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Winter fuel payment
By Jeff Salway
British expatriate pensioners in 19 European countries can claim £200-a-year, tax-free payments if they left the UK after 5 January 1998. The extension of winter fuel payments to those living overseas was introduced in 2002, and today almost 50,000 expats still benefit. They can also backdate claims to 1998 and reclaim up to £1,800.
According to a Department of Work and Pensions spokesman, the payments are made under EU arrangements allowing those living abroad to export state benefits to their overseas homes, regardless of whether they have a UK residence or not. "However, winter fuel payment is only paid to former UK residents living in the European Economic Area if they qualified for payment before leaving the country," he adds.
But while new claimants must be resident in the UK during the qualifying week - which this year starts on 17 September - this doesn't apply to previous claimants, says Ken Geddes of energy comparison service Energylinx. "It doesn't sit comfortably that even if you last lived here several years ago and now live permanently overseas, you can still claim £200 a year."
Geddes explains that while winter fuel payments are invaluable for millions of UK residents, particularly pensioners, the eligibility rules need reviewing. "The idea is to help people pay their bills and prevent them becoming ill due to lack of heating. It wasn't intended for people living permanently in Marbella."
Geddes adds that some overseas resorts recommend to residents that they claim winter fuel benefits, refering to them as a 'Christmas present'.
Meanwhile, the number of fuel-poor in the UK has almost doubled to 21% in the last year, as pensioners' fixed incomes fail to keep pace with energy prices.
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