30 April 2004 - Regulations to protect benefit system and welcome workers
New regulations laid today will ensure people from the countries that join the European Union on May 1st cannot abuse Britain’s benefit system.
Genuine workers who contribute to the prosperity of the country will be welcome. But nobody will be able to claim income-related benefits without meeting new residential rules and registering as a worker.
Work and Pensions Secretary Andrew Smith said: “The British economy is open to those who want to work but not open to those who want to take advantage of the benefit system. The rules we are introducing today are strong but fair and will mean that only those who are working will get the same rights as UK citizens. This is a commonsense approach that is good for Britain and good for our economy.
“We have the best labour market in the world with full employment in many areas. There are half a million vacancies in our job market and if a Polish radiographer or a Czech plumber wants to work here that will be good for them, good for their employers and good for Britain. They will add to the country’s prosperity by paying taxes and National Insurance contributions.
“Given everyone in the new enlarged EU has free movement after May 1st, it is better that we allow people to come here and work legally rather than have them pushed into the black market where they avoid paying tax, undercut legal British workers and endanger themselves.”
The Social Security (Habitual Residence) Amendment Regulations 2004 were laid in parliament this morning and published this afternoon.
The income-related benefits affected are Income Support, Pension Credit, Jobseeker’s Allowance, Housing Benefit and Council Tax Benefit .
As already announced, the changes will control access to income-related benefits while working within EC law.
Notes for editors
- Claimants currently have to show that they are habitually resident in the Common Travel Area (the UK, Channel Islands, Isle of Man or Republic of Ireland) before they become entitled to Income Support, income-based Jobseeker’s Allowance, Housing Benefit, Council Tax Benefit and Pension Credit. From 1 May, as a result of the regulations laid today, they will need to show that they have a right to reside as well. The Government’s intention to introduce these regulations was announced by David Blunkett on 23 February.
- The right of EEA nationals to reside in the Common Travel Area depends on their economic status. Workers and the self-employed have a right to reside here. Those who are economically inactive – such as students, pensioners, or lone parents – have a right to reside provided they are self-sufficient – i.e. they have sufficient resources to avoid becoming an unreasonable burden on the State’s benefit system.
- Non-UK or non-EEA nationals have the right to reside in the UK if they have leave to enter or remain granted by the Home Office. Many will be granted leave, which is conditional on their having no recourse to public funds (including income-related benefits).
- The regulations come into effect on the date of accession to the EU of ten new member states on 1 May 2004. Under the terms of Home Office regulations, a registration scheme will be introduced at the same time to control access to the labour market for workers from the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia and Slovenia. Nationals of these states will be able to take up employment in the UK, providing they are authorised under the Worker Registration Scheme to work for the employer concerned. If they do not have a job but come here in the hope of finding employment they will need to be self-sufficient.
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