EU nationals and benefits

Update on 2014 changes

Patricia Carty, Law Centre (NI)

September 2014

2014 changes

• 1 January 2014

Romanians and Bulgarians got full EU rights

IB JSA claims – 3 month residence in common travel area rule – in addition to habitual residence and R2R test

Tighter definition of jobseeker and worker status

20 January 2014New tougher habitual residence test

2014 changes1 March 2014 introduction of minimum earnings

threshold to determine if a person is a worker or self employed person – this may exclude some workers from housing benefit and other means tested benefits.

1 April 2014Housing benefit amended so that if a

person’s only right to reside is as an EU jobseeker s/he will not be entitled to housing benefit

2014 changes

• July 2014

Child benefit and child tax credit - introduction of 3 month living in United Kingdom rule

First “genuine prospect of work interviews” for EU nationals who have been on jobseeker’s allowance six months – those who fail are being refused means tested benefits including housing benefit

2014 changes

• 6 October 2014• Tougher habitual residence test will

apply to ESA, Pension Credit and Income Support

• The minimum earnings threshold will be introduced for ESA, Pension Credit and Income Support

2014 changes

• November 2014• There will be further changes to the

6 month period of entitlement to JSA. In some cases claimants will only receive three months of JSA

First things first

• Clarify the person’s immigration status

– EEA national– Family member of EEA national– British citizen– Refugee– Other immigration status

Don’t give immigration advice – refer to someone authorized to do this.

Who is an EEA national?

• 28 EU states: Austria, Belgium, Bulgaria, Croatia (subject to labour market restrictions) Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, UK

• Iceland, Norway, Liechtenstein• Swiss nationals have the same rights as

EEA nationals

Check any passport or residence documents

A2 Nationals

Romania and Bulgaria joined EU on 1 January 2007 and from 1 January 2014 nationals of Romania and Bulgaria have full access to the UK labour market

Habitual residence• Habitual residence in Common Travel area –

– United Kingdom– The Channel Islands– Isle of Man– Republic of Ireland

Now for income based jobseeker’s allowance aperson must also have been living in common

travel area for three months – also entitlement to

income based jobseeker’s allowance no longer leads to entitlement to housing benefit as a jobseeker

EEA national – Extended right of residence

• Jobseekers• Workers• Those retaining worker status• The self employed• Self sufficient• Students

Jobseekers

New rules affect Jobseekers

Jobseekers

• Must be able to show a genuine prospect of getting employment

• After 6 months on JSA an EEA national’s income based jobseeker’s allowance will end unless s/he can show compelling evidence of a genuine prospect of getting work

Jobseekers

• From 1 April 2014 if a person’s only right to reside is as an EEA jobseeker then s/he will not be entitled to housing benefit

• Those entitled to housing benefit and income based jsa on 1 April 2014 will have transitional protection until there is a change of circumstances or until jobseekers allowance is removed.

Workers

New rules affect EU workers and former workers

Workers• Worker status is important as

workers are exempt from restrictions

• New 2 tier test1. Minimum earnings of at least £149

per week for three months; or else2. Considering number of hours,

duration, rate of pay is work genuine and effective and not marginal and ancillary

Self -employed

New rules affect the self employed

Self employed

• A similar minimum earnings rule will apply but guidance recognises that those who are self employed may not earn this during especially during a start up period

• All the facts will need to be looked at

Worker/ self employed

• If a person has worker or retained worker status s/he will be entitled to benefits

• If a person has self employed status or retains it due to an interruption caused by incapacity s/he will be entitled to all benefits

• Housing benefit may be affected by these rules

Other rights to reside

Family members of a qualified person have a right to reside

Permanent right of residence• 5 yrs residence as a qualified

person or family member of qualified person

• People retiring who have been in UK for 3 years and have worked for preceding year

• People incapacitated who worked in UK for 2 years or incapacitated due to work

Primary Carer of a child of a former worker who is in education – Generally up to 18 – may apply up to 21 if child still in education

Feel free to phone the Law Centre – our advice line is open from 9.30 – 1pm each day. Telephone 90244401. Also come along to our practitioner groups and training events!