If you are already claiming incapacity benefit in the UK then you are able to carry on claiming it if you move to Spain or become a resident. It is one of the few benefits that you can transfer, along with (believe it or not) the winter fuel allowance payment

Speak to the dept of work and pensions in Newcastle also.

You need to address health matters also, as your medical card I believe only covers you for a certain amount of time here, and also for emergency cover only. Call DWP in Newcastle again, on 0191 218 1999

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