British pensioners living abroad in certain countries could have their Winter Fuel Payments saved thanks to the terms of a Brexit deal.
Older expats can continue to receive the energy bill benefit due to a catch included as part of the Brexit Withdrawal Agreement.
Earlier this year, Chancellor Rachel Reeves confirmed that the Winter Fuel Allowance would be means-tested and no longer made universal.
As such, pensioners need to claim benefits from the Department for Work and Pensions (DWP), including Pension Credit, to receive up to £300 in support.
This comes ahead of an expected energy bill hike in October as Ofgem prepares to raise the price cap once again.
Despite this, some older people living abroad in the EU will still be able to claim the Winter Fuel Payment even if they are not on low income.
Do you have a money story you’d like to share? Get in touch by emailing [email protected].
It should be noted that not every expat will be entitled to this support as it is dependent on where they reside in Europe, including Germany, Ireland, Italy, Belgium and the Netherlands.
Notably, British expats living in France and Spain will still not be able to claim the Winter Fuel Payment.
However, those living in 23 countries in the EU, Norway, Iceland, Liechtenstein and Switzerland will get the allowance via the Brexit withdrawal agreement.
Some 35,000 UK pensioners living in Europe are in line to continue claiming this support, according to The Telegraph.
During PMQs, Prime Minister Keir Starmer defended the new Labour Government's decision to scrap the Winter Fuel Payment for millions of Britons.
He claimed the move was a necessary one to help "stabilise the economy" in an attempt to fill the £22billion "black hole" in the public finances.
These comments come shortly after the revelation that the state pension is expected to rise by £400 next year.
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."
Despite this expected "double boost", the money expert had a stark warning for British expats about any payments that come their way.
LATEST DEVELOPMENTS:
- 1.6 million pensioners 'below the poverty line' at risk as Winter Fuel Payment axed
- State pension could rise by £400 next year but triple lock future 'questionable'
- Pensions overhaul could leave savers £217k better off in retirement
Gous added: "It’s important to remember, however, that expats receiving their pensions in foreign currencies are especially vulnerable to exchange rate volatility.
"A stronger pound can erode the value of their pension when converted to local currency, potentially offsetting the benefits of the increase.
For those relying on the UK state pension as a key source of income abroad, it’s crucial to keep an eye on exchange rate trends and consider financial planning strategies that can help mitigate these risks.
"While the headline increase is undoubtedly beneficial, expats must remain aware of the broader economic factors that could impact their financial security."
Find Out More...