Policy paper

Factsheet 5: social security co-ordination

Updated 21 December 2018

What does the Bill do?

The government introduced the Immigration and Social Security Co-ordination (EU Withdrawal) Bill in the House of Commons on 20 December.

The Bill contains a power which enables the government (and/or, where appropriate, a devolved authority) to amend the retained social security coordination regime and deliver policy changes post Brexit.

What will the government use these powers to do?

It is important that we maintain consistency between the future immigration system and the availability of benefit support for EEA nationals entering the country. That is why we are bringing forward social security powers within the Immigration and Social Security Co-ordination (EU Withdrawal) Bill, to enable the UK to respond to its withdrawal from the EU by making changes to social security arrangements.

The power will enable the government (and/or, where appropriate, a devolved authority) to make suitable legislative provision for a range of post Brexit day scenarios that may arise. In response to the outcome of negotiations with the EU, the power may need to be exercised to implement policy changes to the retained social security co-ordination rules. These rules cover a wide range of issues and, in developing a framework for future social security coordination policy, the government may wish to consider:

• what access EU nationals will have in the future to certain UK benefits and pensions;
• the extent to which UK nationals can export certain benefits and pensions; and
• the administration and rules which govern entitlement and obligations when people live and work in more than one country.

This power will provide the government (and/or, where appropriate, a devolved authority) with the ability to deliver a range of policy options from Brexit day in any or all of these areas.

To ensure the use of the power is subject to full parliamentary scrutiny, regulations issued pursuant to this power will be subject to the affirmative procedure, meaning they will only be made with the approval of both Houses of Parliament.

Background

The EU Social Security Co-ordination Regulations (“SSC Regulations”) co-ordinate access to social security for individuals moving between EEA states (and Switzerland). The SSC Regulations deal with certain social security benefits that cover specific social risks such as unemployment, sickness or old age and cover UK contributory benefits as well as some non-contributory benefits.

The SSC Regulations apply to EEA and UK nationals in the UK and in the EEA (respectively) and to some third country nationals. The SSC Regulations determine which Member State’s social security legislation applies: the rules ensure an individual is only subject to one EEA Member State’s legislation at any one time, determine where contributions are due and which state is responsible for payment of certain types of benefit. The SSC Regulations provide for equal treatment of those in scope and for Member States to take into account periods of work, insurance or residence in another Member State when determining entitlement to benefit, which is known as “aggregation”. The SSC Regulations also enable individuals, in certain circumstances, to receive certain benefits from the UK irrespective of where they reside in the EEA (i.e. UK and EEA nationals can export benefits from the UK).

The SSC Regulations are saved into UK domestic law by the EU (Withdrawal) Act 2018 and this Bill takes a power which allows an appropriate authority to modify these retained SSC Regulations (and to make necessary consequential modifications to primary legislation and other retained EU law). An “appropriate authority” is defined as the Secretary of State or the Treasury, a devolved authority, or a Minister of the Crown acting jointly with a devolved authority.