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‘Temperature test’ looms for expat pensioners

Tahmina Mannan
Written By:
Tahmina Mannan
Posted:
Updated:
26/06/2013

UK pensioners who live in warm European countries face losing their Winter Fuel Payments under George Osborne’s new plans to introduce a ‘temperature test’.

The Chancellor announced that the payment would be withdrawn from expat pensioners who live in countries that are warmer than the UK. The new ‘temperature test’ will be introduced from autumn 2015. 

This move is set to save the Treasury around £30m. As it stands, Winter Fuel Payments cost the government around £2bn a year in total.

The proposed changes, which would require legislation, is set to offset the increased costs from a recent European court judgement which means more people in Europe will be able to claim Winter Fuel Payments.

The payments, which are a £100-£300 tax-free sum, are currently a universal benefit paid to the over 60s each year, regardless of income and other assets.

The payment is aimed at helping people cover the cost of rising fuel bills, rather than turning off their heating or keeping it too low during the cold weather.