Ministers vow to fight Brussels over benefits for immigrants

The commission has referred the UK to the EU’s Court of Justice over the right-to-reside test imposed on nationals from member states.

The check is said to be discriminatory because it goes beyond the standard eligibility criteria for welfare payments.

But Work and Pensions Secretary Ian Duncan Smith accused the commission of a “blatant land grab” against national governments and vowed to fight the move.

“What is going on at the moment, this is the key to it, is that the commission is trying to use the freedom of movement as a way in to start controlling what national governments do about those who are not in work in their countries,” he said.

“We are very keen that people can travel Europe and they can seek work. What we are not keen (on) is that we have a system here that allows them to select the better benefits system that they can come and use.”

Mr Duncan Smith dismissed “gauche” claims from Ukip leader Nigel Farage that the UK will not be able to resist the commission’s demands.

“The reality is that I have talked to the Germans and the Austrians and others and they all agree with me that this is outwith the treaties,” he added.

Mr Farage described Mr Duncan Smith’s promise not to cave in as “a very bold assertion that he is making in vain”.

“EU law has precedence over UK rules. This specific requirement built in to UK legislation goes beyond EU legislation and rubs against the principle of free movement of labour which is the keystone of the whole EU project,” he said.

“The very fact that the commission has the audacity to haul the UK government in front of the European Courts of Justice for a very long and expensive trial is clear evidence that in a Britain versus European Union fight, we just don’t win. The claim by the Conservative government that they can in some way protect the UK against exploitation of our benefits system, or the assertion by David Cameron that he can somehow change our relationship with the EU and soften Brussels’ stranglehold on its 27 member states, is being embarrassingly undermined.”

Labour, which introduced the right-to-reside test, backed the Government’s stance.

Shadow Home Secretary Yvette Cooper said: “Most people who come to Britain work and contribute. But it is right that we should have checks in place to make sure people contribute or show commitment to this country before they benefit. Indeed Labour has called on the Government to strengthen the residence test not weaken it, to make it clear that people should live here for some time before they are eligible for things like Jobseeker’s Allowance.

“The EU Commission are wrong to try to prevent member states having sensible checks like this as it will increase public concerns about migration and give member states an incentive to cut employment support for everyone, which is against everyone’s interests in Britain and across Europe.”

In a statement, the commission said: “UK nationals have a ‘right to reside’ in the UK solely on the basis of their UK citizenship, whereas other EU nationals have to meet additional conditions in order to pass this ‘right to reside’ test.

“This means that the UK discriminates unfairly against nationals from other member states. This contravenes EU rules on the co-ordination of social security systems which outlaw direct and indirect discrimination in the field of access to social security benefits.”