Thank you for contacting me about increases in the State Pension for those living abroad.
The UK State Pension is payable worldwide and is uprated abroad where there is a legal requirement to do so. In most overseas countries, however, there is no agreement with the UK for securing the social security rights of people moving between the two countries. As a result, pensioners who move to these countries still receive the State Pension but do not have their payments uprated as UK residents do. The Department for Work and Pensions endeavours to make this clear to those thinking of moving abroad and publishes guidance on its website.
I appreciate this is not what you wanted to hear, but I hope this helps explain why the situation is as it is.
Since 1 January 2022, it is no longer possible to count periods living in Australia (pre-1st March 2001), Canada or New Zealand, towards calculating your UK State Pension if you are a British national, EU or EEA citizen or Swiss national and you move to live in the EU, EEA or Switzerland on or after 1 January 2022. This includes people who move to live in another EU, EEA country or Switzerland on or after 1 January 2022.
Under the terms of the Withdrawal Agreement, UK state pensioners living in the EEA or Switzerland by 31 December 2020 have their State Pension increased annually as long as they continue living there. I welcome that State Pensions are uprated in the EU even if claimed on or after 1 January 2021, as long as the pensioners meet the UK State Pension qualifying conditions and are within the scope of the Withdrawal Agreement.
Thank you again for taking the time to contact me.