Many British senior citizens will welcome an 8.5% rise in the UK state pension on April 1.

But half a million overseas pensioners, many living in territories such as the Falkland Islands and nations like Canada, will miss out again as they live in a country without a reciprocal social security agreement with the UK, the End Frozen Pensions campaign has said.

For these pensioners, payments are “frozen”, and fall in real terms year on year.

The latest increase in the basic state pension of £169.50 a week and new state pensions of £221.20 a week, would mean that a “frozen pensioner,” who has made the full contributions, would miss out on £3,085.16 if they retired in 2013, and £4,785.56 if they stopped working in 2003.

But if they retired in 1993, they would be losing £5,895.76, according to calculations by the campaign group.

It describes the policy as a “cruel postcode lottery”.

The loss rises to £7,042.36 if a person quit the workplace in 1983.

And Sheila Telford, left, chair of the International Consortium of British Pensioners, said: “This morally bankrupt policy is leading to many having to make impossible choices or rely on handouts.”

A 98-year-old war veteran, who served in all three branches of the Armed Forces, has lost more than £46,000 since 2001 due to the “frozen” pensions scheme.

Anne Puckridge, who moved to Canada in 2001 to be closer to her family, has found her pension has remained at the 2001 rate despite making the maximum contributions.

Had Anne stayed in the UK or moved to an unaffected country or territory, she would be set to receive an uprated state pension of £169.50 per week.

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But this year, she has lost £5,042.96. She said: “For frozen pensioners, this is another kick in the teeth and further reinforcement people like me simply do not matter to politicians in Westminster.”

“Having served my country and paying the same national insurance contributions as my fellow British pensioners, to be excluded from pensions increases and cast aside is as insulting as it is indefensible.”

“To be punished for moving closer to my children, denied the pension I paid for and was promised and deserve leaves me embarrassed to be British and ashamed of a Government content to penalise rather than protect pensioners.”

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