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EU migrant tax credit plan 'could hit thousands of Britons' | |
(about 1 hour later) | |
Thousands of young British people could lose the right to claim benefits for four years as part of government plans to tighten the rules for EU migrants. | |
Stopping EU migrants getting benefits for four years is a key part of the UK's negotiations of its EU membership. | Stopping EU migrants getting benefits for four years is a key part of the UK's negotiations of its EU membership. |
But lawyers say applying such a rule to migrants alone would breach EU laws, with ministers now looking at extending the test to all Britons aged 18. | |
The government said it would not speculate on the plans. | The government said it would not speculate on the plans. |
In a speech in November, Prime Minister David Cameron said: "Changes to welfare - to cut EU migration - will be an absolute requirement in the negotiation that I'm going to undertake." | |
He urged EU leaders to accede to his "reasonable" proposals, the centrepiece of which is a demand that migrants arriving in the UK have to wait four years to get access to certain benefits, such as tax credits and child benefit. | He urged EU leaders to accede to his "reasonable" proposals, the centrepiece of which is a demand that migrants arriving in the UK have to wait four years to get access to certain benefits, such as tax credits and child benefit. |
'Prohibited under EU law' | 'Prohibited under EU law' |
The four-year wait requires an EU treaty change to enact, which would have to be agreed by all 28 EU nations. | The four-year wait requires an EU treaty change to enact, which would have to be agreed by all 28 EU nations. |
And government lawyers have now written to ministers setting out the legal context for such a move. | And government lawyers have now written to ministers setting out the legal context for such a move. |
The document - which has been seen by BBC News - said: "Imposing additional requirements on EU workers that do not apply to a member state's own workers constitutes direct discrimination which is prohibited under current EU law." | |
The document goes on to say the case for restricting EU migrants' access to certain benefits can be made using secondary legislation, but warned: "However, the legal arguments to do so are extremely weak". | |
The government has therefore drawn up plans for all applicants for tax credits, including British citizens - a move that would largely affect people claiming working tax credits and housing benefits. | The government has therefore drawn up plans for all applicants for tax credits, including British citizens - a move that would largely affect people claiming working tax credits and housing benefits. |
In order to receive the benefits, people would need to have been legally resident in the UK for four years. | In order to receive the benefits, people would need to have been legally resident in the UK for four years. |
The test would apply from the age of 18, meaning that anyone aged under 22 who had lived here all their life would not be eligible for tax credits. | The test would apply from the age of 18, meaning that anyone aged under 22 who had lived here all their life would not be eligible for tax credits. |
Currently, about 50,000 UK citizens under the age of 22 receive tax credits, and most of them have children. | Currently, about 50,000 UK citizens under the age of 22 receive tax credits, and most of them have children. |
Tax credits are essentially a means of re-distributing income by paying money to families raising children and working people on low incomes. | Tax credits are essentially a means of re-distributing income by paying money to families raising children and working people on low incomes. |
The BBC has learned that the Work and Pensions Secretary Iain Duncan Smith has pushed for a harder line to be taken with migrants. | The BBC has learned that the Work and Pensions Secretary Iain Duncan Smith has pushed for a harder line to be taken with migrants. |
As well as the residency test, the Eurosceptic former Tory leader has pushed for EU nationals to have to work in the UK for four years before they become eligible. | As well as the residency test, the Eurosceptic former Tory leader has pushed for EU nationals to have to work in the UK for four years before they become eligible. |
A source said Mr Duncan Smith has always believed people should contribute to the welfare system before they take out. | A source said Mr Duncan Smith has always believed people should contribute to the welfare system before they take out. |
'Red line' | 'Red line' |
Pushing for tougher benefit rules for EU migrants has been strongly opposed by the Polish government. | Pushing for tougher benefit rules for EU migrants has been strongly opposed by the Polish government. |
The country's Europe minister, Rafal Trzaskowski told Newsnight last year proposals to discriminate on the grounds of nationality would be a "red line" issue for his country. | The country's Europe minister, Rafal Trzaskowski told Newsnight last year proposals to discriminate on the grounds of nationality would be a "red line" issue for his country. |
There is therefore nervousness in Whitehall about lobbying for the change ahead of parliamentary elections in Poland in October, in case they influence the outcome. | |
Applying any new rules solely to EU migrants, under existing European rules, risks being challenged in the courts by the European Commission under anti-discriminatory legislation. | Applying any new rules solely to EU migrants, under existing European rules, risks being challenged in the courts by the European Commission under anti-discriminatory legislation. |
The European Commission has already taken the government to court over its habitual residence test. The test ensures that only EU nationals with a "right to reside" in the UK can get certain benefits, such as income support, housing benefit and universal credit. | The European Commission has already taken the government to court over its habitual residence test. The test ensures that only EU nationals with a "right to reside" in the UK can get certain benefits, such as income support, housing benefit and universal credit. |
At a hearing in Luxembourg in June at the Court of Justice - the EU's highest court - the Commission argued that the government "has created a situation of direct discrimination" by placing extra restrictions on EU nationals that do not apply to British citizens. | At a hearing in Luxembourg in June at the Court of Justice - the EU's highest court - the Commission argued that the government "has created a situation of direct discrimination" by placing extra restrictions on EU nationals that do not apply to British citizens. |
A government spokeswoman said: "We've already taken action to protect the benefits system and ensure that EU migrants come to this country for the right reasons and to contribute to the economy. | A government spokeswoman said: "We've already taken action to protect the benefits system and ensure that EU migrants come to this country for the right reasons and to contribute to the economy. |
"Now we're focused on re-negotiating our relationship with Europe and getting a better deal for Britons, and we won't speculate on other options." | "Now we're focused on re-negotiating our relationship with Europe and getting a better deal for Britons, and we won't speculate on other options." |
What is your reaction to the new government plans? Are you affected by the issues raised in this story? You can share your comments by emailing haveyoursay@bbc.co.uk. | What is your reaction to the new government plans? Are you affected by the issues raised in this story? You can share your comments by emailing haveyoursay@bbc.co.uk. |
Please include a contact number if you are willing to speak to a BBC journalist. You can also contact us in the following ways: | Please include a contact number if you are willing to speak to a BBC journalist. You can also contact us in the following ways: |