BRITS living in Spain are facing an anxious time after Reform UK unveiled plans to ban EU nationals from accessing benefits in Britain.
Experts have warned the move could prompt Brussels to adopt tit-for-tat measures across the EU, meaning UK nationals living in member states could also be stripped of access to welfare in their countries of residence – if and when Reform is elected to government.
The proposals have led to uncertainty among Spain’s British expat and immigrant community.
Which benefits could be affected, and – crucially – would it include access to Spanish pensions that thousands of British retirees rely on?
What benefits are Britons entitled to in Spain, and what benefits are EU nationals entitled to in the UK?
Under the Withdrawal Agreement signed between Britain and the EU after Brexit, British citizens who were already living in Spain by December 31, 2020, have broadly the same social-security rights as Spaniards.
This means they have access to the usual workplace benefits, including unemployment benefits, sickness and disability payments.
They are also entitled to family benefits and other social-security support, provided they meet Spain’s normal eligibility requirements.
But what does the agreement say about pension rights?
In Spain and the UK, a state pension counts as a social-security benefit, and is generally earned through payments to each country’s social security system throughout a person’s career.
This means British residents who have paid into Spain’s system can build up entitlement to a Spanish state pension, as long as they meet the normal requirements.
If someone has worked and paid social-security contributions in both Spain and the UK, the agreement allows the two countries to take those periods into account when determining whether they qualify for a state pension.
Each country then pays the pension based on the contributions made in its own system.
The Withdrawal Agreement similarly protects EU citizens living in Britain, allowing them to access UK benefits on broadly the same terms as British citizens.
That includes benefits such as Universal Credit, State Pension, Pension Credit, Jobseeker’s Allowance, PIP, Attendance Allowance, Carer’s Allowance and Child Benefit.
The agreement, however, does not guarantee everyone every benefit.
Claimants still have to meet the normal rules, including requirements relating to income, social security payments, age or residence.
The protections generally apply to people who were already living in the other country by December 31, 2020. Those who moved afterwards are covered by different rules.
What benefits has Reform UK proposed to scrap for foreigners in Britain?
Reform UK’s new welfare package would stop foreign nationals, including EU citizens with settled status, from claiming benefits such as Universal Credit, Housing Benefit, Pension Credit, Jobseeker’s Allowance, Child Benefit and disability payments.
The biggest concern for Britons in Spain is that stripping protected EU nationals of their benefit rights could trigger a reciprocal response affecting British expats across Europe.
That could mean restrictions on state pensions, unemployment benefits, disability payments, family benefits and other social-security support currently available to protected British residents on the same terms as Spaniards.
However, none of this would happen automatically if Reform introduced its proposed restrictions.
The actual impact on Britons in Spain would depend on what happens to the Withdrawal Agreement and how Brussels and EU member states respond during any ensuing negotiations.
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Reform UK’s plans and what it would it take for the bans to come into force
Announced on Monday by Reform Treasury secretary Robert Jenrick, the party’s plan would impact millions of foreigners living in Britain – including EU nationals with settled status.
The proposal forms part of a wider £50 billion overhaul of the welfare system, which Reform says is currently too expensive and too generous.
The party claims banning most benefits for foreign nationals would save taxpayers £21 billion a year by the fifth year.
Reform MP Danny Kruger told BBC Breakfast on Monday he would ‘understand it’ if European countries decided to ‘deny our nationals access to their welfare system’ in response to the plan.
In fact, Reform has already planned for this eventuality, with Kruger suggesting affected Britons in Europe could either return to the UK to claim benefits there, or potentially receive British disability payments abroad – provided they meet Reform’s eligibility criteria.
Because social security rights are reciprocal between Britain and the EU, Reform’s plan to strip EU nationals of welfare would lead to a renegotiation of the Withdrawal Agreement.
Experts insist any renegotiation would likely result in Brussels imposing equivalent restrictions on Brits living across the EU – including nearly 270,000 Britons currently registered as residents in Spain.
For that to happen, however, Reform would first have to be elected to government, and any changes to welfare rights in Britain or the EU would then depend on the outcome of negotiations with Brussels.
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