Thank you, Madam Chair and honourable members of the Standing Committee on International Trade, for the opportunity to provide you with testimony today.
The Canadian Alliance of British Pensioners supports strong trade relations between Canada and the United Kingdom. We welcome U.K. accession to the CPTPP. We do not oppose Bill C-13, but Canada should not ratify this agreement without first securing equity and reciprocity for the people who built both our countries.
More than 100,000 U.K. state pensioners live in Canada. They worked, contributed and paid into the U.K. system for decades. They earned their pensions, but because they chose to retire in Canada, their pensions are frozen forever. If they lived in the U.S.A., the EU or Turkey, they would receive full annual increases. In Canada, they do not. The only difference is geography. This is discrimination by postal code.
For example, Anne Puckridge is 101 and a Second World War veteran. She moved to Canada in 2001 to be near family. Her pension has been frozen for 25 years at £72.50, or $135 a week. Had she moved to the U.S., today she would receive £180, or $336 a week. She did everything right. She served, contributed and followed the rules, yet she has been penalized for choosing Canada. With inflation exceeding 60% since 2001, her purchasing power has collapsed, and Canadian taxpayers now help fill the gap.
Through GIS and other income supports, Canada now spends significantly more than $200 million annually supporting British pensioners who should be supported by the U.K. system they paid into. This is a moral and fiscal issue. Globally, the pensions of more than 400,000 U.K. pensioners are frozen. Nearly 90% of these pensioners live in the CPTPP countries, each and every one, with most living in Canada and Australia. This reflects outdated postwar arrangements that no longer match modern mobility or modern values.
Canada uprates CPP and OAS abroad, including in the U.K. The U.K. does not reciprocate. Successive Canadian governments have raised this issue politely, respectfully and persistently. Nothing has changed. U.K. officials admit that the policy has not been reviewed in 70 years. Why? It is because there has been no leverage until now.
Bill C-13 gives Canada leverage. Once ratification occurs, the leverage disappears. Canada is being asked to grant permanent trade privileges, market access, tariff elimination and investment flows worth billions while leaving pension injustice untouched. That sends the wrong signal.
As Prime Minister Mark Carney warned, middle powers can no longer afford to “go along to get along”, which is what Canada has been doing on frozen pensions. This is the moment to insist that trade reciprocity includes people, not just products and capital.
U.K. treasury officials cite uprating costs of £930 million. That assumes full historical equalization, something the U.K. has never done in past agreements.
Official U.K. FOI data shows that the real cost of uprating pensions in Canada would be about £13 million, or $24 million, for 2027-28. That is a rounding error on a U.K. pension budget of £146 billion per annum.
The barrier is not money; it is political will. We are not asking to rewrite the CPTPP. We are not asking to block accession. We are asking for a responsible pause, a pause to secure a formal U.K. commitment to amend the reciprocal social security agreement to include annual uprating. That is not obstruction; it is good governance. It is standing up for residents of Canada. It protects Canadian taxpayers, and it strengthens Canada's credibility.
We therefore ask this committee to recommend that Bill C-13 not proceed until Canada obtains a formal U.K. commitment to enter negotiations on annual uprating for U.K. state pensioners residing in Canada. We also ask the ESDC and Global Affairs Canada to actively pursue a modernized, bilateral, reciprocal social security agreement with the U.K. that explicitly provides for annual pension uprating. Trade access should not move forward on a one-way basis while pension justice remains frozen.
After 70 years, it is time for equity and reciprocity. This is the moment, as Mark Carney said, to “tak[e] the sign out of the window” and for Canada to act.
Thank you.