17 Coordination of Social security schemes
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16066/03
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| Draft Regulation amending Regulation (EEC) No. 1408/71 on the application of social security schemes to employed persons, self-employed persons and to members of their families moving within the Community
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| Legal base | Articles 42 and 308 EU; co-decision; unanimity
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| Department | Work and Pensions
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| Basis of consideration | Minister's letter of 20 May 2004
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| Previous Committee Report | HC 42-iii (2003-04), para 12 (17 December 2003)
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| To be discussed in Council | 1 June 2004
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| Committee's assessment | Politically important
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| Committee's decision | Cleared; see also decision reported on 17 December 2003
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Background
17.1 When people move to another Member State, they can (subject
to specified exceptions) take with them social security benefits
to which they are entitled in the Member State from which they
are moving. Provision for this was made in Regulations (EEC)
No. 1408/71 and 574/72. This document proposes amendments to
the Regulations to reflect changes in the social security legislation
of Member States and decisions of the European Court of Justice.
17.2 When we last considered the document in December,
there were some matters which required further negotiation between
Member States. One of these — the contents of Annex IIa
of Regulation 1408/71 — was of particular concern to the
Government. The Annex lists special contributory benefits which
cannot be exported when the people entitled to them move to another
Member State.
17.3 In the Commission's view, the effect of some
recent judgements of the European Court of Justice (ECJ) is that,
in the case of a disabled person, only a benefit paid solely because
of the beneficiary's "need for social interaction" may
be listed as exempt from export. On this basis, the Commission
considered that three UK Allowances — Disability Living
Allowance, Attendance Allowance and Carer's Allowance —
should be deleted from Annex IIa. It is the Government's policy,
however, that these benefits, which are funded by the taxpayer
and do not depend on contributions, should be available only to
people who are resident in the UK.[45]
Moreover, in the Government's view there is ECJ case law which
justifies the retention of the Allowances in the Annex.
The Minister's letter
17.4 The Parliamentary Under-Secretary of State at
the Department of Work and Pensions (Mr Chris Pond) tells us about
developments since we last considered the document. He encloses
with his letter :
- the text of four amendments
adopted by the European Parliament at its first reading of the
document in March;
- a report by the Presidency on the negotiations
in the Council's working group; and
- a revised text of the document.
17.5 The Minister tells us that, during the further
negotiations, the Commission maintained its view that the three
UK disability benefits, and the similar benefits of two other
Member States, should be removed from Annex IIa. But the Government
and the two other Member States remained of the view that other
ECJ case law does not justify the removal of the benefits. All
Member States' delegations have now agreed to retain these entries
in the Annex pending future ECJ jurisprudence which could clarify
the criteria for inclusion or exclusion of such benefits. The
Commission's view is unchanged and it has reserved the right to
present a proposal, if necessary, to revise the list.
17.6 The Minister tells us that the four amendments
proposed by the European Parliament are minor. They are acceptable
to the Commission and the Government.
17.7 In his comments on the revised text of the document,
the Minister says that most of the proposed amendments concern
other Member States. The Government is content with the revised
text and, in particular, with the retention of the UK disability
benefits in Annex IIa.
17.8 On 1 June, the Council is likely to be asked
to invite the Commission to set up a working group to consider
the coordination of benefits for people with disabilities. The
Minister says that the Government could support this proposal
but would need to make clear that its support did not mean that
the Government would depart from its view about the need to include
the UK Allowances in Annex IIa.
Conclusion
17.9 From time to time it is necessary to amend
the Community's social security Regulations to reflect changes
in Member States' legislation and recent judgements of the European
Court of Justice. That is the purpose of this document. It is
clear that a great deal of thought and effort has been devoted
to the work. It is also clear that the Irish Presidency has made
a major contribution by bringing the negotiations to a point at
which agreement between the Member States on the revised text
is now likely.
17.10 We are satisfied that the document is consistent
with the principle of subsidiarity and that it is proportionate.
We have no further questions to put to the Minister. We have
now completed our scrutiny of the document and, accordingly, we
clear it.
45 These Allowances can, however, be paid outside the
UK if the beneficiary leaves the country to receive medical treatment
or makes a visit abroad for up to 26 weeks. Back
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