Oral Answers to Questions

Philip Hollobone Excerpts

Monday 28th November 2011 Commons Chamber

[Steve Webb]

As the hon. Gentleman knows, it was the policy of the previous Government to link the age of eligibility for the winter fuel payment to the women’s state pension age. As that increases, the number of pensioners within its scope will fall.

[Mr Philip Hollobone (Kettering) (Con)]

20. What estimate he has made of the potential cost to the public purse of the removal of the habitual residency test.

[The Minister of State, Department for Work and Pensions (Chris Grayling)]

The initial estimates shared with the European Commission showed that the additional annual costs of awarding benefits to economically inactive EU nationals may be as much as £2.5 billion.

[Mr Hollobone]

Will the Minister confirm that this matter is a red line for Her Majesty’s Government which the European Commission shall not be allowed to cross? Will he undertake to lead a coalition of EU countries against these Commission proposals to interfere in the domestic business of quite a few member states in an area where the Commission should not be going?

[Chris Grayling]

I very much agree with my hon. Friend. We have had a number of robust discussions with the European Commission about this matter, and I can confirm to the House that we are formally rejecting in the strongest possible manner the Commission’s reasoned opinion against the right to reside condition of the habitual residency test. I am in regular discussions with my counterparts in other European countries, many of whom share the same concern. I regard this as a battle that I do not intend us to lose.