State pensioners will KEEP £300 Winter Fuel Payment 'depending on where they live'

Some state pensioners look set to KEEP the £300 Winter Fuel Payment under a European Union deal. The new Labour Party government's decision to means-test the energy bill benefit will impact millions of pensioners but those living abroad could be protected.

Expats living in the European Union plus Norway, Iceland, Liechtenstein and Switzerland are guaranteed the allowance by the Brexit withdrawal agreement. The disclosure will add to the controversy over the Chancellor’s decision to scrap the payment for all UK residents who are not in receipt of benefits.

Some 35,000 UK pensioners living in Europe are in line to continue claiming this support, according to The Telegraph. 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.

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"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." Mr 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." Retirees abroad are still eligible for the allowance because their access to social security payments was written into the Brexit withdrawal agreement.

It is EU rules on the exporting of benefits, which are still in force, rather than domestic policy that entitle British pensioners on the continent to the handout.