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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. | |
George Osborne said that the payment would be withdrawn from people living in warmer countries from autumn 2015. | George Osborne said that the payment would be withdrawn from people living in warmer countries from autumn 2015.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. |
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. | |
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. |