The Court of Justice of the European Union ruled on Thursday 15 July in case C-709/20 (see EUROPE 12748/33) that the UK’s universal credit legislation, which denies Universal Credit to EU citizens who have a right of residence under the Brexit scheme, but who do not meet all the conditions of Directive 2004/38, is compatible with the principle of equality of treatment guaranteed by EU law.
However, according to the Court, the competent national authorities must verify that a refusal to grant such social assistance benefits does not expose the Union citizen and their children to a risk of infringement of their rights under the EU Charter of Fundamental Rights, in particular the respect of human dignity.
In June 2020, a Dutch-Croatian national, who has no resources, was granted temporary residence status in the UK on the basis of the EU residence scheme which came into force in March 2019. She challenged the refusal to grant her social benefits, arguing discrimination on the basis of her nationality.
In considering this case, the Court held that the question of whether this national is discriminated against on the basis of nationality must be assessed in the light of Article 24 on the principle of equality of treatment of Directive 2004/38 on the right of citizens of the Union and their family members to move and reside freely within the territory of the Member States, and not in the light of Article 18 of the TFEU, which prohibits discrimination on the basis of nationality.
After finding that the United Kingdom’s universal credit must be classified as a social assistance benefit within the meaning of that directive, the Court noted that access to those benefits is reserved for citizens of the Union who comply with the conditions laid down by that text. These conditions include the requirement that an economically inactive EU citizen must have sufficient resources to enjoy a right of residence of more than 3 months but less than 5 years.
The Court also confirms its case-law according to which a Member State may refuse to grant social assistance benefits to economically inactive Union citizens who, like the applicant, exercise their freedom of movement and do not have sufficient resources to qualify for a right of residence under this Directive.
The Court also held that when the authorities of the host Member State grant a right of residence such as that at issue in the main proceedings, without availing themselves of the conditions and limitations on that right laid down by Directive 2004/38, they are implementing the provisions of the TFEU relating to the status of Union citizen. These authorities are thus obliged to comply with the provisions of the EU Charter of Fundamental Rights when examining an application for social assistance benefits.
See the judgment: https://bit.ly/3wCGdtH (Original version in French by Camille-Cerise Gessant)