EU legal threat to UK benefits changes ‘could result in £2bn bill’

Iain Duncan Smith says move would break ‘vital link’ between taxpayers and their own government Possible legal action by the European commission over Britain’s plans to limit benefits claims for those overseas could leave taxpayers with a £2bn bill, the work and pensions secretary, Iain Duncan Smith, has said. Duncan Smith told the Telegraph the move threatened to break the “vital link” that should exist between taxpayers and their own government. He is spearheading reforms to the UK’s benefits system, bringing in the universal credit. The commission is reportedly threatening legal action against the UK because of the “right to reside” element of the habitual residence test. Britain has been given two months in which to fall into line with EU rules, and could face the prospect of the commission taking the case to the EU’s court of justice, it has been reported. Duncan Smith said: “These new proposals pose a fundamental challenge to the UK’s social contract. They could mean the British taxpayer paying out over £2bn extra a year in benefits to people who have no connection to our country and who have never paid in a penny in tax. “This threatens to break the vital link which should exist between taxpayers and their own government.” He added: “The EU settlement is supposed to protect the right of member states to make their own social security arrangements. “But we are now seeing a rising tide of judgments from the European institutions using other legal avenues to erode away these rights, and we should be gravely concerned. “As if this week’s decision was not bad enough, we are also fighting increasing demands for the UK to pay benefits to those who have long since moved abroad, and who may never have made more than a token contribution to UK society.” Iain Duncan Smith Welfare Liberal-Conservative coalition Benefits European Union guardian.co.uk

Posted by on September 30, 2011. Filed under News, Politics, World News. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.