It is the replacement to the E111. One thing to be aware of is that it's got an expiory date on it, I think it's valid for 5 years. I can't remember if the E111 only lasted a certain time, but you could just go to a post office and get one over the coutner - with the EHIC you have to apply and wait for a personalised printed plastic card to be sent throught the post.
At least it's free... we're going away shortly to Cyprus, and it's blooming annoying paying so much for children's passports when they only last 5 years and we're only likely to use them twice in that 5 years!
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