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Grayling being quizzed on benefits for non-EU nationals | |
(about 4 hours later) | |
Employment Minister Chris Grayling is being questioned by MPs about the UK's dispute with Brussels over welfare entitlements for non-EU nationals. | |
The UK is suing over rules it says may allow citizens from European countries outside the EU to receive benefits without working or paying taxes. | The UK is suing over rules it says may allow citizens from European countries outside the EU to receive benefits without working or paying taxes. |
The government has a wider disagreement with the EU over eligibility criteria for benefits for EU citizens in the UK. | The government has a wider disagreement with the EU over eligibility criteria for benefits for EU citizens in the UK. |
The European Commission says a feared rise in "benefit tourism" is unfounded. | The European Commission says a feared rise in "benefit tourism" is unfounded. |
Mr Grayling is facing questions from the Commons European Scrutiny Committee, chaired by Conservative MP Bill Cash, which examines EU legislation. | |
The focus of the hearing is a dispute over whether the UK is obliged to pay benefits in certain circumstances to nationals from Norway, Iceland and Liechtenstein as a result of agreements between the EU and the European Economic Area countries. | The focus of the hearing is a dispute over whether the UK is obliged to pay benefits in certain circumstances to nationals from Norway, Iceland and Liechtenstein as a result of agreements between the EU and the European Economic Area countries. |
The UK argues it has an opt-out, under existing treaties, from rules introduced last year to "co-ordinate social security systems" between the EU and EEA. | The UK argues it has an opt-out, under existing treaties, from rules introduced last year to "co-ordinate social security systems" between the EU and EEA. |
'Clear message' | 'Clear message' |
The UK says it is within its right to stop "non-active" migrants from outside the EU receiving benefits and has taken the case to the European Court of Justice (ECJ) arguing that an EU decision in July was legally unsound and therefore invalid. | The UK says it is within its right to stop "non-active" migrants from outside the EU receiving benefits and has taken the case to the European Court of Justice (ECJ) arguing that an EU decision in July was legally unsound and therefore invalid. |
Ministers say nation states should remain in control of determining their own social security arrangements and the European Scrutiny Committee has previously expressed concerns the new rules could "extend" welfare entitlements to some people who are not working due to sickness, disability, or caring responsibilities. | Ministers say nation states should remain in control of determining their own social security arrangements and the European Scrutiny Committee has previously expressed concerns the new rules could "extend" welfare entitlements to some people who are not working due to sickness, disability, or caring responsibilities. |
The European Commission says the UK signed the association agreements with existing EEA members which means they are legally obliged to meet the cost of certain benefits - such as pensions - for those working in the UK and paying tax. | The European Commission says the UK signed the association agreements with existing EEA members which means they are legally obliged to meet the cost of certain benefits - such as pensions - for those working in the UK and paying tax. |
But it says that it only applies to non-EU nationals who are legally entitled to live and work in the UK and that the UK remains in "total control" of who enters the UK and is allowed to work here. | But it says that it only applies to non-EU nationals who are legally entitled to live and work in the UK and that the UK remains in "total control" of who enters the UK and is allowed to work here. |
The EU and UK are already at loggerheads over the wider issue of criteria for EU-wide benefits with Brussels saying the UK is contravening EU law by making it easier for UK citizens to obtain certain benefits than nationals of other EU states. | The EU and UK are already at loggerheads over the wider issue of criteria for EU-wide benefits with Brussels saying the UK is contravening EU law by making it easier for UK citizens to obtain certain benefits than nationals of other EU states. |
Ministers fear taxpayers could be forced into handing out more than £2bn to non-UK citizens - including so-called "benefits tourists" who are not looking for work - if the UK has to comply. | Ministers fear taxpayers could be forced into handing out more than £2bn to non-UK citizens - including so-called "benefits tourists" who are not looking for work - if the UK has to comply. |
But Brussels says it has no seen any "concrete evidence" of this and UK must explain how it is going to bring its legislation into line with EU law by the end of the year or face being referred to the ECJ. | But Brussels says it has no seen any "concrete evidence" of this and UK must explain how it is going to bring its legislation into line with EU law by the end of the year or face being referred to the ECJ. |
'Right to reside' | 'Right to reside' |
At the moment, the UK grants entitlements such as child benefit, child tax credit, state pension credit, jobseekers' allowance and employment and support allowance to those with a "right to reside". | At the moment, the UK grants entitlements such as child benefit, child tax credit, state pension credit, jobseekers' allowance and employment and support allowance to those with a "right to reside". |
The Commission says there are already EU-wide "habitual residence" rules which are strict enough and the UK is imposing an additional test, which indirectly discriminates against non-UK EU nationals. | The Commission says there are already EU-wide "habitual residence" rules which are strict enough and the UK is imposing an additional test, which indirectly discriminates against non-UK EU nationals. |
Factors taken into account when determining "habitual residence" include how long someone has been in the country, how integrated they are within their community, whether they rent or own property and whether their children go to school locally. | Factors taken into account when determining "habitual residence" include how long someone has been in the country, how integrated they are within their community, whether they rent or own property and whether their children go to school locally. |
The UK says there is no "statutory definition" of habitual residence and common sense must be used in interpreting the rules as well as relevant legal precedents. | The UK says there is no "statutory definition" of habitual residence and common sense must be used in interpreting the rules as well as relevant legal precedents. |
While UK nationals can easily prove their "right to reside" based on their UK citizenship, the Commission says other EU nationals have their applications heard on a case-by-case basis, which breaches rules giving all citizens equal rights within a single EU labour market. | While UK nationals can easily prove their "right to reside" based on their UK citizenship, the Commission says other EU nationals have their applications heard on a case-by-case basis, which breaches rules giving all citizens equal rights within a single EU labour market. |
The European Commission said it was prompted to act by the "huge number" of complaints from EU citizens living in the UK refused access to benefits and its legal arguments are "sound". | The European Commission said it was prompted to act by the "huge number" of complaints from EU citizens living in the UK refused access to benefits and its legal arguments are "sound". |