Impact assessment

EEA and Swiss nationals' access to HMRC administered benefits

Published 30 June 2022

Project objectives

The UK left the European Union (EU) on 31 January 2020 and entered a transition period which ran until 31 December 2020.

Following the end of free movement, European Economic Area (EEA) and Swiss nationals in the UK need a domestic UK immigration status to continue to live in the UK and access benefits. In preparation for this, the Government introduced the EU Settlement Scheme (EUSS) for EEA and Swiss nationals resident in the UK before 1 January 2021 and their family members. The UK determined that this should be a constitutive scheme, meaning that EEA and Swiss nationals need to apply for an immigration status to protect their rights. The EUSS opened in March 2019 with a deadline for applications set for 30 June 2021 for EEA and Swiss nationals resident in the UK before 1 January 2021.

Following the end of the grace period on 30 June 2021, the introduction of the new immigration system meant that EEA and Swiss citizens have been required to have a valid UK immigration status in order to access benefits and public services here.

Phase 1 – Grace period: 1 January 2021 to 30 June 2021

Following the end of the transition period, EEA and Swiss nationals resident in the UK before 1 January 2021 but without a valid immigration status were given time (the grace period) to apply to the EUSS, with a deadline for applications set for 30 June 2021.

HMRC worked with the Home Office and Department for Work and Pensions (DWP) to undertake an extensive communications campaign to support customers to acquire the necessary immigration status before 30 June to ensure HMRC claimants and their family members could protect their right to continue accessing benefits and services. This included the issuing of targeted nudge letters, text messaging and messaging on HMRC’s app and social media as well as working with a range of external stakeholders to disseminate messaging.

HMRC also worked with the Home Office and DWP to identify those customers without a valid Immigration Status at the end of the grace period in order to move to the next phase of work, which would seek to encourage as many individuals as possible to make a late application to the EUSS.

Phase 2 and 3 – Post-grace period and compliance campaign: 30 June 2021 – Summer 2022

Following the end of the grace period on 30 June 2021, EEA and Swiss nationals have been required to have a valid UK immigration status in order to access benefits and public services in the UK. Where an existing claimant did not hold a valid immigration status and had not applied for one, payments beyond 30 June 2021 continued for a limited period of time. This is to ensure that HMRC is able to correctly identify individuals without status and use direct communication to encourage those without to apply to the EU Settlement Scheme. This exercise was conducted alongside DWP with support from the Home Office.

Customer groups affected

New Child Benefit EEA claimants (Phase 1 and 2).

Existing Child Benefit and tax credit claimants who may not have EUSS status (Phase 3).

What customers will need to do

What customers need to do as a result of the change

EEA and Swiss national customers resident in the UK before 1 January 2021 who have not yet done so need to apply to the EU Settlement Scheme to retain their entitlement to benefits or confirm whether they already hold entitlement.

How customers will access this service

Customers will use existing channels to apply for Child Benefit or notify of changes to their Child Benefit or tax credits award. Changes to GOV.UK content will ensure the customer has the appropriate information available to support their decision making on what they need to do and when. This will be complemented with direct customer messaging via letter and text message alongside messaging on making an application to the EUSS via the HMRC App, Social Media and stakeholder channels.

When customers need to do this

When they wish to apply for HMRC benefits or services, or need to confirm that they hold existing eligibility or EUSS status.

Assessing the impact

We assessed the equality impacts on all the protected characteristic groups in line with the Equality Act and Public Sector Equality Duty; and Section 75 of the Northern Ireland Act: Sex, Gender reassignment, Sexual orientation, Age, Religion or belief, Pregnancy and maternity, Marriage and civil partnership, People with dependents and those without, Political opinion (for Northern Ireland only).

There is no evidence to suggest any specific impacts on those customers within any of the protected characteristic groups (listed above). Extra support will be provided as required. 

Racial groups

Impact on customers

Child Benefit and tax credits is not awarded on the basis of nationality; this affects all claimants who are EEA/Swiss nationals equally irrespective of their country of origin.

Proposed mitigation

All groups have been included in the extensive communications campaign to support customers to acquire the necessary immigration status before 30 June 2021, to ensure HMRC claimants and their family members could protect their right to continue accessing benefits and services. This included the issuing of targeted nudge letters, text messages and messaging on HMRC’s app and social media as well as working with a range of external stakeholders to disseminate messaging. As a further step to encourage take-up after the deadline, HMRC issued an article through diaspora media outlets to reach those nationals in communities identified as having the highest percentage of benefit claimants without EUSS status.

Disabled and not disabled

Impact on customers

Child Benefit is awarded on the basis of being responsible for a child and the claimant being legally resident in the UK. No other criteria are applied on the basis of protected characteristics including disability.

For working tax credit, additional payments (known as ‘elements’) can be made for those with a disability or severe disability. For child tax credit, additional elements can be made for those with a disability, and a higher rate can be paid for those with responsibility for a child with a severe disability

Proposed mitigation

Customers who may require extra support in making an application to the EUSS can access a range of additional support via HMRC. Extra support is also available from the Home Office and via Grant Funded Organisations.

HMRC has shared messages via Voluntary Sectors to support vulnerable customers. HMRC also has established ‘Extra Support Teams’ (EST) services which can be accessed by those customers who cannot, for whatever reason, interact with HMRC digitally or who need additional support and reassurance. HMRC provides additional assistance for customers who are deaf or hearing impaired, blind or partially sighted. Individuals also have the option of appointing someone else to deal with their transactions. We ensure that digital content meets government accessibility standards, and we can also provide it in alternative formats, including hard copy, on request. Formats available include: braille, audio, large print.

People who use different languages (Including Welsh Language and British Sign Language)

Impact on customers

For Child Benefit and tax credits, we are engaged with HMRC’s Welsh Language Unit and they are sighted where changes are required to letters and forms.

Proposed mitigation

Letters have been translated into Welsh for customers with Welsh addresses. A translation service is also available for customers who need the information in other languages.

Opportunities to promote equalities

We have considered opportunities to promote equalities and good relations between people in each of the protected characteristic groups and those outside of that group.

HMRC will ensure that any new operational ‘touch points’ have no negative impacts on any of the equality groups listed.

A full equality impact assessment is not recommended.