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LIVING IN DENMARK

Banking giant Barclays to close all accounts of Brits living in Denmark

UK nationals living in Denmark have begun to receive letters from their bank telling them that their accounts will be closed, in an apparent post-Brexit change.

Banking giant Barclays to close all accounts of Brits living in Denmark
A branch of Barclays Bank in London. Barclays has written to customers resident in the EU to inform them it will be closing their accounts. File photo: Peter Nicholls/Reuters/Ritzau Scanpix

Customers of Barclays Bank who are living in EU countries have been receiving letters telling them that their UK accounts will be closed by the end of the year. There appears not to be an option to register for a different account.

Numerous readers of The Local have contacted us to report receiving either letters or messages in their online banking telling them that their accounts would be closed because of their residency.

A Barclays spokesperson told The Local: “As a ring fenced bank, our Barclays UK products are designed for customers within the UK.

“We will no longer be offering services to personal current account or savings customers (excluding ISAs) within the European Economic Area. We are contacting impacted customers to give them advance notice of this decision and outline the next steps they need to take.”  

Customers are being given six months to make alternative arrangements. The changes affect all personal current accounts or savings accounts, but do not affect ISAs, loans or mortgages.

During the Brexit transition period Barclays closed Barclaycard accounts of customers in the EU, but did not indicate any changes to standard bank accounts.

Around the same time, several other British high street banks began closing accounts of British customers who live in the EU.

UK nationals who live in Denmark sometimes maintain at least one UK bank account in addition to a Danish account. This is sometimes just for savings, while others use their accounts regularly to receive income such as pensions or income from rental property or – for remote workers – to receive income for work done in the UK.

Not having a UK bank account can make financial transactions in the UK more complicated or incur extra banking fees.

Since Brexit, the UK banking sector no longer has access to the ‘passporting’ system which allows banks to operate in multiple EU countries without having to apply for a separate banking licence for each country.

And it seems that many UK high street banks are deciding that the extra paperwork is not worth the hassle and are withdrawing completely from certain EU markets. 

When British banks began withdrawing services from customers in the EU in 2020, a UK government spokesman told British newspaper The Times that “the provision of banking services is a commercial decision for firms based on a number of factors” so Brits in Denmark probably shouldn’t hold their breath for any help from that direction.

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ENERGY

Denmark gives cash to 400,000 households hit by energy costs

A cash payout of 6,000 kroner was sent to around 400,000 households in Dennmark on Wednesday in a measure intended to relieve people struggling with high energy costs.

Denmark gives cash to 400,000 households hit by energy costs

The one-off payouts, which were agreed by parliament in March, were sent on Wednesday to over 400,000 households which meet the criteria set to receive the relief.

“We hope that this outstretched hand of 6,000 kroner will be a helping hand in a difficult time for Danes who are finding it hardest of all due to increasing heating prices,” the minister for climate, energy and critical supplies, Dan Jørgensen, said in a statement.

All residents of Denmark are eligible to receive the payments, provided their household meets the relevant criteria – not just Danish nationals as could be inferred from Jørgensen’s statement.

“It was important for the parties behind this agreement to help in a way that could be felt and in a targeted way. We think this cash will make a difference,” he said.

Households with a collective pre-tax income of under 706,000 kroner are eligible for the one-off cash boosts, which are costing the government 2.4 billion kroner.

Additionally, the household should be primarily heated by individual gas heaters, electronic radiators or be located in a district heating area in which the heating is produced by at least 65 percent gas.

Eligible houses do not have to apply for the cheque and will receive the payment automatically to their designated account (Nemkonto). In households with more than one person, the oldest member of the household receives the payment.

Errors in registration data can result in households which meet the criteria not receiving payments automatically, according to the Danish Energy Agency. People who believe that their household meets the criteria, but have not received the money, will be able to apply for it to be sent to them at a later date. Application will be possible from January 2023. 

Jørgensen said on Wednesday that the government did not expect any further cash payouts to be made to homes heated by gas. Instead, the government’s focus is to move away from dependence on gas as an energy source.

“Before the summer holidays we made a plan that ensures we phase out gas as a heating source, he said.

READ ALSO: Denmark announces major plan to replace gas heating in homes

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