Employee reward and benefits news
European ruling 'hurts British pensioners'
A test case being carried out by the European Court of Human Rights has ruled that the UK's lack of update for pension payments in line with inflation to British expats living in 150 countries can continue.
This means that half of Britain's 1.1 million pensioners living overseas - with the lion's share being in Australia and Canada - who have already seen the value of their pensions fall will continue to have such problems in the foreseeable future.
Mark Bodega, director at currency broker HiFX, said that the cost of living for expats who are receiving a fixed income in sterling has shot up over the last few years due to the wholesale depreciation of the currency.
He continued: "So this ruling that their income will not rise in line with inflation as it does for pensioners in the UK is a double blow for hundreds of thousands of pensioners who are already struggling".
The US dollar is one of the currencies gaining most ground on sterling, going from over two dollars to the pound to 1.477 this month.
Posted by Elizabeth Mewes
