European Union and Britain Wrangle Over Social Security Rules - by Andrew Higgens and Stephen Castle

In a move certain to stoke British frustrations with the European Union, the 27-nation bloc’s executive arm is taking Britain to court over restrictions on who can receive social security benefits.

The European Commission, announcing its decision on Thursday, took issue with Britain’s tight criteria for residency benefits, which differ from a Europe-wide standard meant to ensure support for any citizen of a European Union country who lives in another member country. As a result, it said, Britain has denied child support and other benefits to “potentially tens of thousands” of foreign citizens.

The British government promised to contest the case before the European Court of Justice, based in Luxembourg, saying it believed its rules complied with European Union laws. The case is unlikely to be heard for many months, but if the court rules against Britain, the country will have to amend its rules or face large fines.

The British standard for benefits, called “right to reside,” has been challenged in its own courts for years. The dispute with the commission has been brewing since 2010, and the decision to initiate court action is likely to stir the growing debate in Britain over its relationship with the European Union. 

If re-elected in 2015, Prime Minister David Cameron has promised to loosen British ties to the bloc, bringing back more decision-making to home legislators, and to hold a referendum by the end of 2017 on whether to remain a member.

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