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BRITS IN ITALY

‘It’s a disaster’: How Brits in Italy are being hit by drop in value of pound

We asked our British readers to explain how the recent drop in the value of the pound will affect their lives in Italy. Here’s what they had to say.

Sterling banknotes.
The overwhelming response from Britons in Italy was that the drop in value of the pound will have a negative impact on their lives. Photo by Tolga Akmen / AFP

The British pound experienced a record 37-year low against the dollar on September 24th, following on from a months-long fall in its value.

Though the Bank of England has managed to prevent a “material risk” to the country’s stability by buying government bonds, UK markets remain highly volatile and the slide in the value of the sterling seems to have already caused the price of goods and services in the UK to climb.

That’s in the UK, but how about Britons living in Italy? 

Last week, we asked our readers to tell us how they’ve already been affected and what they expect the ongoing impact of a weak pound will be on their lives unless the currency bounces back.  

READ ALSO: Climate zones: When can you turn your heating on Italy this winter?

We received answers to our survey from all corners of the boot, from Bolzano, Trentino Alto-Adige to Oria, Puglia. 

The overwhelming response was that the pound’s drop in value in Italy will negatively impact the lives of UK nationals in Italy.

Expectedly, most respondents pointed to unfavourable exchange rates as being the most negative consequence of the sterling’s slump, with many expressing concern about having to transfer savings from a UK account to an Italian one. 

“For the moment, it is a disaster; I can’t even think of making a transfer of pounds into euros,” said one reader living in the capital, Rome. 

Another Briton, Carol Lewis, living in Collazzone, Umbria, had similar worries. She said: “All my pensions are paid in sterling. It is making what was already a bit tight financially post-brexit even tighter.”

“Combined with increased costs generally, we are having to cut back a lot on extras and be more careful about how we spend our money.”

Pound coins and banknotes.

Following on from the pound’s drop in value, Britons in Italy are expressing concern over unfavourable exchange rates when transferring money from UK accounts. Photo by Tolga Akmen / AFP

Alison Reith, from San Salvatore Monferrato, Piedmont, also acknowledged that the pound’s weakness was putting Brits at a serious disadvantage when transferring money from overseas. 

However, she also pointed the finger at soaring living costs in Italy, admitting that it’ll be difficult to “pay for petrol, food and heating” this winter and “cuts on all costs” will sadly have to be made.  

READ ALSO: EXPLAINED: How much are energy prices rising in Italy this autumn? 

While sharing that expense cuts were in the cards for the cold season, many readers told us how they were trying to overcome their recent money-transferring adversities.

Julius Vloothuis, 75, living in Naples, described money transfer platform Wise, formerly known as Transferwise, as somewhat of a “saving grace” – the website allows clients to move money practically free of charge and sends out alerts when the market has favourable exchange rates.

On a similar note, Dennis, living in Rome, advised fellow countrymen to “act as an investor” and watch the exchange rates on a regular basis.

While most readers were reasonably concerned about the pound’s downswing, some responded to our survey by saying that the event would have little impact on their lives. 

Leslie Whitehouse, a retired teacher living in Bolzano, said that “unless massive, a fall in the rate of pound sterling against the euro will not affect my life”. 

Similarly, Iain Gosling, 73, told us that, having “bought a block of euros last year via [currency exchange service] TORFX”, rate fluctuations haven’t really affected his family thus far. 

Finally, some The Local Italy readers confided that they were actually quite happy with the pound dropping in value.

George Newman, 32, from Viareggio, Tuscany said: “Great, buying a house in the UK now and earning in euros. Tax cut to stamp duty too!! Winning!”

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HEALTH

Brits living in Italy under post-Brexit rules won’t pay healthcare fee

British nationals who moved to Italy before January 1st 2021 are exempt from paying Italian healthcare fees, according to an update on the UK government website for British nationals overseas.

Brits living in Italy under post-Brexit rules won't pay healthcare fee

Italian authorities have clarified that British residents covered by the post-Brexit withdrawal agreement (WA) should not be subject to fees for using the Italian national health service (servizio sanitario nazionale, or SSN), according to the update published on the British government’s Living in Italy website on Friday afternoon.

“The Italian government has recently decided that British nationals who entered and have been living in Italy prior to January 1st 2021 and are beneficiaries of the Withdrawal Agreement can register for free with the Italian national health system and are therefore not required to make voluntary contributions,” it read.

READ ALSO: Trouble proving residency rights leaves Brits in Italy paying €2k health charge

The unexpected announcement came as a relief to many of The Local’s British readers, who have been battling local authorities’ varying interpretations of the rules for those who are covered by the WA.

However there were no further details available immediately about how the rules would work or how this would be communicated to local healthcare offices around Italy.

The British government’s update stated: “We continue to engage to fully understand guidelines and requirements,” and added that any updates would be published on the website.

Clarissa Killwick, citizens’ rights campaigner with Beyond Brexit, told The Local the update on Friday had come as “a big surprise”.

“Obviously very good news, but we need to wait and see the detail as to how this is going to work.”

READ ALSO: Why Brits in Italy say they’ve been ‘hung out to dry’ over €2K healthcare fee

“There has been a very positive reaction from our members,” she said. “I can feel a great weight lifting from those who have gone through a lot of anxiety since the new minimum of €2,000 for SSN voluntary contributions was first mooted last October.”

Italy’s government confirmed the new minimum €2,000 charge applies from the start of 2024, though there has been a persistent lack of clarity over exactly who it applies to.

In the absence of clear national guidelines, local health authorities have reportedly applied differing interpretations of the rules for WA beneficiaries, with several British nationals reporting being wrongly charged the fee in January.

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