Winter fuel payment Brexit loophole that may save thousands of pensioners
Many British pensioners living in certain countries outside the UK could still receive their winter fuel payments thanks to this Brexit loophole.
Thousands of British pensioners who reside in certain other countries may still be able to claim their winter fuel payments thanks to the Brexit Withdrawal Agreement.
Earlier this year Britain’s new Chancellor Rachel Reeves announced that only those on pension credit would qualify to receive winter fuel payments in England and Wales. She explained this was to fill what she claimed was a £22billion black hole left by the previous Conservative government.
She confirmed that the winter fuel allowance would no longer be available to those not on pension credit or other means-tested benefits, worth between £100 and £300.
This announcement came ahead of an expected energy bill hike in October, likely to put further strain on pensioners, as Ofgem prepares to raise the price cap once again.
However, some older people living abroad in the EU can still claim their winter fuel payments, even if they are above the income threshold set by Ms Reeves - but their eligibility will depend on which country they live in.
For example, Brits living in France and Spain, some of the nations most loved by older British expats, will still not be able to claim the winter fuel payment.
On the other hand, expats living in 23 countries in the EU, as well as Norway, Iceland, Liechtenstein and Switzerland, will see their allowance guaranteed no matter their income up to April next year by the Brexit withdrawal agreement.
According to the Telegraph, 35,000 UK pensioners living in Europe can continue receiving the extra support for their winter energy bills.
Their eligibility is linked to EU rules on the exporting of benefits rather than domestic policy, the news outlet said.
Yesterday the Prime Minister defended the government's decision to scrap Winter Fuel Payments.
Keir Starmer said: “Our first job was to audit the books, and what we found was a £22bn black hole. So we've had to take tough decisions to stabilise the economy and repair the damage, including targeting winter fuel payments whilst protecting pensioners."
It was revealed that the state pension is expected to rise by £400 next year.
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Russell Gous, the CEO of TopMoneyCompare said: "The predicted £400 increase in the UK state pension for 2025 is welcome news for retirees, especially as millions in the UK will now be going without the Winter Fuel Allowance.
"However, for tens of thousands of expats, this will come as a double boost as those living in certain EU countries are still in line to receive the fuel allowance as part of the Brexit withdrawal agreement."
He added that it's important to remember that pensioners receiving credits in a foreign country are especially vulnerable to the volatile nature of exchange rates.
He said: "While the headline increase is undoubtedly beneficial, expats must remain aware of the broader economic factors that could impact their financial security."
