Social Security Co-ordination (Revocation of Retained Direct EU Legislation and Related Amendments) (EU Exit) Regulations 2020

Baroness Sherlock Excerpts

Tuesday 8th December 2020 Grand Committee

[Baroness Sherlock (Lab) [V]]

My Lords, I thank the Minister for her explanation of these regulations. I am also grateful to her for giving me access to her officials, who have been a source of very helpful briefing throughout this process.

Ministers have explained previously that their intention was to revoke the provisions of the social security co-ordination regulations at the end of the transition period, the idea being to clear the decks for the implementation of the contents of a deal with the EU and/or with the EEA and Switzerland. I have repeatedly asked the Minister over the year to spell out what will happen to social security co-ordination after the transition period for those outside the scope of the withdrawal agreement.

Ministers have consistently declined to answer questions on the grounds that the Government aim to get a deal, and that if we can wait until then we will be told everything. We are now here, three weeks before the end of the transition period, debating regulations that terminate the current co-ordination provisions, and we still do not know what is to replace them because we still do not know if there will be a deal.

Can the Minister tell the Committee how, if there is a deal, its provisions will be enacted in law? Specifically, how will Parliament get to examine the content and implications of the deal? If there is no deal, anyone moving between the UK and the EU, including the EEA and Switzerland, will be in the same position as somebody currently moving between here any other country in the world, except of course that we have agreements with many other countries, and far more people move between the UK and the EU and the EEA than anywhere else. According to the House of Commons Library, last year there were some 3.7 million EU nationals living in the UK and the best part of a million UK nationals living elsewhere in the EU, excluding Ireland.

If we end up without a deal, what will the position be? It is good to have it clarified that the regulations save provisions relating to the aggregation and uprating of the state pension. So if there is no deal in place by the end of the transition period, there will at least be continued state pension aggregation and uprating in the EU and EEA states and Switzerland up to the end of the next financial year and potentially for a wee bit longer, if necessary, for ongoing negotiations.

The intention is presumably that, in the absence of an EU-wide agreement, the UK would seek to put in place reciprocal arrangements with individual European states instead. Just for the record, can the Minister confirm that in the absence of a deal with the EU, this means that if a British pensioner moves to France in January she will find that her state pension is uprated in April as though she had never left the UK? Will there be any reimbursement of healthcare charges for her, or indeed for anybody getting long-term exportable benefits? Will there be any healthcare coverage for someone making a short stay in an EU state from the UK after the transition period? What will happen to those affected by Covid, such as students who started their courses virtually, intending to move physically next term? What will be the impact on their entitlements?

The fact that nothing else is safe will leave people moving between the UK and the EU very exposed. The obvious exception is Ireland, with which we now have an agreement, and we are told that there is an intention to have a deal with Gibraltar. These regulations save the intended SSC regulations on social security between the Governments of the UK and Gibraltar. Can the Minister confirm—I apologise if she did this in her opening remarks—whether the extent of those savings is just on uprating and aggregation, like a state pension, as it is with the EU as whole, or whether it is broader for Gibraltar?

The other outstanding areas relate to things such as double payment or aggregation of national insurance contributions. I understand that, at the moment, if there is no deal, the rules that apply to any other country in the world that does not have a reciprocal agreement with the UK will also apply to those moving for work between the UK and the EU or EFTA or Switzerland. I presume they will pay NICs for 52 weeks and then be subject to the local regimes. Could the Minister confirm for the record that someone in that position would therefore end up being potentially liable to paying contributions in both countries, while being insured in the UK only?

Finally, the Explanatory Memorandum says that no impact assessment has been prepared for this instrument, but that, when negotiations are concluded,

“DWP intend to publish … an update to the social security co-ordination impact assessment published during the passage of the … Act.”

Can I ask the Minister why no impact assessment was prepared? How soon after negotiations are concluded will DWP update the impact assessment published during the passage of the Act? If there is a deal, can the Minister assure the Committee that we will see an impact assessment for any measures brought forward to implement the deal and an updated impact assessment for these measures before the provisions of any deal are implemented?

This entire process is highly unsatisfactory. We are three weeks from the end of the transition period and Parliament is being asked to approve regulations that remove the transitional provisions without any clarity as to what will replace them. That leaves uncertainty for anyone moving between the EU and the UK who is outside the scope of the withdrawal agreement. It leaves us, as parliamentarians, with no knowledge as to when, how or even if Parliament will get to scrutinise and debate what is coming next. I deeply regret that Parliament has been put in this position, but I look forward to hearing any further clarification the Minister is able to give.

[The Deputy Speaker (Lord Duncan of Springbank) (Con)]

My Lords, I apologise to the noble Baroness, Lady Ludford. We have been unable to connect with her because of various technical reasons, for which I apologise. I return to the noble Baroness, Lady Janke. I hope we can now speak with her.