Blunkett rules out work permits but curbs welfare for EU migrants

David Blunkett opened the doors to workers from the former Iron Curtain countries about to join the European Union yesterday, but barred them from claiming any benefit until they had been in a job for at least a year.

Despite the misgivings of some cabinet colleagues, the Home Secretary stuck by the government decision to offer the citizens of Poland, Hungary and the Czech Republic and five other East European nations unlimited access to the British labour market. He ruled out introducing a work permit scheme, but announced that economic migrants from those countries would be required to register with the immigration authorities.

But Mr Blunkett responded to accusations that the liberal regime could attract "benefit shoppers" by confirming tough restrictions on welfare payments until May 2006 - and possibly later. Tony Blair warned in a radio interview: "If they can't support themselves, they will be put out of the country."

It was unclear last night whether the new British rules would fall foul of EU laws and precipitate a legal challenge.

Under the treaties negotiated with the countries about to join the EU, the UK can discriminate between nationals of old and new member states on access to labour markets, but not on social security benefits.

The Home Secretary's Commons statement followed a fortnight of uncertainty in Govern- ment over how to respond to the expansion of the EU on 1 May.

Ministers have been shaken by right-wing newspaper campaigns warning that hundreds of thousands of economic migrants are heading for Britain and the late decision of several EU countries to impose draconian restrictions on workers from the "accession countries".

Mr Blunkett said ministers were prepared to re-impose restrictions on the labour market if greater than expected numbers arrived at any stage over the next seven years. But he told MPs: "We currently have over half a million vacancies and will benefit from the skills, flexibility, and willingness to work, of these new migrant workers, as we have in the past."

However, the European Commission last night raised doubts over the principle of the tough restrictions on benefits for at least two years. Antonia Mochan, spokeswoman for the European Commissioner for employment and social affairs, said: "As far as social security is concerned, the principle of non-discrimination between nationals of old and new member states applies from 1 May."

The UK argues that its plans are in line with EU law, but some officials believe they could be challenged in the European Court of Justice.

Last night, the Confederation of British Industry said the Government had struck a "sensible balance" between inviting in migrant workers and protecting the benefits system from abuse. Digby Jones, its director general, said: "Britain must send a clear message to overseas workers that their skills will be welcome here. But at the same time firms also want migration to be sensitively managed."

But David Davis, the shadow Home Secretary, warned the expansion of the EU would place "huge pressure" on housing and public services and called for new arrivals from the accession countries to be issued with work permits.

Mark Oaten , Liberal Democrat home affairs spokesman, said: "These proposals are a knee-jerk reaction to tabloid press campaigns. The Government has no evidence that there will be a problem with migration or benefit abuse."

Steve Richards, page 31

THE PROPOSALS

FROM MAY 1, there is nothing to stop the citizens of the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia and Slovenia from arriving in Britain to work.

If they have a job to go to, they will have to prove their identity and join a register. They will then be issued with a document for employers to check before they start work.

Alternatively, they will be required to register within one month of securing a job. Every time they change job they will have to update their documents. Those who choose to work for themselves will not be required to register. After they start working, they will be allowed to use hospitals and send their children to school.

The open-borders work policy can be revised at short notice, with the possibility of a work permits scheme, if there are "destabilising effects on the labour market", the Government says.

But amid concerns that Britain could become a magnet for "benefit shoppers", there will be limits on their entitlement to welfare between 1 May 2004 and 1 May 2006 at the earliest.

They will have to be in continuous employment for 12 months before they can claim Income Support, Job Seeker's Allowance, State Pension Credit, Housing Benefit and Council Tax Benefit or apply for social housing.

The Government is reserving the right to take drastic action against people who attempt to make repeated claims for benefit. It says they will be deported to their home nations, although under the terms of the EU's expansion they have the right to return to Britain to make a fresh claim.

The restrictions will not apply to the nationals of the two other countries about to join the EU, Cyprus and Malta. They will be treated in the same way as people from the established 15 members of the EU.

Nigel Morris