This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.bbc.co.uk/news/uk-33850247

The article has changed 9 times. There is an RSS feed of changes available.

Version 1 Version 2
Tax credit plan 'could hit thousands of young Britons' EU migrant tax credit plan 'could hit thousands of Britons'
(about 1 hour later)
Thousands of young British people could miss out on tax credits and housing benefits under new government plans. 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 the government has been told such a move would be "direct discrimination", prompting it to consider a four-year residency test from the age of 18 that would also apply to Britons. 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, David Cameron said: "Changes to welfare - to cut EU migration - will be an absolute requirement in the negotiation that I'm going to undertake." 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, 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 - 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, "however the legal arguments to do so are extremely weak". 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 circles about strongly lobbying for the change ahead of parliamentary elections in Poland in October, in case they influence the outcome. 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: