The three year State Pension up-rating guarantee was part of the Government’s no deal preparations. The Withdrawal Agreement has now been ratified.
Under the terms of the Withdrawal Agreement, UK state pensioners living in the EEA or Switzerland by 31 December 2020 will have their state pensions increased annually as long as they continue living there.
Currently, the basic state pension and amounts of new state pension up to the full rate are increased in line with the “triple lock” mechanism, which ensures they will rise each year by the highest of either 2.5 per cent, the rate of price inflation or average earnings growth.
People will get their state pensions up-rated in the EU even if they claim their pension on or after 1 January 2021, as long as they meet the UK state pension qualifying conditions and are covered by the Withdrawal Agreement.
The position of those who do not fall within the scope of the Withdrawal Agreement will be covered by the future relationship with the EU, which is yet to be negotiated.