RETIRED expats could suffer a freeze in their pensions following a ‘no-deal’ Brexit, it has emerged.
According to FT.com, annual increases can’t be guaranteed by the DWP for more than three years, should the UK leave the EU without formalising a structured withdrawal agreement.
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Work and Pensions Secretary, Amber Rudd, has suggested the removal of automatic pension increases in Spain would BENEFIT to the UK, referring to the £500m cost of ‘uprating’ expat retiree pensions across the world.
She said on Sunday: “We will be fully ready for Brexit, and are leaving in a way that protects the interests of citizens here and in EU member states.”
She added the government would only ‘seek an agreement with EU nations so that pension increases could continue into the future’.
Notably, she stopped short of a guarantee that pensions would not be frozen.
Sir Steve Webb, of mutual life insurer Royal London, countered Ms Rudd’s confidence as he said: “If the UK leaves the EU on bad terms, there is no guarantee that a new uprating arrangement will be reached.”
John Camsey, who lives in Los Alcazares said to the Olive Press: “Why should I lose out on thousands of euros just because of this government’s eagerness to leave the EU. I’ve paid in, I want what’s mine.”