The UK government has launched a hotline for reporting British benefit cheats living in Portugal.

This new hotline is similar to a successful initiative in Spain, which began in September 2008.

And this begs the question - where next?  In its drive to save taxpayer's money, perhaps the new UK coalition government will look to extend the scheme to other countries, which are becoming increasingly popular, as places to retire.

Lord Freud, Minister for Welfare Reform said: "Fraud abroad cost the taxpayer around £66 million last year. This money should be going to the people who need it most and not lining the pockets of criminals sunning themselves in places like Portugal.  We are determined to stop benefit thieves stealing from the British taxpayer."

Generally speaking, UK benefits can only be claimed if you reside in the UK, or the European Economic Area (EEA), Switzerland or Gibraltar.  Turkey is not in the EEA, so it is therefore illegal to claim benefits, (such as winter fuel payment), if you live there.  

You can of course claim your UK state pension - which is index linked.  And on a positive note, don't forget that many pensions can be taken tax free, if you are a resident of Turkey.  KTLN members can click here to read more about this.

For more information on claiming benefits whilst abroad, click here: Benefits Abroad.