Habitual Residence Test (Hansard, 14 June 1999)

§ Angela Eagle

We have now concluded the review of the habitual residence test and have identified a package of measures to produce a fairer and more efficient test. The test was introduced by the previous Government to tackle the perceived phenomenon of 'benefit tourism'. However, to date the majority of people adversely affected have been UK nationals.

It is right that our Social Security system should be safeguarded from abuse by people with little or no connection to the UK and we will continue to do this. Clearly though it is also important to ensure that income-related benefits are available to UK nationals and other nationals who have strong and legitimate links to this country.

We believe that the package will address these two concerns. We have accepted a recent judgment of the European Court of Justice which has made it clear that people returning to the UK from an EU member state and re-establishing their ties here should be treated as habitually resident immediately upon their return.

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However we believe it would be wrong to limit this important principle to people returning from a member state of the EU and have issued guidance to staff administering the test advising them to extend the effect of the judgment to people returning from any country overseas and re-establishing their ties here.

We also propose to legislate to add to the categories of people who are to be treated as habitually resident those people who are brought here from an area of civil unrest or who are deported to the UK. Otherwise, subject to any guidance which may be given by the House of Lords in Nessa v The Chief Adjudication Officer (1) The Secretary of State for Social Security (2), a decision on which is awaited, the habitual residence test will continue to apply to seek to prevent abuse by those who do not have the appropriate ties to this country.

We intend also to reduce the period when habitual residence inquiries are made from five years to two years and to introduce administrative improvements.

We will trial a standard proforma, with a view to national implementation, to facilitate a more consistent approach to information gathering and decision making on cases requiring habitual residence action. We will also monitor the effects of how the test now operates.

Taken together we believe these measures will result in fairer access to income-related benefits and will streamline the administrative process, while ensuring security against possible abuse of the benefits system by those with no real links to the UK.