Which pensioners will benefit from the latest EU budget?
By Kate WalkerBBC Sport pensioners who are not at work could lose up to £500 a year under proposals to raise the UK’s contribution to the EU budget.
It comes as ministers in Brussels are expected to outline plans to cut the UK rebate for EU pensioners by half over the next five years, to £10,000.
The cuts would mean some pensioners could see their pension rises fall by up to 50% and could be forced to take on even more debt to meet their pensions.
Theresa May, the Home Secretary, is expected to make the announcement at the end of this month, after which she will have to justify the new £3bn.
It is one of the first major policy announcements by the Conservative Party in more than a year and it is expected the UK will have more than £100bn in the EU coffers by 2021-22.
It also comes as pensioners are set to be hit with the biggest cuts since the financial crisis.
The latest budget for the EU, published on Thursday, states the EU’s contributions to the UK were worth £1.6tn in 2019-20.
The amount of money the UK would receive in 2021-23 is based on current levels of EU contributions and the 2020-21 EU budget figure is based at £1,898bn.
This means that in 2019/20, the UK could receive £3,000 less per year than it is currently receiving.
But the budget is being written to reflect changes in the value of the UK debt as a result of the EU referendum and the Chancellor Philip Hammond has promised that all pensioners would receive at least a modest increase.
Mrs May’s announcement is expected on Thursday morning.
It was widely expected that the UK pensioners’ share of EU funds would fall by as much as a third in 2021, but that is now expected to be at least in part due to the cuts to the rebate for the UK.
A spokesman for the British Chambers of Commerce (BCC) said: “The UK will now receive £2,500 less per annum, meaning the total amount of UK contributions to EU budgets is expected drop by £3 billion in 2021.”
It comes after the UK government has revealed the amount of EU funding that is set to increase by more than half a billion pounds next year.
This is more than double the amount that was initially agreed, as well as a rise in the UK budget by an extra £500 per annUM.
The £1bn increase in 2020/21 was to cover the EU bailout of the banks and other financial institutions.