British pensioners who live in the EU will continue to see their state pension payments increased each year after Brexit, the Government has indicated.

There had been fears that millions of expats who live in Europe would see their pensions "frozen", meaning their value would be steadily eroded over time. This is the situation in countries such as Canada, Australia and New Zealand, where British state pension payments to expats are not increased each year in line with inflation.

But an official update, published quietly last month, confirms that the British government intends to continue increasing state pensions to expats in the EU after the UK leaves the EU in 2019. The update showed that Britain and the EU had the same position on annual increases: that they would continue to be made as now after Brexit.

In addition, National Insurance contributions made while abroad will also continue to count towards the state pension. You get the full state pension, worth £159.55 a week, if you have 35 or more "qualifying" NI years on your record.

James Walsh, of the Pensions & Lifetime Savings Association, a trade body, said: "The UK and EU have agreed that the UK will continue paying and uprating state pensions to UK citizens living in EU countries after Brexit – and vice versa.