Henry Pike (Bowman, Liberal National Party) Share this | Hansard source

More than 200,000 Australians, many living within my electorate in the Redlands, spent part of their working lives in the United Kingdom. They contributed to the system, they paid their national insurance contributions and they earned the British state pension. Unlike the Australian age pension, the British state pension functions more like a superannuation scheme. It is an entitlement purchased through years of compulsory contributions made by workers and their employers. Yet, for those who choose to retire in Australia, that entitlement is frozen at the moment that they receive it. There is no annual increase, no inflation adjustment and no recognition of rising living costs—nothing. A pension that might start at 155 pounds a week in 2016 stays at 155 pounds forever. Over time, it's not just inconvenient—it's devastating. In real terms, many retirees have seen the value of their pensions cut in half.

What makes this even more unjust is that this policy is not applied universally. Pensioners living in the United States, across Europe and in six other Commonwealth countries have their payments automatically indexed every year. But Australians, who are among Britain's most loyal, longstanding and dependable partners, are singled out for inferior treatment by having their pensions frozen. Bernie from Alexandra Hills wrote to my office about this. He left home at the age of 16 to serve in the British army, where he served for 11 years before emigrating to Australia. He went on to serve for 20 years in the Queensland Police Service. When he turned 65, he claimed a part British pension. He was given 45 pounds a week at the age of 65, and that is exactly what he's on today at the age of 80.

This is not only unfair for the individuals who earned these pensions; it's also costly to Australia. As their frozen pensions fail to keep pace with living expenses, many of these retirees must rely more heavily on our own social support systems. Our government estimates that Britain's frozen pension policy costs Australian taxpayers over $100 million every year. For these reasons, this issue is something that the federal government should be taking up directly with the United Kingdom government at every opportunity. I certainly took the opportunity recently, when a UK parliamentary delegation was here, to raise some of these issues with them. It is discrimination, plain and simple. It is unacceptable and not the way for a friend to treat the people of a nation that has stood beside them in war, in peace and in partnership. These Australians deserve far better. My heart goes out to many British people who are mourning their cricket team's loss earlier this week, but can we say this simply is not cricket It is not fair and it is not a way to treat a loyal and longstanding friend.

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