The head of an influential committee of MPs has urged the Government to make sure British expatriates are not left without their pensions as a result of a ‘cliff-edge’ Brexit.
Treasury select committee chair Nicky Morgan has written a letter to Chancellor Philip Hammond warning over the future of long-term pensions and insurance policies that are currently sold by UK companies throughout the EU – and vice versa – based on passporting deals.
In her letter, Morgan asks the Government to clarify its position and calls on Hammond to raise issues such as insurers paying out on cross-border contracts with EU officials.
The letter reads: “The possibility that UK providers may not be legally able to pay out pensions or insurance contracts to citizens in the EU — including UK expats — is a stark example of the consequences of a cliff-edge Brexit.”
A Treasury spokesman said the Government wanted to avoid a cliff-edge Brexit and would respond to the committee in due course.
Industry bodies such as the Association of British Insurers have been vocal on the need for clear rules post-Brexit on cross-border contracts, and have noted that transitional arrangements would not be long enough to cover many long-term products.