The Department for Work and Pensions has confirmed an array of changes to the social security system as a result of Brexit.
Under the new withdrawal agreement reached between the UK and EU after last-minute negotiations, Brexit has finally happened.
From January 1, 2021, Britain is no longer part of the European Union and there are a number of ramifications for welfare payments such as Universal Credit and Child Benefit.
1. Universal Credit five-year ban
A Brexit benefits ban is being imposed to prevent anyone coming to the UK from claiming income-related social security payouts such as Universal Credit for five years.
EU migrants who come to Britain from January 1 will be treated the same as non-EU migrants.
EU nationals already living in Britain and those from Ireland will not be affected.
Up until December 31, 2020, when the Transition Period ended, EU migrants could claim income-related benefits within their first year of coming here.
2. Child Benefit blocked
EU migrants who come to the UK after January 1 will also not be able to apply for Child Benefit for five years.
And, in a major rule change, they will no longer be eligible to claim Child Benefit for any of their children who still live outside the UK.
It won’t affect anyone from the EU who is already living in the UK.
3. Winter Fuel Payments stopped
The DWP said that EU migrants who come to the UK after January 1 won’t qualify for Winter Fuel Payments.
These are automatic payments of between £100 and £300 towards heating bills for those born on or before October 5, 1954.
Normally, recipients must also have lived in the UK for at least one day during a ‘qualifying week’ each year (for 2020 it was September 21 to 27).
Before Brexit, the Winter Fuel Payment could also be given to those from the EU who were not here during the qualifying week but have “a genuine and sufficient link to the UK” – this could include having lived or worked in the UK, or having family in the UK.
But post-Brexit, the payment won’t be given to EU residents who start a new life in Britain.
4. State Pension rights retained
The DWP says that you can carry on receiving your UK State Pension if you move to live in the EU, EEA or Switzerland and you can still claim your UK State Pension from these countries.
The EEA (European Economic Area) consists of the member states of the European Union (EU) and three countries of the European Free Trade Association (EFTA) (Iceland, Liechtenstein and Norway; excluding Switzerland).
Your UK State Pension will be increased each year in the EU in line with the rate paid in the UK.
You can also count relevant social security contributions made in EU countries to meet the qualifying conditions for a UK State Pension.
This guidance is for UK nationals, but the same rules on the State Pension apply to everyone regardless of nationality and when you moved.
The Government says Brexit should not have any effect on UK workplace pensions paid to ex-pats who now live overseas.
Your bank should contact you if they need to change the way you receive your work pension because the UK has left the EU.
5. Benefits changes if moving to EU
If you are moving, or thinking of moving, from Britain to an EU, EEA country or Switzerland from January 1, 2021, the rules on which UK benefits can be paid in those countries have changed.
If you are eligible, the following benefits and payments can be paid while you are living in the EU:
- Maternity Allowance
- Statutory Maternity Pay and Statutory Paternity Pay
- Bereavement Support Payment and other bereavement benefits
- Industrial injuries benefits
- Statutory Sick Pay
Social security contributions made when you are working in an EU country can help you qualify for some UK benefits during any periods you are back in the UK – including New Style Jobseeker’s Allowance and New Style Employment and Support Allowance.
For further information, see the Government guidance on where you pay your social security contributions when working in the EU.
