European Union nationals who lose their jobs while living in Britain could end up reliant on “friends and charity” under a government crackdown on benefit payments to foreigners, advisers to the work and pensions secretary have warned.
An attempt to restrict benefits access for those born outside the UK has raised concerns among Iain Duncan Smith’s own advisory body that people who already regard the UK as their home will suffer.
The DWP social security advisory committee warns that “a significant number of families could suffer hardship”. In a letter to Duncan Smith, it adds: “In the case of family or relationship breakdown, some people would be wholly reliant on friends, charities and local authorities for help. This would particularly be the case for people who have been in the country and contributed for some time. For them, in practical terms, ‘home’ is here.”
Under the present system, foreigners can claim jobseeker’s allowance worth up to £72.50 a week after being in Britain for three months. But under the universal credit reforms migrants will have no access to means-tested support before they have sufficiently contributed to the UK through work.
Paul Gray, chair of the council, expressed his concerns on 4 March. Duncan Smith wrote back on 9 March to say he did not believe the concerns were warranted, though he admitted that exemptions to the changes may be brought in if future problems arose. He wrote: “For those already in the UK, there are a number of ways in which European Economic Area nationals who have been working in the UK can still access universal credit. In particular, those who have been working but lose their job can retain their worker status so will continue to have full access to UC while they are exercising this right.
“In addition, those who have made sufficient contributions will still be able to claim contributions-based jobseeker’s allowance or employment and support allowance.”
He said that those in the UK for a sustained period would also acquire a permanent right of residence and be able to access universal credit.
Duncan Smith added that the DWP was analysing “hotspots” in the UK where EEA nationals were living so as to be aware of where problems could arise. But despite these reassurances Duncan Smith has previously said a future Tory government would hit EEA nationals living and working in the UK. Last November he said the government would need to start blocking people who come with the intention to work, “then can claim full tax credits though they have made no contribution”.
Figures from HM Revenue and Customs reveal that 17% of the 2.45 million people currently claiming child tax credit were foreign nationals when they were given their national insurance numbers.
