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Spending Review: 'Temperature test' for winter payments Spending Review: 'Temperature test' for winter payments
(35 minutes later)
Expats who live in warm European countries face losing their Winter Fuel Payments under a "temperature test" announced by the chancellor. Expats who live in warm European countries face losing their winter fuel payments under a "temperature test" announced by the chancellor.
George Osborne said that the payment would be withdrawn from people living in warmer countries from autumn 2015.George Osborne said that the payment would be withdrawn from people living in warmer countries from autumn 2015.
This will affect those living in a European country with an average winter temperature higher than the UK.This will affect those living in a European country with an average winter temperature higher than the UK.
The move would save the Treasury about £30m, the Spending Review documents revealed.The move would save the Treasury about £30m, the Spending Review documents revealed.
A recent European court judgement meant more people in Europe could now claim Winter Fuel Payments, the Treasury said. Universal benefit
A recent European court judgement meant more people in Europe could now claim winter fuel payments, the Treasury said.
The proposed changes, which would require legislation, would offset the increased costs from this ruling, leaving the cost static, rather than cutting costs significantly.The proposed changes, which would require legislation, would offset the increased costs from this ruling, leaving the cost static, rather than cutting costs significantly.
Winter Fuel Payments cost the government about £2bn a year. Winter fuel payments cost the government about £2bn a year.
The payments, which are a £100-£300 tax-free sum, are currently a universal benefit paid to the over 60s each year.The payments, which are a £100-£300 tax-free sum, are currently a universal benefit paid to the over 60s each year.
Those aged over 80 tend to get the highest amount.Those aged over 80 tend to get the highest amount.
It is aimed at helping people to pay their fuel bills, rather than turning off their heating or keeping it too low during the cold weather.It is aimed at helping people to pay their fuel bills, rather than turning off their heating or keeping it too low during the cold weather.
The biggest bill for winter fuel payments in Europe - outside the UK - is for expats in Spain, figures from the Department for Work and Pensions (DWP) show.
The cost for people there was £5.78m in the winter of 2011-12, according to the most recent statistics.
Expats in countries such as Greece, Portugal and Cyprus are likely to lose winter fuel payments. The bill for expats in these countries in the same year was £240,000, £356,000 and £926,000 respectively.