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Darling comments hit expat pensions
Pound drops to lowest level ever against euro as UK chancellor predicts “worst economic crisis” in 60 years.
COMMENTS by UK Chancellor Alistair Darling that Britain faces its worst economic crisis in 60 years have plunged the pound to a record low against the euro.
Sterling is currently worth 1.23 euros per pound having hit 1.2289 - a level not seen since the creation of the currency in 1999.
The impact will further stretch the finances of pensioners living abroad and those who rely on income from the UK.
In October 2007 £1 bought €1.44 but the level has dropped consistently since. The result has been a 15% drop in the value of British income such as pensions, when spent in France.
The dropping value comes at a time of rising inflation and prices, stretching the finances of many expats.
In an interview in The Guardian on Saturday Alistair Darling said the economic forecasts for the UK “are arguably the worst they've been in 60 years. And I think it's going to be more profound and long lasting than people thought.”
The pound has also dropped against the dollar.