Blogging Fusion Blog Directory the #1 blog directory and oldest directory online.

Solution Loans Personal Finance Blog

Home Solution Loans Personal Finance Blog

Solution Loans Personal Finance Blog

Rated: 3.00 / 5 | 4,180 listing views Solution Loans Personal Finance Blog Blogging Fusion Blog Directory

United-Kingdom

 

General Audience

  • July 27, 2016 07:56:58 PM
SHARE THIS PAGE ON:

A Little About Us

Why are some people better at saving money? Could your pension be at risk? How to kick start your business with a guarantor loan? Find out the answers to these questions and more from the independent loan broker Solution Loans, with lots of money saving tips and expert financial advice on a range of issues, from family budget travel to cheap home improvements and more.

Listing Statistics

Add ReviewMe Button

Review Solution Loans Personal Finance Blog at Blogging Fusion Blog Directory

Add SEO Score Button

My Blogging Fusion Score

Google Adsense™ Share Program

Alexa Web Ranking: 2,697,432

Alexa Ranking - Solution Loans Personal Finance Blog

Example Ad for Solution Loans Personal Finance Blog

This what your Solution Loans Personal Finance Blog Blog Ad will look like to visitors! Of course you will want to use keywords and ad targeting to get the most out of your ad campaign! So purchase an ad space today before there all gone!

https://www.bloggingfusion.com

.

notice: Total Ad Spaces Available: (2) ad spaces remaining of (2)

Advertise Here?

  • Blog specific ad placement
  • Customize the title link
  • Place a detailed description
  • It appears here within the content
  • Approved within 24 hours!
  • 100% Satisfaction
  • Or 3 months absolutely free;
  • No questions asked!

Subscribe to Solution Loans Personal Finance Blog

Why are funeral costs rising so fast and what’s being done about it

An investigation by the Competition and Markets Authority (CMA)... You're reading the blog post Why are funeral costs rising so fast and what’s being done about it that was written by and first published on Getting Loans and Credit & Managing...

An investigation by the Competition and Markets Authority (CMA) has established that the expenses involved in a funeral in the UK have risen sharply. Costs have gone up significantly above inflation for more than 10 years now and the CMA found that bereaved friends, relatives and partners were being taken advantage of by the funeral industry at a time of emotional vulnerability.funeral costs rising fast

Why have funeral prices risen?

The funeral industry in the UK is worth £2 billion and the report by the CMA has been incredibly critical of the way that prices have increased over the past decade. Perhaps the most damning part of the report identified that there was no quality improvement being delivered as a result of the increased costs – and that the industry itself was not facing the kind of rising prices that would justify hiking prices. So, according to the CMA, the cost of a funeral has gone up simply because the industry feels that it can charge more.

The cost of dying

The average cost of a funeral in the UK is £4,271 – this is an increase of 68% over the past decade. A cremation now costs an average of £3744 – inflation has been 25% over the past 10 years but the increase in the cost of a cremation in the same period represents a price rise of 84%. The up front costs of a funeral can be fairly significant but many mourning families have also found that there are multiple extra expenses added to the final bill that push this total up even further. These could amount to several thousand pounds more than originally anticipated. The main issue is that funerals are usually being organised at a time of great emotional pressure and stress. The accusation being levelled at the industry is that the vulnerability this creates in the average human is something that it is exploiting for greater gain.

Finding a cheaper funeral option

It is possible to pay less than the average for funeral costs and also to ensure that added extras don’t push the prices up. However, there are obstacles to this. For example, funeral prices are not available online so there is currently no way to compare the options other than manually doing this with each individual provider. Around £1,000 can be saved by shopping around when it comes to organising a funeral. However, grief is another big obstacle. People often don’t have the energy or the inclination to spend time researching funeral costs when feeling distressed by the loss of a loved one. And, according to the CMA, funeral providers have taken advantage of this by increasing costs.

The government does provide some help via the Social Fund Funeral Expenses Payment – this covers reasonable costs for crematoriums and cemeteries and a £700 cap on other fees. However, this still leaves many people significantly short of the cost of the average funeral and for many that has meant that the only solution is getting into debt.

The need for regulation

Currently, the funeral industry is not regulated and many, both in the industry and representing consumer organisations, believe that it’s time for that to change. The National Association of Funeral Directors does have a code of practice that its members are required to adhere to. However, given the escalating costs involved in paying for a funeral, it’s clear that self-regulation is not enough to stop consumers being exploited.

The government, too, has concluded this. In addition to the investigation by the CMA, the Treasury has also been looking into prepaid funerals. These are financial products but are not regulated by the Financial Conduct Authority in the same way as other financial packages, such as pensions. The government has concluded that current self-regulation is just not sufficient to ensure fair treatment of consumers and so full regulation is being considered.

A good blueprint to follow may come from Scotland. The Scottish Government has already taken steps to correct the imbalance within the industry, appointing an inspector to look into funeral homes in Scotland. It is also in the process of creating regulation for the sector, as well as a social enterprise fund that is designed to provide a wider range of cheaper options for funerals that are easier for those on low incomes to manage. 

Even those within the sector acknowledge that the funeral industry in the UK has been taking advantage of consumers at a very vulnerable time for many years. Given the findings of the CMA it’s clearly time for the situation to change and for the government to look at ways to regulate.

Related Stories

 

 

You're reading the blog post Why are funeral costs rising so fast and what’s being done about it that was written by and first published on Getting Loans and Credit & Managing Money.


Paying for Christmas 2018 – the lessons for Christmas 2019!

In the run up to Christmas most of us... You're reading the blog post Paying for Christmas 2018 – the lessons for Christmas 2019! that was written by and first published on Getting Loans and Credit & Managing Money.

In the run up to Christmas most of us spend an extra £1,000 a month – on top of an average of £2,000 existing monthly outgoings. During November and December we all get a bit trigger happy when it comes to spending and a lot of this ends up on credit cards. That’s why January can feel like a rather bleak month. The lights, food, fun, friends and family time have all been replaced by big bills and not much time to pay them off. In 2018 research established that it would take most Brits until April to pay off Christmas debt! This year, with financial instability as a result of Brexit and various rising costs, that time period could be even longer.paying for Christmas

A negative festive cycle

Overspending is something that most of us do as Christmas approaches. It feels normal to go a little over the top to make sure that everyone has the food and gifts that will make it a special time. However, all those purchases can seem fairly unnecessary in the cold light of January. As the new year starts, the pressure of other outgoings, from rent and food to travel expenses, will make repaying Christmas debt very difficult. As a result, almost half of us identify January as the most difficult financial month of the year.

Paying for Christmas 2019

Next Christmas might be the very last topic you want to think about right now. However, planning ahead for it could help you to avoid a situation where you’re stuck with a big bill to deal with in January 2020. So, what can you do to pay for Christmas differently?

  • Don’t spend as much as you did last time. Christmas isn’t really about all the stuff it’s about the people and what you do together. That may sound like a cliché but it’s true. You can still have a fantastic yuletide in 2019 and spend less. While it’s fresh in your mind now, write down all the things you bought this year that you didn’t really need or want in the end, and use it as a reminder not to waste the money next year.
  • Cut back on other spending in the run up to Christmas. That might mean a cheaper summer holiday or maybe a few weeks without spending on extras in September and October. Being thrifty in the months before the festive season will give you more flexibility during that expensive time.
  • Start saving now. It’s amazing how small monthly savings can add up over the course of the year. Create a budget for this year now based on what you spent last year. Break that down into 10 monthly payments with the goal of having what you need to pay for next Christmas by October. Top this up with any small windfalls that you get over the course of the year.
  • If debt is your only option be smart. If you know you’re going to be borrowing to pay for Christmas then make sure you have a plan in place for repaying the debt. Do your research into the types of credit that may be available to you and find the lowest possible interest rate. If you’re eligible for a 0% credit card then you’ll be able to borrow without paying anything, as long as you finally repay within the time limit.
  • Join a Christmas club. If you know that you’re not that disciplined when it comes to saving, a Christmas club could help to make the festive season more affordable next year. The idea is that you pay for Christmas in small monthly repayments throughout the year and then you get access to your cash – plus bonus – in November.
  • Plan to buy your gifts in the sales. If you’re really struggling then the cost of brand new Christmas presents might be difficult to justify. So, instead of the expense of full priced items, agree with family and friends to buy your gifts in the post-Christmas sales instead and just be together on Christmas Day. You’ll get more for your money and people might enjoy getting a slightly later gift.
  • Increase your income. There are lots of ways to add to your income – even an extra £50 a month between now and next October could give you an additional £500 to work with for Christmas. Car boot sales, selling unwanted items online, joining the gig economy and being paid for skills such as photography or writing could all help to generate a little extra cash.

If you are struggling to pay off Christmas this year, you’re not the only one. However, there are steps that you can take to give yourself more chance of a financially freer in January 2020.

Related Stories

 

You're reading the blog post Paying for Christmas 2018 – the lessons for Christmas 2019! that was written by and first published on Getting Loans and Credit & Managing Money.


Parking Fines vs PCNs

Figures released earlier in 2018 indicate that car park... You're reading the blog post Parking Fines vs PCNs that was written by and first published on Getting Loans and Credit & Managing Money.

Figures released earlier in 2018 indicate that car park penalty tickets issued in the UK have reached a record high. Analysis of government driver data found that the number of tickets issued by car park management firms reached 5.56 million. Controversy has arisen over the way that parking tickets are issued and, in particular, how the private parking industry handles – and profits from – consumers. If you find yourself with a parking fine then you don’t have to simply accept it and pay up.

types of parking ticket

We’re paying more for parking infringements

According to the RAC Foundation the number of car park penalty tickets has risen by a fifth in almost 12 months. Such a significant increase indicates that either we are becoming a lot more careless when it comes to how and where we park – or the industry is finding more ways to make money from us. Parking fines can be a profitable business, both for private companies and councils. In 2016/17 around £819 million was generated from the on and off street activities of the UK’s local authorities. Most of the councils making large surpluses from their parking activities were located in London. However, local authorities in Brighton & Hove and Milton Keynes also had surpluses that topped more than a million.

Parking tickets

There are three main types of parking tickets: Penalty Charge Notices and Fixed Penalty Notices issued by a local authority and Parking Charge Notices issued by private parking firm. All tend to be yellow and look very similar but private parking tickets are far less enforceable – and all can be challenged.

A Penalty Charge Notice

• Issued by the local authority for parking where you shouldn’t, as well as other issues such as traffic infringements.
• Payment is required within 28 days. After that a ‘charge certificate’ is issued with payment terms of 14 days for the original fine plus 50%. If the amount is still not paid within 14 days then a court order will be generated demanding payment.

A Fixed Penalty Notice

• Issued by the local authority, police or Driver and Vehicle Standards Agency (DVSA)
• Payment is also required within 28 days or the amount owed is increased by 50%
• Where a Fixed Penalty Notice is not paid prosecution is usually the next step – this may mean a bigger fine in the long run, as well as having to cover court costs.

Parking Charge Notices

• Issued by private parking companies who manage car parks for supermarkets, railway stations etc e.g. Britannia Parking Group, Euro Car Parks, NCP and ParkingEye.
• As the issuing firm is private, they set their own requirements and conditions with respect to payment dates and fine amounts.
• Typical actions that will attract this type of parking charge notice include not paying for a parking ticket or parking in the wrong place.

Challenging a parking ticket

You can challenge a parking ticket, no matter what type it is. This year saw an 8% drop in challenges taken all the way to an independent adjudicator. However, for those who do make this effort, 56% win.

Penalty Charge Notice

  1. If you receive a Penalty Charge Notice you’ll have 28 days in which to challenge it – do this within 14 days and, even if the challenge is rejected, you may only be required to pay 50% of the fine.
  2. If your challenge is accepted then you no longer have to pay the fine.
  3. Where an initial challenge is rejected, a further 28 days is allowed for a formal challenge. If you make a formal challenge you will need to be able to explain fully why you believe that the Penalty Charge Notice shouldn’t apply. It’s often useful to provide evidence to support your arguments, such as photographs of signs or markings that were missing or witness statements from people who can back you up.
  4. If your arguments are still not accepted, you’ll have a further 28 days to pay or take your case to an independent tribunal.

Fixed Penalty Notice

Challenging a Fixed Penalty Notice is usually done via a magistrate’s court.

Parking Charge Notices

  1. Private parking firms actually have no power to enforce parking tickets or issue fines. When you receive one of these tickets what’s actually happening is that the firm is issuing an invoice for breach of contract. For that contract to be valid, the terms (i.e. the terms on which you’re parking) must be 100% clear. If not then tickets should be simple to challenge. These businesses have no power to tow your vehicle (they could be fined £5,000 if they try to) or to use bailiffs. And, no matter what threats are made, private parking tickets can only be enforced against drivers via the courts.
  2. Check whether the parking firm belongs to the British Parking Association (BPA) or the Independent Parking Committee (IPC). These are the two trade bodies for the industry. If the ticket has not come from a firm that belongs to either of these then you do not have to pay the fine.
  3. Appeal to the parking firm and set out why you don’t believe the notice is valid – for example, you may not have been able to buy a ticket for a station car park because the ticket issuing machine was broken. Supply as much evidence as you can e.g. photos of the broken machine.
  4. If your appeal is rejected then you can contact the Parking on Private Land Appeals (POLPA) body, which is run by the Ombudsman Service.

Related Stories

You're reading the blog post Parking Fines vs PCNs that was written by and first published on Getting Loans and Credit & Managing Money.


Most People don’t have an Emergency Fund!

It’s so important to put away funds for a... You're reading the blog post Most People don’t have an Emergency Fund! that was written by and first published on Getting Loans and Credit & Managing Money.

It’s so important to put away funds for a rainy day. When household essentials that we take for granted break, need replacing or reach the end of their lives it can be a big financial strain to replace them.

If you were required to replace your existing boiler, you’d be looking at a cost of over £1,000 including fitting. To completely replace your roof, you’d pay in the region of £5,000. For a home rewiring it would set you back £2,750.create an emergency fund

For many of us, we simply wouldn’t have the funds set aside to cover these expenses. Too often that means borrowing to make up the shortfall. Whether that takes the shape of credit cards, personal loans, or cash loans, the outcome is the same – money owed and debt accrued.

Put away a just a little every month

We looked at the average cost of replacing essential items and their lifespan to calculate the monthly savings you’d need to accrue to replace them at the end of their lives. It turns out, you would need to save £138.67 per month to cover one replacement for all of your essential household items.

That’s certainly a manageable figure for many households and a better option than plunging yourself into debt. Of course there is no guarantee that each item won’t need replacing in a shorter time frame or that things won’t break consecutively, but £138 is the figure you should try and work towards.

Item

Total cost

Lifespan

Monthly cost

Boiler

£1,040.00

15 years

£5.78

Fridge freezer

£500.00

11 years

£3.79

Washer-dryer

£550.00

12 years

£3.82

Oven

£300.00

13 years

£1.92

Dishwasher

£400.00

11 years

£3.03

Vacuum cleaner

£150.00

8 years

£1.56

House rewire

£2,750.00

25 years

£9.17

New roof

£5,000.00

30 years

£13.89

Plumbing problem

£225.00

3 years

£6.25

New water pipes

£13,954.00

50 years

£23.26

Car

£750.00

Per year

£62.50

Vet bill

£574.00

13 years

£3.70

       

Total

£26,193.00

 

£138.67

Results of our UK Survey

We also surveyed a portion of the UK population to understand how we’re doing as a nation when it comes to putting away funds for a household emergency.

We saw that 60% of Britons have £1000 or less stored away for this purpose. That isn’t enough for a boiler replacement, meaning many families would be left struggling in winter if anything were to happen to their current heating solution.

More worrying is the fact that 10% of the country have no savings at all in place to help them out with a household emergency.

Just under a quarter of us do, however, have over £5000 in savings. Enough to completely replace your roof if it came to it, or re-wire your home.

Our Question: You’re suddenly faced with the cost of repairing a car or an important household item (e.g. freezer/washing machine). How much money do you already have saved for such an emergency?

Current amount saved for emergencies

 

£0

10.3%

Between £1 and £100

9.8%

Between £101 and £250

10.8%

Between £251 and £500

12.6%

Between £501 and £750

5.2%

Between £751 and £1,000

11.3%

Between £1,001 and £2,000

7.1%

Between £2,001 and £3,000

3.8%

Between £3,001 and £4,000

2.6%

Between £4,001 and £5,000

2.8%

More than £5,000

23.7%

Regional UK Differences in amount saved

People in Liverpool seem to be the most prepared for funding an emergency with those in Norwich a close second.

Sheffield:

£0

21.7%

Between £1 and £100

4.3%

Between £101 and £250

8.7%

Between £251 and £500

13.0%

Between £501 and £750

13.0%

Between £751 and £1,000

17.4%

Between £1,001 and £2,000

8.7%

Between £2,001 and £3,000

0.0%

Between £3,001 and £4,000

4.3%

Between £4,001 and £5,000

4.3%

More than £5,000

4.3%

Manchester:

£0

13.6%

Between £1 and £100

15.9%

Between £101 and £250

9.1%

Between £251 and £500

9.1%

Between £501 and £750

5.7%

Between £751 and £1,000

14.8%

Between £1,001 and £2,000

8.0%

Between £2,001 and £3,000

1.1%

Between £3,001 and £4,000

1.1%

Between £4,001 and £5,000

2.3%

More than £5,000

19.3%

Bristol:

£0

12.0%

Between £1 and £100

12.0%

Between £101 and £250

12.0%

Between £251 and £500

12.0%

Between £501 and £750

12.0%

Between £751 and £1,000

8.0%

Between £1,001 and £2,000

4.0%

Between £2,001 and £3,000

0.0%

Between £3,001 and £4,000

0.0%

Between £4,001 and £5,000

0.0%

More than £5,000

28.0%

Liverpool:

£0

13.2%

Between £1 and £100

5.7%

Between £101 and £250

5.7%

Between £251 and £500

17.0%

Between £501 and £750

3.8%

Between £751 and £1,000

9.4%

Between £1,001 and £2,000

1.9%

Between £2,001 and £3,000

1.9%

Between £3,001 and £4,000

3.8%

Between £4,001 and £5,000

3.8%

More than £5,000

34.0%

Norwich:

£0

10.2%

Between £1 and £100

14.3%

Between £101 and £250

18.4%

Between £251 and £500

8.2%

Between £501 and £750

4.1%

Between £751 and £1,000

6.1%

Between £1,001 and £2,000

2.0%

Between £2,001 and £3,000

0.0%

Between £3,001 and £4,000

2.0%

Between £4,001 and £5,000

2.0%

More than £5,000

32.7%

Why is an Emergency Fund Important?

Our personal finance expert Amanda Gillam said:

“It’s so important to not be short-term when it comes to your finances. Too often we see people overstretching themselves to use credit for major purchases, meaning that their monthly income goes on paying off debt rather than for savings.

“Whilst saving isn’t always the most exciting thing a person can do with their money, its vital that if people can save that they put something aside for when times are hard. It’s important to consider the consequences of being caught out if something goes wrong at home and a household item needs to be replaced or repaired.

“Whilst borrowing money can help meet these short-term needs, in some cases unplanned borrowing can lead to people getting into financial difficulties over time. By simply putting away a small of money each month people can avoid these potential problems.”

 

 

Top tips to help you save

By putting something away every month, you’ll be in the best position to cover yourself in the case of an emergency. The following are essential tips to help you do just that:

  • Learn how to budget – calculate your income vs. outgoings and make sure you don’t overspend each month.
  • Cut your outgoings where you can – moving to a better deal for your energy bills, taking a packed lunch to work and car sharing for your commute are all great ways to trim your expenses.
  • Learn to live within your means – living lean means you know how to get the most out of your food shop without wasting anything, where to get the best deals or the benefits of shopping second hand.
  • If you have credit cards, pay them off at the end of every month or keep the balances as low as possible to avoid unnecessary spending on interest.

A rainy day emergency fund should be a reality, not an impossibility.

Related Stories

 

You're reading the blog post Most People don’t have an Emergency Fund! that was written by and first published on Getting Loans and Credit & Managing Money.


Buy Now, Pay Later from Klarna

Klarna is a name that you may have seen... You're reading the blog post Buy Now, Pay Later from Klarna that was written by and first published on Getting Loans and Credit & Managing Money.

Klarna is a name that you may have seen appearing with increasing frequency if you shop online these days. It’s a new type of financial service that offers the option to try before you buy – and pay later. A number of big retailers, including JD Sports, have begun to offer this type of finance to customers. However, they have been warned that the result of doing so could be to push customers into debt. So, is the new service a convenience for customers or simply a debt trap?

Klarna logo

What is Klarna?

It’s a Swedish bank that started trading in the UK in 2015. It has done incredibly well – H&M bought a 1% stake in the bank for $20m, making Klarna one of those elusive types of tech startup: a unicorn (i.e. worth more than $1 billion). So far, Klarna has established partnerships with some of the biggest names in online shopping, including Topshop and ASOS. Its financing is designed to overcome one of the biggest bugbears digital shoppers have: the time it takes to process refunds. Many online retailers now offer free returns in an attempt to tap into the practice among younger shoppers of ordering large volumes of items and then returning a lot of it. With Klarna, there’s nothing to pay up front. Instead, the customer can order as much as they want to and, as long as it’s returned within 14 or 30 days (depending on the retailer’s terms), no payment will be taken at all. Only the items that are kept have to be paid for.

Does Klarna credit check?

Yes they do. But they only carry out a “soft” credit check so between 70% and 80% of applicants are accepted in the UK. The firm will check personal details and then look at whether an individual has had any repayment issues in the past. If not, credit is approved. This may sound ideal for enthusiastic shoppers but as one Twitter user pointed out “it’s fine until you realise you owe them £200.” Klarna does say that they don’t charge interest or fees on amounts that are not paid within the 30-day repayment period. They have said that they will “work with” a customer who is having repayment issues to try and help them get back on track. And any customers who have problems with Klarna won’t be allowed to continue to increase what they owe.

However, the reality is that if Klarna customers can’t afford to make repayments on what they have racked up with a retailer they have just 120 days to pay the bill after the initial “try or buy” period expires. After that their account is passed to a debt collection agency and a whole range of charges and fees could start to apply. There may also be an impact on the individual’s credit score and this could be the start of problem debt for many. That’s especially so for younger customers in their late teens or mid 20s – consumers who may not have that much experience with financial matters.

Easy access credit issues

Minimal credit checks mean that it’s all too easy for anyone to obtain credit with Klarna. This is especially objectionable as it comes at a time when we are already in the middle of a mounting debt crisis affecting many consumers in the UK. However, the big issue with Klarna is the fact that it is targeting so many younger consumers as a result of the stores that it’s choosing to partner with. As many debt charities have pointed out this approach does not encourage budgeting. Instead, shoppers are encouraged to buy what they want now and pay it off at a later date. This is an attitude that has led many consumers to buy more than they can afford and to end up in a position where they are stuck in a cycle of repayment for something that they didn’t really need.

Although Klarna has emphasised that it has affordability checks in place these are quite basic. And, as Iona Bain, founder of the Young Money Blog, says

“my experience tells me that young consumers aren’t great at focusing on the details when it comes to debt… Unless you’re keeping a very close eye on liabilities like these, the risk that they get out of hand is very high indeed.”

Your Money Blog

More than a million people have already used Klarna’s service this year and interest in it as an option is increasing. Given the heavy weight of debt already shouldered by many UK consumers it’s worrying that this type of easy access credit could expose much younger generations to a potential debt trap.

Related Stories

You're reading the blog post Buy Now, Pay Later from Klarna that was written by and first published on Getting Loans and Credit & Managing Money.


The Impact of Brexit on UK Expats

Currently, around a million Britons live and work in... You're reading the blog post The Impact of Brexit on UK Expats that was written by and first published on Getting Loans and Credit & Managing Money.

Currently, around a million Britons live and work in the EU. This includes a mix of people, from families to students. There are also significant numbers of pensioners living in Europe – 1 in 5 expats is retired. For anyone who has made their life in the EU, the state of Brexit is worrying. With a deal in place many benefits and rights will continue. However, if the UK ends up in a “no deal” situation then there may be no consistent treatment of expats. Instead, each individual experience would depend on how the country in which that person is living treats UK nationals. Life is likely to change for expats in the EU either way – there are some key rights and benefits that could be affected.

effect of brexit on uk expats

The right to work

As EU citizens, British nationals currently have the right to work anywhere in the EU. However, even with an agreed deal on the table, when Brexit happens this could be replaced by a system of work permits. There are also issues that may affect individuals in non-traditional circumstances. For example, Brits living in EU states and providing cross border services – such as a British translator, based in Berlin providing services to Spanish and Italian businesses – may struggle to continue. The original Brexit withdrawal agreement does not allow Brits who are resident in EU member states to provide cross border services to companies in other EU states. This is just one way in which Brexit – with a deal or not – could be devastating in business terms for some expats.

Benefits

The social services sections of the existing deal would ensure that benefits continue to be paid largely as they currently are. It’s highly unlikely that the UK government would allow a situation to arise where benefits being paid to expats in the EU are simply stopped if there is no deal. However, the confusion that could ensue post-no deal Brexit may mean payments are delayed and access to entitlements temporarily lost.

Healthcare

Access to healthcare for EU based expats would continue if there is a deal. However, a no deal situation may mean that restrictions are introduced and private health insurance may become essential. This would be particularly problematic (and expensive) for retired expats who may not be able to get insurance based on their age, or who may have to pay a high price for it. Without a deal, the Healthcare International Arrangement Bill would provide the legal basis to fund and implement vital reciprocal healthcare schemes after the UK leaves the EU. However, this won’t be in place by the time the current arrangements come to an end.

The right to remain

The government has indicated that, even in a no deal situation, EU nationals in the UK would have a right to remain. Although the EU hasn’t confirmed the same for UK expats in Europe, it’s unlikely that EU countries would risk a mass exodus that could damage the local economies that benefit from UK expats. Complicated situations could arise in relationships that involve two partners, one from the UK and one from an EU member state. Restrictions on the right to work could affect families like this, depending on where they are based after Brexit.

Pensions

There are a number of different issues that may affect pensions.

  • The triple lock. Thanks to reciprocal agreements between the UK and EU, pensions for expats living in Europe currently increase in line with inflation as if the pensioner lived at home (called “the triple lock”). If there is no deal then pension payments would still be made but may not be inflation-proofed.
  • Financial services. There is a potential issue with a no deal Brexit that could mean that payments from British companies, including pension and insurance companies, being made to expats in the EU may be disrupted or not be made for some time after Brexit happens.
  • Aggregated pensions. For anyone who has worked in multiple EU countries, a system currently exists that aggregates pension pots as if the individual had lived in one country. This can be crucial, as the length of time spent in one country may not have been long enough for pension rights to vest. The aggregated arrangement means that pensions rights accrued in different countries are combined. Loss of access to this aggregated system as a result of a no deal could mean loss of contributions.
  • Pensions for Britons who worked abroad. Brexit with an agreement most likely means that the social security parts of the deal will ensure Britons who worked abroad and then moved back to the UK will still receive pension payments from EU employers. If there is no deal then this will require bilateral agreements with 27 different countries, each of which could end up being slightly different.

Education

Studying abroad will become more costly and complicated for expats and their children. For example, if there is no deal then British citizens who aren’t EU members will have to pay “foreign student” fees to study. It could also mean the loss of access to the ERASMUS programme which provides funding for an EU study year abroad.

Property ownership

British expats looking to return to the UK could have issues disposing of properties acquired in EU member states where they have lived. In addition to attracting capital gains liabilities, these properties may not provide enough equity to buy in the UK given the disparity between UK and EU house prices.

The value of sterling

A no deal situation will likely see the pound take another plunge. If that happens then UK expats could actually be at an advantage, especially those planning to return – as long as they are being paid in Euros. The value of any savings would increase if transferred into pounds and UK property would be more affordable with more Euros to the pound.

Perhaps the biggest issue that expats face is the chaos that could ensue in a no deal situation. It would require negotiation with 27 different countries to sort out all of the above and, unlike in the UK, Brexit is just not such a pressing priority for other nations.

Related Stories

You're reading the blog post The Impact of Brexit on UK Expats that was written by and first published on Getting Loans and Credit & Managing Money.


Link to Category: Business Blogs

Or if you prefer use one of our linkware images? Click here

Social Bookmarks


Available Upgrade

If you are the owner of Solution Loans Personal Finance Blog, or someone who enjoys this blog why not upgrade it to a Featured Listing or Permanent Listing?


Use Blogger/Blogspot? Than submit your blog for free to our blog directory.