Cameron’s tax credit ban could affect British expats

To ward off criticism of the Tories’ plan to ban EU nationals from receiving in-work benefits, the PM may also extend this to returning Brits.

In seeking a compromise with the EU on ways to make the UK stay as part of the European Union, David Cameron has instructed his ministers to look into whether to extend a tax credit ban on foreign workers to Brits who have lived abroad for four years or more…

As it stands, any British expat who returns to the UK – no matter how long they have been abroad – are entitled to the same working benefits as anybody else living in Britain.

But as the Prime Minister seeks to negotiate the terms of the UK’s involvement in the EU, as well as appease Conservative voters back home, Cameron has vowed to introduce a ban on EU migrants from claiming in-work benefits for the first four years of living in Britain.

And in order to earn the backing of sceptical EU politicians, the Prime Minister may extend that ban to Brits who have lived outside of the UK for four years or more and have not contributed any National Insurance payments.

Such a move would no doubt anger some expats who may be planning to return to the UK to work at some point. However, to be eligible for tax credits a worker has to be earning very low pay, and thus it is unlikely that too many expats will find themselves in such a situation.

Brits who move abroad for work tend to be professionals or otherwise highly motivated. Thus, very few will require the assistance of in-work benefits upon their return to the UK – particularly if they have managed to pick up the lingo of their adopted country.

EU members have accused Cameron of pandering to xenophobic aspects of the Conservative Party in seeking to introduce the plan to bar EU nationals from receiving such benefits. By extending the rules to Brits, the PM may find that more of his European peers back the idea.