australian pension.
"It is cost-shifting," he said.
"The Australian Government picks up the difference between my non-indexed pension and what it should be.
"We expats have contributed to these pensions through the national insurance scheme, we've paid our dues there, and we're simply not getting what we've paid for."
Margolyes said the time was right to put more pressure on the British Government.
"What I hope to do is to make such a fuss and draw such attention to it that they are squirming with embarrassment," she said.
Topics: world-politics, australia, united-kingdom
First posted