Benefit Entitlement (Restriction) Bill Debate

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Department: Department for Work and Pensions

Benefit Entitlement (Restriction) Bill

Christopher Chope Excerpts
Friday 17th January 2014

(10 years, 3 months ago)

Commons Chamber
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Christopher Chope Portrait Mr Christopher Chope (Christchurch) (Con)
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I beg to move, That the Bill be now Read a Second time.

It is a great privilege to serve under your chairmanship for the first time on a Friday, Madam Deputy Speaker.

This is one of a series of Bills presented, and for every week that has passed since it was first printed, it has become more relevant. There is tremendous public concern about this matter. The Bill would make

“provision to restrict the entitlement of non-UK citizens from the European Union and the European Economic Area to taxpayer-funded benefits.”

Last week, the front page of The Sunday Times carried a big headline reading, “Ban migrant welfare for two years”. Those were the words of the Secretary of State for Work and Pensions, who was quoted in the article as saying:

“Britain should be able to say to a migrant: ‘Demonstrate that you are committed to the country, that you are a resident and that you are here for a period of time and you are generally taking work and that you are contributing… At that particular point…it could be a year, it could be two years, after that, then we will consider you a resident of the UK’”.

Unfortunately, what my right hon. Friend says does not accord with EU law, so it was no surprise to read the brief on my Bill produced by the policy research unit, which referred to the quote from the Secretary of State, but then said:

“However, this is not Government policy. Sources close to Mr Duncan Smith stressed he was expressing an aspiration for the future, rather than spelling out a policy.”

That is the problem. Senior politicians, whether it be the Prime Minister, the Home Secretary, the Secretary of State for Work and Pensions or even the Deputy Prime Minister, can beat their chests and say, “The present state of affairs, with EU migrants coming here and sponging off our taxpayer-funded benefits system, is unacceptable”, but when one looks at the detail, one sees that despite their huffing and puffing, they cannot do anything about it, except perhaps for the first three months that somebody is here, which is no big deal. Once someone from another EU country has been here for more than three months, they effectively have as much access to our benefits system as you or me, Madam Deputy Speaker.

Edward Leigh Portrait Sir Edward Leigh (Gainsborough) (Con)
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Apparently, one reason we cannot do much about it, legally, is that we have a universal system, rather than a contributory system. The Bulgarian Prime Minister says that our Prime Minister is being nasty, but he is not. It is actually much more difficult to get benefits in a country such as Germany, so we are just being sensible, and if the only way we can deal with this problem is to move to a contributory system, perhaps we should. There is a desire among many countries, particularly Germany, Britain and other developed countries, to try to solve this problem. It is not about being nasty; it is about being sensible.

Christopher Chope Portrait Mr Chope
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I certainly agree that it is about being sensible, but I am not sure the solution lies in trying to change our benefits system. Surely, we, as a sovereign country, should be able to decide what benefits system we want for our own people and should not have to try to tailor it so that it cannot be abused under EU rules.

The bigger problem was referred to by Dominic Lawson also in an article in last week’s edition of The Sunday Times. He wrote that

“although the great majority of east European migrants are entrepreneurially seeking the much higher wages available in the richer nations, a proportion will be welfare tourists.”

He then referred to the

“point made many years ago by Milton Friedman, who believed in open borders: he asserted that you can have a generous welfare state or open borders, but not both…There is no doubt that free and open immigration is the right policy in a libertarian state, but in a welfare state, it is a different story; the supply of immigrants will become infinite.”

Indeed, that is the concern of people in this country—that the supply of immigrants is becoming infinite. We look in the Government statistics for the numbers, but again we find that they fudge the figures and do not even collect the raw material.

David Nuttall Portrait Mr David Nuttall (Bury North) (Con)
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Does my hon. Friend think that the number of migrants coming into the country and the consequent increase in the supply of labour has had an effect on the cost of labour, resulting in the necessity of the introduction of things such as the minimum wage?

Christopher Chope Portrait Mr Chope
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As my hon. Friend knows, I have never been an enthusiast for the minimum wage. Indeed, further down today’s Order Paper is my Employment Opportunities Bill, which would enable people to opt out of it. I am glad to see the Front-Bench spokesman agreeing with that.

Guy Opperman Portrait Guy Opperman (Hexham) (Con)
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In opposition to my hon. Friend’s comment, I am a very strong supporter of the minimum wage, and I believe that it is a progressive thing to trickle down the effects of the economic turnaround. There is ample evidence from a university of Essex study and various other studies that an increase in the minimum wage does not have any impact on job creation.

Christopher Chope Portrait Mr Chope
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I am sorry to disagree with my hon. Friend, but as soon as he resorts to the expression “progressive” and subsequently refers to the university of Essex, he has lost me. I think that the level of wages should be set in a private arrangement between the employer and the employee, and that it is not for the Government to intervene. We hear all the current talk about whether the minimum wage should be increased, but it is open to anyone currently on the minimum wage to go to their employer and say, “I would like to be paid more”, while it is open to the employer to pay their workers more. The fact that they are not being paid more suggests to me that the labour market is such that if they were paid more it would result in either them or their colleagues being put out of work.

The whole concept of a national minimum wage ignores the fact that we have different labour markets in different parts of the country. What might be a reasonable wage in London might be a totally unrealistic and unaffordable wage in some of the more remote parts of the country. I do not know what my hon. Friend thinks the position is in Hexham, but if the national minimum wage is designed to ensure that people in London and in Hexham are treated equally well, it is likely to have the result of reducing the employment opportunities in his constituency.

Guy Opperman Portrait Guy Opperman
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I will pass on my hon. Friend’s apologies to the university of Essex. The harsh reality is that there is ample evidence from a variety of sources, including from other universities—[Interruption.] They are not their own sources; they are independent. It has been shown that the minimum wage does not impact on jobs. My hon. Friend challenged me specifically on the north-east. I represent an area that has one of the highest levels of social deprivation and there is still significant unemployment there to this day. It is coming down, but it is still significant. A rise in the minimum wage would be a fantastically good thing—for the north-east and for employers. I suggest that it would produce greater loyalty, greater productivity and greater enthusiasm in the work force. That is evidenced by companies, whether they be big ones such as Barclays or Aquila Way in Gateshead—a housing association that provides good support for the living wage.

Christopher Chope Portrait Mr Chope
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Perhaps we will get a chance to discuss the Employment Opportunities Bill later. As the name suggests, it gives employment opportunities to people who would not otherwise have them. I hope that my hon. Friend has looked at the Bill. To assert, as he has, that the minimum wage cannot have any impact on jobs is to ignore the level at which the minimum wage is set. That is why the Low Pay Commission was set up to look at the level and make recommendations on the minimum wage. I know that you, Madam Deputy Speaker, will be concerned if we start discussing the Employment Opportunities Bill in detail at this stage—

Eleanor Laing Portrait Madam Deputy Speaker (Mrs Eleanor Laing)
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Order. The hon. Gentleman is accustomed to making long speeches in this Chamber on a Friday. I am listening very carefully to the content of his speech and to the information he provides to make sure that what he says is entirely related to the Benefit Entitlement (Restriction) Bill. I would be surprised to discover that the hon. Gentleman wished to talk out his own Bill, so I am sure that he will stick very strictly to the matter in hand.

Christopher Chope Portrait Mr Chope
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You know as well as anyone, Madam Deputy Speaker, that, ultimately, each Member of Parliament has to be held accountable for his own actions. If I am still speaking at 2.30, I will obviously not expect this Bill to get its Second Reading.

Eleanor Laing Portrait Madam Deputy Speaker
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I will be very surprised if the hon. Gentleman is still speaking and in order at 2.30.

Christopher Chope Portrait Mr Chope
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Apart from anything else, Madam Deputy Speaker, I do not want to exclude my hon. Friends from speaking in support of the Bill.

Julian Lewis Portrait Dr Julian Lewis (New Forest East) (Con)
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To help my hon. Friend seamlessly to slip back into the mainstream of his present Bill, as opposed to commenting on his other Bill further down the Order Paper, will he explain what could have possessed the Government, if they decided that they wished to deter benefit tourism, to impose a non-claimability period of just 12 or 13 weeks rather than an effectively longer period? If they did not want to impose an effectively long period, why put in any period at all—other than for some sort of public relations purpose?

Christopher Chope Portrait Mr Chope
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My hon. Friend makes a good point about public relations; the Government have to be seen to be doing something, but they are constrained by the current state of European Union law, which will prevent them from being able to take any action against people after they have been in this country for more than three months. That is why the Government are making a great virtue of saying, “We are going to get really tough on people in the first three months they are here.” However, they are not emphasising that once those people have been here for three months the world is their oyster and they have free access to all our taxpayer-funded benefits.

David Nuttall Portrait Mr Nuttall
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Is my hon. Friend aware of any change in EU regulations that has prevented the three-month rule from existing until now? If he is not aware of any such change, does he share my concern that that rule has not always been implemented in the UK?

Christopher Chope Portrait Mr Chope
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As I shall go on to discuss, the problem is that EU law in this area is evolving and changing. That is largely being done through regulation, but it is also occurring through decisions taken by the unelected judges in the European Court of Justice in Luxembourg. They are, in effect, giving an interpretation of what was originally a free movement directive—everybody would have gone along with that, because one core element in the European Economic Community was that people should be able to go from one country to another and take up employment there. Following the successive treaties, directives and regulations, the interpretation now is of people having a right to go to claim benefits in any country in the European Union once they have been there for more than three months.

Edward Leigh Portrait Sir Edward Leigh
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We are told that this proposal is against European law, but clearly the law is evolving. In any event, people cannot claim benefits in a place such as Germany unless they have been there for a considerable time. So why do the Government indulge in the politics of the pre-emptive cringe, kowtowing before what the European Commission might say in the future? Why do we not just say, “You cannot get a benefit for 12 months” and see whether it takes us to court? We could argue about it for years, so I do not know why we do not just stand firm on this.

Christopher Chope Portrait Mr Chope
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My hon. Friend makes a good point. Indeed, he will see that clauses 2, 3 and 4 of the Bill state:

“Notwithstanding…the European Communities Act 1972”.

In other words, the Bill would ensure that we were able to decide these things for ourselves, as a sovereign legislature, and override European Union law. My hon. Friend’s point was, in a sense, echoed by the Secretary of State for Work and Pensions in an article in The Sunday Times to which I referred earlier. It states that he

“added that reforming benefits was part of a wider move towards no longer automatically accepting rulings from the European Commission and courts.”

He welcomed the comments by Lord Judge, the former lord chief justice, that ‘we shouldn’t always assume straight away that anything that comes legally out of Europe we have to impose’ and said he was optimistic that there was the ‘beginning of a twitch with the Supreme Court”.

My Bill is designed to go a bit further than a twitch; it is designed to ensure that we change our law. If we suffer infraction proceedings in the European Court of Justice, one thing is certain: they are unlikely to reach a conclusion until you and I are in our dotage, Madam Deputy Speaker. The ECJ involves a very long-winded process, and because it is so long-winded, the French Government, for example, will deliberately defy EU law in the knowledge that any sanctions arising from their defiance will not be apparent until many, many years later.

Jacob Rees-Mogg Portrait Jacob Rees-Mogg (North East Somerset) (Con)
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What does my hon. Friend think would be the practicality of any sanction on a country that is a net contributor to the EU budget?

Christopher Chope Portrait Mr Chope
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I am not going to answer that question; as with so many of my hon. Friend’s interventions, he perhaps already knows the answer, in which case he will be able to adumbrate it if he contributes to the debate. The point he makes is that we are net contributors, and if the European Union thinks that we can be kicked around and we will do whatever Mrs Reding or anybody else wants us to do, it is about time they started concentrating their minds on the fact that British taxpayers pay a lot of their salaries.

Again, if fines or penalties are imposed, that creates distortions. I suppose we could set them off against our contributions to the European Union.

I became particularly interested in this subject early last year, because I thought that it was absolutely fundamental that our country can distinguish between our nationals and nationals of other European Union countries in dealing with benefit issues. A few parliamentary questions have been asked on the subject. In answer to a question asked on 14 January 2013, the then Minister of State at the Department for Work and Pensions, my hon. Friend the Member for Fareham (Mr Hoban), said:

“The UK’s benefit payment systems do not currently record details of a claimant’s nationality. Looking forward, the Government is considering ways of recording nationality and immigration status of migrants who make a claim to universal credit”.—[Official Report, 14 January 2013; Vol. 556, c. 466W.]

I hope that the Minister of State, Department for Work and Pensions, the hon. Member for Hemel Hempstead (Mike Penning), who is on the Front Bench today, will tell us what has happened in the subsequent year regarding recording nationality and immigration status, because if we do not even have basic information about the nationality of migrants or people claiming benefit, and have no means of finding that out, how can we ever have the tight controls that the Government keep talking about to ensure that migrants from other EU countries do not abuse our benefit system in their first three months here, or ensure that they are genuinely seeking work?

The first provision in the Bill would ensure that national insurance numbers were issued only after the applicant had declared their nationality, and would not make it possible for anybody to claim benefit without declaring their nationality. In that way, we could at least gather some statistics about the use of our benefit system by nationals from other countries, which we certainly cannot do at the moment.

There is a big problem and I fear that it suits the Government not to give the people the full facts on this issue. They have statistics measuring net migration, for the purposes of meeting a commitment they made at the last general election to reduce net migration to the tens of thousands. However, there are different ways in which net migration is calculated. The labour force survey estimates that the number of A2 nationals living in the UK has increased by 25,000 a year in the six years between 2007 and 2013. However, the Government’s figures, which are based on passenger surveys carried out at ports and airports, suggest that there were fewer than 10,000 new people from Bulgaria and Romania a year. As we do not have a way of measuring people’s nationality when it comes to national insurance numbers or benefit claimants, the Government have to rely on passenger surveys to find out how many people have come from Romania or Bulgaria. The Office for National Statistics has been critical of the cavalier way in which the UK collects those statistics.

Clause 1 of my Bill would make it much easier for us to have a proper public debate on these issues, based on the facts rather than on conjecture. I hope that the Minister agrees that is a good idea.

Clause 2 of my Bill says:

“Notwithstanding the provisions of the European Communities Act 1972, no non-UK citizen who is a national of a member country of the European Union or the European Economic Area shall be eligible for housing benefit or council tax benefit in England and Wales unless the benefit entitlement arises by reason of having the status of a spouse or dependant of a UK citizen.”

In other words, the clause would close down access to housing and council tax benefit for people who have come to this country to work or to play.

Philip Davies Portrait Philip Davies (Shipley) (Con)
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As my hon. Friend knows, I fully support his Bill and the intention behind it. Does he think that child benefit falls under the clause on dependants, because one thing that irritates my constituents is when people come over from other countries in the EU and claim child benefit for children who have never left their country of origin and seemingly are entitled to it? I think that that is an absolute outrage, and I am certain that most of my constituents think so too.

Christopher Chope Portrait Mr Chope
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It is an outrage, but, unfortunately, it is in accordance with European Union law and case law. The other day, the Deputy Prime Minister, ever the populist or attempted populist, said in relation to child benefits that there was “complete unity” in the coalition—that is probably the first inaccuracy—on tightening up benefit rules for European migrants. He then said that he did not quite understand

“why it is possible under the current rules for someone to claim child benefit for children who aren't even in this country.”

He might not understand that, but if he had looked at the legal advice given to the Government and published on their own website, he would find the answer set out for him. The legal annexe on the issue of free movement cites a number of European Court of Justice cases. Specifically, in the case of Martinez-Sala, case number 85/96, it says that it is possible to require the payment of a “child-raising allowance” to a person for children outside the country in which they reside. That is why, despite the huffing and puffing, we cannot do anything about it.

Philip Davies Portrait Philip Davies
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I agree with that, and that is why I want to get out of the wretched European Union at the first opportunity. I just wondered whether my hon. Friend’s Bill would deal with that issue and stop that payment of child benefit. Under the clause on dependants, he talks about housing benefit and council tax benefit, but does not specifically mention child benefit. I am just worried that he is going a bit soft. He is not going far enough with his Bill.

Christopher Chope Portrait Mr Chope
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Clause 4 of my Bill says:

“Notwithstanding the provisions of the European Communities Act 1972, no UK taxpayer-funded benefit”—

which is obviously what child benefit is—

“shall be paid to a citizen of another country in membership of the European Union…unless the entitlement to that benefit arises from an insurance-based contribution which the claimant has made.”

In that case, such a person would not be eligible for child benefit. Clause 3 would also have a bearing on that. It says that

“no UK taxpayer-funded benefit shall be paid to a citizen of another country…at a rate which exceeds in cash terms the equivalent benefit which would be payable to such a person if that person were resident in the country of his nationality.”

In other words, a Pole working here would be able to claim child benefit in respect of his children in Poland at the rate prevailing under Polish national law, rather than at the rate prevailing under UK law.

Julian Lewis Portrait Dr Julian Lewis
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Given that we may have to wait a year or two at least before we have the opportunity to decide whether we stay in the European Union, does my hon. Friend think that the suggestion made in the letter organised by my hon. Friend the Member for Harwich and North Essex (Mr Jenkin) about this Parliament being given the right to overrule decrees from the European Union that we regard to be against the national interest might be one way of making progress, even if his Bill, for all its merits, does not succeed in the meantime?

Christopher Chope Portrait Mr Chope
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I agree with my hon. Friend. I signed that letter, as far as I know. I certainly support its content, and I am sure that if it were suggested that I had signed the letter when I had not, one of the Whips would have come to tell me about it.

Edward Leigh Portrait Sir Edward Leigh
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It was suggested that our proposal that Parliament should have a right to veto European legislation is contrary to European law, but it is interesting that a member of the German Bundestag said on the “Today” programme that, in his opinion, such a veto is not contrary to European law because the German supreme court can apparently strike down legislation that is contrary to the German constitution. So the proposal contained in the letter from our hon. Friend the Member for Harwich and North Essex (Mr Jenkin) is eminently sensible, and we could do it. We should at least include the proposal in our manifesto.

Christopher Chope Portrait Mr Chope
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I agree with my hon. Friend. If the Government were more open with the people about the fact that they have no scope under existing law to do anything about the people’s concerns on other European Union citizens’ access to our taxpayer-funded benefits, that would help the Government to make the case for a completely fresh arrangement with the European Union. At the moment, we are deluding ourselves and the people in thinking that we can address those very serious concerns.

When my hon. Friends and I launched our Bills after the Queen’s Speech, the noble Lord Ashcroft commissioned a survey of the popularity of the proposed measures. I remind my hon. Friend the Minister that the proposal in clause 1 to record the nationality of everyone with a national insurance number or on benefits received the support of 71% of the sample, with only 8% of people against the proposal and 21% undecided. On the proposal to restrict welfare benefits to UK citizens only, which is effectively the rest of the Bill, 74% were in favour, with another 13% undecided.

I hope the Minister will realise that he should not be in any doubt, if there is any doubt, about the public demand for the measure. At the moment, the public are demanding the measure and the Government are not saying, “No we can’t do it because we are tied by European Union law. We therefore have to change the European Union law or get out of the European Union.” The Government are pretending that they have freedom and flexibility to act under European Union law when they do not. I suppose no one really wants to admit impotence, least of all a Government, but that is their situation in the face of the evolving European Union law in this field.

I will not address in great detail the way in which European Union law has evolved, but I hope that my hon. Friend the Minister will answer some of the questions I asked in the debate on 5 June 2013 that were never answered. I asked:

“Does the Minister agree with the basic proposition that if someone from another European country decides to move to the United Kingdom, they should not expect to receive taxpayer-funded assistance for their housing, health care, education or living expenses?”—[Official Report, 5 June 2013; Vol. 563, c. 256WH.]

If the answer is that the Minister does not agree, let us have it on the record. It is no good ducking these questions. If a non-British EU national cannot afford to live in the United Kingdom without recourse to taxpayer-funded services, should not that person return to his own EU country rather than relying on UK taxpayer handouts? If the Government do not agree with that they should say so and then we can have a proper debate. I am sure we will then get even more letters than we do at the moment from UK Independence party supporters saying how out of the touch the Government are with the feelings of the people—but that is only an aside, Madam Deputy Speaker.

I hope that we will get some answers to those questions and will move away from the very carefully worded statements that on close analysis mean absolutely nothing, such as, “People will not be allowed to have benefits subject to their European Union rights.” Since their European Union rights give them access to almost all benefits, I submit that such a statement is without any value.

In essence, what happened was that we joined the European Economic Community, the fundamentals of which include freedom of movement, but over a period of time freedom of movement has been extended by treaty, directive, regulation and case law into areas that nobody could ever have contemplated. None of those extensions was discussed with the British people and hardly any of them were discussed with our Parliament.

The legal annexe, which is a scholarly document, spells out in frightening detail the extent to which the European Court of Justice has extended the scope of the various directives. For example, paragraph 47 states:

“In the case of Metock”

in 2008, the European Court of Justice made it clear that the free movement directive

“should not be interpreted restrictively and that its objectives must not be interpreted so as to deprive them of their effectiveness. The particular impact of the case in terms of the UK’s competence was its clear assertion that a member state should not be imposing additional requirements on those seeking to rely on free movement rights in addition to those set out in the existing legislation”.

The European Court of Justice is extending the law because it has direct application and because of the so-called shares of competence, which effectively mean that if the European Union legislates in this area it is not open to the UK Parliament or the UK Government to legislate in conflict with that.

Through the process of treating people from other countries in Europe who come to the United Kingdom as equals, we are moving inexorably towards the ever-closer union whereby people would not be citizens of an individual country but would just be citizens of the European Union. That is the agenda. When one sees the European Court of Justice’s interpretation of the various expressions in the legislation, one can see exactly what the threats on the horizon are and that they go beyond those that we have already witnessed.

Philip Davies Portrait Philip Davies
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Will my hon. Friend expand on that? Many people are confused about whether the EU rules allow free movement of people or free movement of labour. If it is free movement of labour, does he agree that if somebody from another EU country does not have a job that should give the Government every entitlement to send that person back to their country rather than allowing them to stay in the UK accessing UK benefits?

Christopher Chope Portrait Mr Chope
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The problem is that the definition of “worker” is being extended. A significant case is pending in the European Court of Justice—that of Saint Prix v. the Secretary of State for Work and Pensions—and a preliminary reference concerns

“whether a person who gives up work… can remain a worker under Article 45.”

One is bound to sympathise with the Secretary of State, because the language—well, normal language just does not apply. It might be because the European Court of Justice works solely in French and delivers all its judgments in French. None the less, I think that it is extending the language somewhat to say that someone who gives up work can remain a worker. That is linked to the current provision, which states that a person cannot access means-tested benefits if they are going to be a burden on the social assistance system, but that system is being defined so narrowly that almost everyone is entitled to means-tested benefits.

I could give further examples, but I will draw my remarks to a close. Even if the Bill does not become law in this Session of Parliament, I hope that it will form a core part of the Conservative party manifesto at the next general election, because I am sure that its contents really accord with the wishes of the British people, as exemplified in any number of opinion polls.

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Philip Davies Portrait Philip Davies
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I am grateful to the hon. Gentleman. He is leading with his chin on these matters. He is getting out increasingly bigger spades with which to dig himself into a hole. He has now suggested that nobody from the EU comes here to claim benefits, but that everybody who comes here from outside the EU does so to claim benefits and that we need to restrict access to benefits for them. If he is not saying that, presumably his argument is that we should allow a free-for-all of benefits for anyone from anywhere around the world. That is certainly not an argument that I support, and I do not think that the majority of my constituents would support it.

Christopher Chope Portrait Mr Chope
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Does my hon. Friend agree that the question is not just whether people arrive here with the intention of claiming benefits, but whether, having been here for a bit of time and seen our generous benefits system, people decide not to seek employment but to claim benefits? For example, I had a constituency case in which a person came here from another European country and, after a year, gave up work and went on housing benefit, saying, “There’s no need for me to work.”

Philip Davies Portrait Philip Davies
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My hon. Friend is absolutely right. I suspect that many Members have had similar cases. A man from Poland came into my constituency surgery who had come here to work, as he was entitled to do. He had heard on the grapevine in his local community that he was entitled to claim child benefit for his four children who were still residing back home in Poland. He thought that seemed like a good wheeze and that, if all his colleagues were doing it, he might as well do it himself. Of course, he found that, bizarrely, he was entitled to child benefit for his four children, who had never in their lives set foot outside Poland and who were living there with his wife, their mother. There is absolutely no justification for anybody from another country in the EU claiming child benefit for children who have not even had the decency to come over to this country and who are still residing in their home country.

The reason I support the Bill so strongly is that I believe we should treat all non-UK citizens the same, irrespective of where they are from. To me, that means restricting their access to benefits in this country. That is a simple proposition that I think most people in this country would support. We cannot afford to carry on handing out benefits willy-nilly to people who choose to come here from all over the EU—it is not sustainable for the welfare state or for our citizens. It will collapse the welfare state for UK citizens if we keep having to add to the burden.

--- Later in debate ---
Stephen Timms Portrait Stephen Timms (East Ham) (Lab)
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The Bill is, of course, directly incompatible with our membership of the European Union. [Hon. Members: “Hear, hear!”] The hon. Member for Christchurch (Mr Chope) proposes that European Union citizens who are working legally in the UK should not be entitled, for example, to help with their housing costs, which UK citizens are entitled to. That direct discrimination against EU citizens is clearly incompatible with our obligations as a member state—I noted the enthusiasm for that proposition on the Conservative Benches.

One puzzling aspect of the Bill is that under its terms, contrary to what the hon. Member for Shipley (Philip Davies) said, people from outside Europe would continue to receive the help that citizens of the European Union would be prevented from receiving. He said that he wanted anyone who is not a UK citizen to be denied access to benefits, and I think he is under the impression that that is what the Bill would do. In fact, it would have that effect only on EU citizens, not on citizens from countries elsewhere in the world.

Two million citizens of other European countries are living in the UK. Many will have lived in the UK for a long time, and some will be in receipt of housing benefit or council tax benefit, alongside other UK residents whose circumstances are similar. Under clause 2 they would suddenly stop receiving that help. Some will be in receipt of other non-contributory benefits such as pension credit, so we are talking about some pensioners being affected, perhaps after a lifetime of working in the UK. Some are in receipt of child benefit, which is not insurance based, or tax credits, but under clause 4 they would suddenly lose them. European Union citizens would suddenly be disadvantaged not only relative to UK citizens, but also relative to citizens of non-European countries. The hon. Gentleman has told the House that that is not his intention, but that is the effect of the Bill he supports.

Christopher Chope Portrait Mr Chope
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If, as the right hon. Gentleman suggested, a citizen of another country has been in the United Kingdom for a lifetime of work, they would be able to qualify for British nationality if they have been resident here for more than five years.

Stephen Timms Portrait Stephen Timms
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They may be entitled to do that, but many do not. Is it not the case that London has one of the largest French populations in the world? I think only two or three cities in France have more French citizens living in them than London does. The hon. Gentleman may feel that they should all apply for UK citizenship, but that seems to me an unreasonable demand.

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Mike Penning Portrait The Minister of State, Department for Work and Pensions (Mike Penning)
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It is a privilege to serve in the House this afternoon as the duty Minister at the Department for Work and Pensions. I am sure that hon. Members on both sides of the House will not be surprised to hear that I and the Government support much of what has been said today. I was accused earlier of probably having a carefully worded statement to read out which had been prepared after hours of works by civil servants. Anybody who knows me since I have been a Minister knows that I have never read out anything carefully worded in my life, which is why I get in trouble so much—but there we are.

As the shadow Minister and several colleagues alluded to, I am trapped, not so much, interestingly, by our membership of the EU, but by the interpretation of that membership by the courts over the years, which has extended the powers of unelected bodies over this country and this House. I am also slightly restricted in that, if I, as a Minister of the Crown, have legal advice that the Bill would be a breach for which I could be infracted, I am required, as the shadow Minister will know, being a former Minister, not to get the Government into that position. The ministerial code prevents me from doing that.

The Government will, therefore, be opposing the Bill today. I shall explain why and what we are doing. As announced already, we are doing as much as we can, within the established framework, to ensure that people who come to this country from the EU and the EEA come here to work from the outset and that they are restricted from getting benefits for the first three months.

I heard during today’s debate that that is not much of a restriction. I would have thought that people from different countries being in this country for 12 weeks with no income whatever would provide quite a restriction and would mean bearing a lot of financial hardship. Getting here and then having to live here for three months without benefits would be quite restrictive. I accept that there might be sponsorship for some, but three months is as far as we could go, although we continue to look at other measures while negotiations with our European partners are taking place.

Christopher Chope Portrait Mr Chope
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When someone asks for benefits, how are the Government going to find out whether that person has been in the country for less than three months? How will the Government know even that the person is a foreign national?

Mike Penning Portrait Mike Penning
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I was coming on to that, as it was one of the questions I was asked. Indeed, it is a question that I have asked as a Minister in the Department. Although employment benefits are not exactly my—

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Christopher Chope Portrait Mr Chope
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That is both a surprise and a disappointment, although I am grateful to the Minister for saying that he agrees with a lot of the ideas behind the Bill. He says, in effect, that his hands are tied, he cannot do anything about it and we need to renegotiate these issues. My concern is that there does not seem to be any evidence that we will be able to command a majority in the European Union to renegotiate along the lines that we seek. When I asked the Prime Minister whether this issue would be one on which we would be renegotiating, my question was passed to the Foreign Office and it replied by setting out priorities for renegotiation that did not include anything to do with the subject matter of the Bill. I hope that my hon. Friend the Minister has therefore been announcing new Government policy today in saying that this subject will be right at the forefront of our renegotiation of our terms of engagement with the European Union. If that is so, I have not been putting forward this Bill and arguing in vain.

In closing, I thank my hon. Friends the Members for Bury North (Mr Nuttall) and for Shipley (Philip Davies) for their support and encouragement on the Bill. I am also grateful to my nearby colleague in Hampshire, my hon. Friend the Member for New Forest East (Dr Lewis). Their presence and involvement shows that this subject will not go away and that a lot of people feel strongly about it. I asked the Minister how he will be able to find out whether somebody applying for jobseeker’s allowance has been in this country for less than three months, and whether they come from outside the United Kingdom and are a national of another EU country. In reply, he said that he would not be able to sort that out with a requirement as to nationality until universal credit came in, but on any view that is some many months or years away. Meanwhile, the Prime Minister, the Home Secretary and the Secretary of State for Work and Pensions are saying, “We are going to get tough, with effect from 1 January.” That is because people from Romania and Bulgaria were able to come here from 1 January and we were assured that we would be rigorous in ensuring that none of them would be able to apply for benefits within three months of their arrival. How are we going to know when people arrived and what nationality they are unless we have some means of asking the questions?

The Minister’s failure to answer that simple question drives a coach and horses through this aspect of Government policy. It is a charade; we are giving people the impression that we have got control over this when we have no control over it whatsoever. If that was not apparent from what has been said already, the fact that the Government are being taken to the European Court on the issue even of the habitual residence test just shows that the European Union is working in the opposite direction from us. That is why I think I speak for most of my hon. Friends in saying that unless we can sort this out, we would be better off out of the European Union. That is why I think it would be useful, because of the ongoing European Union debate, to test the will of the House on this matter.

Question put, That the Bill be now read a Second time.