Correspondence with Ministers October 2006 to April 2007 - European Union Committee Contents


SOCIAL SECURITY SYSTEMS (5896/06, 9584/06)

Letter from the Chairman to James Plaskitt MP, Parliamentary Under-Secretary of State, Department for Work and Pensions

  Thank you for your letter dated 12 September 2006[156] which was considered by Sub-Committee G on 19 October.

  We are grateful to you for this helpful progress report. We note your particular concern over the child-raising provisions and that several other elements still need to be resolved in negotiations and look forward to a further report on any progress made in negotiation on those issues.

  We would also be glad to know whether the Government considers that the arrangements proposed for self-employed persons are soundly-based and likely to work fairly and effectively in practice.

  We understand that this Proposal is on the Agenda for political agreement at the ESPHCA Council on 30 November/1 December. We will retain the document under scrutiny and would be grateful if you could ensure that we are given a full report on all the points indicated above in good time before Council decisions are needed.

20 October 2006

Letter from James Plaskitt MP to the Chairman

  My Explanatory Memorandum of 16 February 2006 and 30 March 2006 and my letter of September 2006 refer. I am now writing to provide a progress report on the negotiations to amend the Regulation that implements the European Social Security Coordination Regulations. I am sorry not to have written sooner.

OUTCOME OF DECEMBER EMPLOYMENT, SOCIAL POLICY, HEALTH AND CONSUMER AFFAIRS COUNCIL (EPSCO)

  The proposal to agree an implementing Regulation for the simplified coordination provisions is complex and will take some time to work through in the Council. Consequently the Member States have decided that the Council will reach a general approach on a chapter-by-chapter basis. This matches the successful approach already taken with the main coordinating Regulation. The June Council had agreed a general approach on Titles I and II. The December Council agreed a general approach on the articles relating to invalidity benefits, old age pensions and survivor's benefits.

  This is a provisional agreement, and the final text may be changed as a result of issues that arise in future discussions.

  Amongst the issues discussed were how to deal with period of voluntary insurance, which Member State a person should claim their benefit from, a requirement for Member States to provide information to benefit claimants about the impact of deferring a claim for benefit, and how claims will be investigated and awards speeded up.

  As I explained in my previous update in September, an important issue for the UK was a draft article relating to periods of child-raising (Article 44). It was based upon two judgments from the European Court of Justice (Elsen C-135/99 and Kauer C-28/00) which clarified the rights of ex-workers who receive child-raising protection for their pension from the Member State they worked in, but then move to live in another Member State where they cannot obtain such protection on the basis of residence. The Commission proposal did not actually cover ex-workers but sought instead to extend rights to people who have never worked, leaving workers to be covered by the case-law rather than a provision in the regulations. The UK felt that any article on this issue should incorporate the case-law itself into the coordinating provisions and not extend rights beyond those given by the Court. After much negotiation Member States agreed to an Article that reflected the case-law.

QUESTION RAISED ON THE SELF-EMPLOYED

  I would also like to refer to your letter of 20 October in which you asked a general question about the simplification of the coordinating rules—whether the Government felt that the arrangements proposed for self-employed persons are soundly-based and likely to work fairly and effectively in practice.

  The current EC Regulation 1408/71 affords self-employed migrant workers the same social security obligations and rights under the legislation of any Member State as the nationals of that state. In general terms, the provisions for self-employed people are identical to that of employed persons and are effective in practice. In this regard, all these provisions have been carried through to EC Regulation 883/04.

DISCUSSIONS UNDER THE GERMAN PRESIDENCY

  Under the German Presidency, the Council Working Group is discussing the provisions relating to sickness and maternity benefits, including equivalent benefits for paternity, benefits in respect of work accidents and occupational diseases, and death benefit.

  Sickness benefits include health care which is a sickness benefit "in kind". A concern has arisen for the UK relating to the read across between these coordinating Regulations and an expected proposal for EC legislation on health services.

  The Regulations set out the rules under which the home Member State will pay for a patient to go abroad for treatment ("the E112" route). Recent ECJ judgments have created a different set of rules for treatment abroad, this is the "Article 49" route (named after the relevant section of the Treaty). The expected proposal for health services legislation will incorporate this new case law, which would then leave us with two conflicting pieces of EC legislation covering the same thing. This would be confusing for patients and difficult to administer.

  The aim of the UK is to achieve consistency and coherence on the issue of patient mobility within the EU and the Government is currently considering how this problem can be resolved.

25 April 2007



156   Correspondence with Ministers, 40th Report of Session 2006-07, HL Paper 187, pp 554-555. Back


 
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