EU nationals and benefits Update on 2014 changes

1. EU nationals and benefitsUpdate on 2014 changes Patricia Carty, Law Centre (NI) September 2014

2. 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 2014 • New tougher habitual residence test

3. 2014 changes 1 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 2014 • Housing 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

4. 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

5. 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

6. 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

7. First things first • Clarify the person’s immigration status • EEA national • Family member of EEA national • British citizen • Refugee • Other immigration status

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

9. 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

10. Check any passport or residence documents

11. 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

12. 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 a person 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

13. EEA national – Extended right of residence • Jobseekers • Workers • Those retaining worker status • The self employed • Self sufficient • Students

14. Jobseekers New rules affect Jobseekers

15. 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

16. 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.

17. Workers New rules affect EU workers and former workers

18. Workers • Worker status is important as workers are exempt from restrictions • New 2 tier test • Minimum earnings of at least £149 per week for three months; or else • Considering number of hours, duration, rate of pay is work genuine and effective and not marginal and ancillary

19. Self -employed New rules affect the self employed

20. 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

21. 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

22. Other rights to reside

23. Family members of a qualified person have a right to reside

24. 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

25. 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

26. 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!