Saturday 3 August 2019 The Guardian •
Money^43
The UK’s role in the European health
insurance card scheme could endThe prices of foreign-made cars
could well rise after OctoberSaturday 3 August 2019 The Guardian
Money
Thhe UK’s role
insururance carHoliday money
How to get the most
from the weak pound
Repeated threats of a no-
deal Brexit have sent the
exchange rate tumbling. But
what can you do about it?
Miles Brignall reportsF
or anyone heading off
on their annual foreign
holiday, Boris Johnson’s
arrival in Downing Street
couldn’t have come at a
worse time. His repeated
threats that he will take Britain out
of the EU without a deal sent the
pound plunging further this week.
It leaves holidaymakers, who were
already feeling the currency heat,
facing their most expensive holiday
in years.
As the pound’s offi cial exchange
rate fell below €1.09 for the fi rst time
in 12 months on Tuesday – it has only
fallen lower than that once in the last
fi ve years – customers walking up to
Travelex desks at London airports
were being given just €0.91 for each
£1. If they wanted dollars, the rate
had collapsed to just $1.01.
Back in March, when many will
have booked their holiday, a pound
got you $1.33 or €1.17, so they have
seen a near 7% increase in costs –
before they have even got to the
airport. So what, if anything, can you
do about it?Get the best rate you can
Transfer your pounds at the most
favourable rates, and you’ll get 10%
more euros, or other currencies,
than you would if you just walk
up to the booth at the airport or
ferry terminal. A host of currency
suppliers will deliver your order to
your home or offi ce, or let you pick it
up from the local supermarket.
MoneySavingExpert’s travel
money website should be the fi rst
port of call, as it will tell you who’s
doing the best currency deals, in
real time. The very best rates are
invariably to be had from a host of
bureau de change based in central
London. You simply pre-order on thefi rm’s website, print a voucher, and
turn up perhaps an hour or two later.
This week several London offi ces of
ICE were off ering more than €1.084
per pound.
If you are outside London, do not
despair: the Post Offi ce , Sainsbury’s
and Tesco were off ering €1.071 on
Thursday – with Tesco a fraction
of a cent higher than the others. To
get these rates, you again have to
pre-order – using the store’s website.
The Post Offi ce says buyers can
pick up their euros and dollars two
hours after the web order is made.
Tesco will let you collect those same
currencies in four hours.What about using the local ATM?
Don’t, unless you have to. The
majority of Britons using a debit
card at a foreign ATM will be charged
a 2.75% or 2.99% non-sterling
transaction fee.
On top of that there is often
a separate ATM fee, which
is sometimes expressed as a
percentage of the amount taken out- typically a £1.50 fl at fee or a 1.5%-
2%. It means some banks charge
their standard current account
holders £9.50 for a £200 withdrawal
from an overseas ATM.
Is there an alternative?
The Halifax Clarity credit card has
no overseas fees when you use it
to buy things in shops or use cash
machines. ATM withdrawals incur
interest, even if you pay off the card
in full each month – but the charges
will be negligible.
The quicker and easier option is
a prepaid travel money card. There
are no credit checks – and once you
have loaded them up from your UK
bank account at a typical currency
conversion fee of 1%-2%, they can be
used abroad, just like any other bank
card – but (mostly) without hefty
charges.
The three standout cards, in
our view, are Caxton FX Black ,
Sainsbury’s Bank Cash Passport a nd
WeSwap – order today and it should
be with you inside a few days.losses, particularly if they are in low-
skilled positions.
If your job does look at risk – car
plants such as Ford and Vauxhall
come to mind – about the best
you can do is try to build up some
savings to tide you over. According
to the government’s Money Advice
Service , “a good rule of thumb
to give yourself a solid fi nancial
cushion is to have three months’
essential outgoings available in an
instant access savings account ”. But
sadly few people are able to save
that much. According to Aviva, low
income families typically only have
around £100 in savings.
- Driving abroad
The possible scenario
On a late autumn trip to the
continent, after Britain has crashed
out of the EU with no deal, you fi nd
yourself having been pulled over by
a gendarme 20km outside Calais. He/
she will want to see your UK driving
licence, your international driving
permit (IDP 1968), your insurance
green card, the car’s log book (V5
document) and a GB sticker. Tourists
fl ying into the EU and hiring a car
will also need an IDP in several
countries including Italy, France
and the Netherlands. It is this that is
likely to catch out future travellers.What you should do
If you are heading abroad after 31
October, you need to take all these
items with you. The Post Offi ce will
sell you an IDP for £5.50 – you’ll
need to show your UK licence and
passport. But they will only be
required in some countries following
a no-deal Brexit; tourists hiring a car
in Spain or Portugal won’t need one
for stays of up to six months.
If there is a deal, UK licence
holders will continue to be able
to drive using their UK driving
licence while visiting all EU and
EEA countries. Your car insurer will
supply your green card.- Health
The possible scenario
A no-deal crash-out leaves many of
the 1.3 million Brits living in the EU
facing a major problem – what will
happen if they are rushed to their
local hospital? A no-deal departure
ends the UK’s involvement in the
European health insurance card
scheme and other agreements
overnight. While it is bad news for
holidaymakers, it has the potential
to force many of those who live in
the EU to abandon their dream.What you can do
For those going on holiday, it is
simply a case of buying travel
insurance before you leave, and the
government is advising just that. For
those living abroad, Spain has said it
will guarantee continued healthcare
access to British expats and tourists
in the country until the end of 2020- provided the UK off ers Spaniards
here the same deal.
This is highly likely as the UK
government has said seeking
bilateral agreements to maintain
healthcare rights is a top priority.
In France, another country in
which lots of retired Brits live,
the position is more complicated,
particularly for those who are
more temporary – spending just six
months there at a time. They are
being advised to formalise their
residency where they can.
It’s been reported that France
is confi dent of reaching a bilateral
agreement with the UK on health
care – helped no doubt by the fact
that there are lots of French people
living and working in London.
72p
The value of a share in Lloyds
before the referendum. The bank
is now trading at 52p24%
The price of tuna could go up after a
no-deal Brexit; cheddar cheese could
go up by 20p a kilogramOther countries face the same
challenge. The problem for some
Brits is that those agreements will
not be in position by 31 October.
Those with dangerous ailments
may have to consider returning to
the UK temporarily.
Medicine availability is what
vexes people more seriously.
Critical and short shelf-life
medicines – some of which may
need to be refrigerated until they
are consumed – would be most
vulnerable in a no-deal scenario,
with fears they could be held up
amid chaos at the ports.
Already there are reports of
diabetics informally stockpiling
their own supplies of insulin by
giving themselves less on a daily
basis, with potentially dangerous
consequences.
But the government says the fears
are misplaced, as drug companies
have already been told to build up
an additional six weeks’ supply of
medicines to provide a buff er in the
event of gridlock at Dover.- Prices in the shops
The possible scenario
Two things could be triggered by a
crash-out Brexit : a further slide in
the value of sterling that results in
the price of imported goods rising;
and a complete change in the import
tariff system, which could see some
goods rise in price ( such as cars
from Germany) but others fall. The
Theresa May government said in
March that tariff s would be cut to
zero on 87% of imports to the UK as
part of a temporary no-deal plan ,
but prices of some imports including
meat, shoes and cars will go up.What you can do
The worry will be the products that
go up in price, and their availability.
Among the consumer goods that
will be hit are imports of beef,
prices of which will go up by almost
7%, cheddar cheese, up by about
£20 per 100kg, and imported fully
fi nished cars, which would attract
a 10.8% levy, or about £1,500 for an
average new car.
This suggests that if you have an
eye on a new BMW or Mercedes, it
might be worth bringing forward
your purchase to before October.
For other goods, the savings
from stockpiling in advance are
probably minimal. For example,
while offi cially the change in tariff s
means that tins of tuna could go up
by 24%, imported men’s wool jackets
by 12%, and men’s, women’s and
girls’ underpants made of synthetic
fi bre by 12%, the reality is that shops
will absorb some of the increase
or may substitute for domestically
produced or alternative suppliers.▼ Destinations such as Crete cost
more for Britons after the pound’s fall
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