The current legislation allows non European Union residents, aged 60 or over, to retire to Britain if they have a net disposable yearly income of at least £25,000 and are able to accommodate themselves and any dependents without needing public funds.

They are not required to have worked or paid taxes in the UK and are entitled to free healthcare on arrival.

After five years they have full access to the benefit system and are also entitled to apply for settlement and a British passport. The Home Office is set to change the rules, saying the policy did not fit in with the idea of ‘earned citizenship’.

As the rules do not apply to EU citizens, there is no risk of countries such as Spain - where thousands of Britons retire to every year - putting in place reciprocal arrangements.