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UK expat pensioners in Europe still threatened by loss of pension uprate
| Published: | 9 Jan at 6 PM |
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UK expats in EU member countries are to have their state pensions uprated – but only for a year.
Along with all the other negative effects of the Brexit disaster on British expatriates living in the EU, the continuing of the guaranteed annual inflation-proofing increase has been a serious cause for concern, especially for the newly-retired. The uprate is triggered by the higher of two indicators – wage growth and the rate of inflation. Should both be lower than 2.5 per cent, the same percentage uprate is guaranteed. Unsurprisingly, no allowances are being made for either the recent fall in sterling or the currency’s anticipated further collapse after Brexit in whichever form it becomes a reality.
The government’s statement was triggered by a question from the member for Cheltenham, Lord Jones, who asked whether British would-be expats planning to move to Italy would continue to receive the annual upgrade in the case of a no-deal exit from the EU. Department of Work and State under-secretary for work and pensions Baroness Buscombe reassured the House the state pension itself would continue to be paid post-Brexit to UK expatriates worldwide, but did not immediately mention the annual uprate. She added the government wishes to secure reciprocal agreements with EU member states in order to ensure uprating will take place, even should a no-deal Brexit be the final outcome.
Finally, she said the UK state pension will be uprated for UK pensioners for the period of 2019-2020, but gave no mention of any progress as regards future reciprocal agreements. At present, many UK pensioners living in popular destinations such as France and Spain are finding it hard to cope financially due to their pensions being paid in sterling and needing conversion to euros. Whichever form Brexit takes over the next two months, the chosen lives of literally thousands of British expats are now on the line.
Along with all the other negative effects of the Brexit disaster on British expatriates living in the EU, the continuing of the guaranteed annual inflation-proofing increase has been a serious cause for concern, especially for the newly-retired. The uprate is triggered by the higher of two indicators – wage growth and the rate of inflation. Should both be lower than 2.5 per cent, the same percentage uprate is guaranteed. Unsurprisingly, no allowances are being made for either the recent fall in sterling or the currency’s anticipated further collapse after Brexit in whichever form it becomes a reality.
The government’s statement was triggered by a question from the member for Cheltenham, Lord Jones, who asked whether British would-be expats planning to move to Italy would continue to receive the annual upgrade in the case of a no-deal exit from the EU. Department of Work and State under-secretary for work and pensions Baroness Buscombe reassured the House the state pension itself would continue to be paid post-Brexit to UK expatriates worldwide, but did not immediately mention the annual uprate. She added the government wishes to secure reciprocal agreements with EU member states in order to ensure uprating will take place, even should a no-deal Brexit be the final outcome.
Finally, she said the UK state pension will be uprated for UK pensioners for the period of 2019-2020, but gave no mention of any progress as regards future reciprocal agreements. At present, many UK pensioners living in popular destinations such as France and Spain are finding it hard to cope financially due to their pensions being paid in sterling and needing conversion to euros. Whichever form Brexit takes over the next two months, the chosen lives of literally thousands of British expats are now on the line.
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