European immigrants should be able to claim handouts and pensions without first having to pass a test proving that they have settled in Britain, the European Union has said.
László Andor, left, has now accused Mr Duncan Smith, right, of spreading ‘simply untrue’ claims
The demand is the latest response in a continuing row after Iain Duncan Smith said that such a system would mean immigrants could get benefits on the first day of entering Britain.
The Work and Pensions Secretary said last month that it would cost taxpayers £155?million a year if the UK was forced to get rid of the “habitual resident test”.
The test makes sure that foreigners have genuinely lived and paid taxes in the country before they can claim welfare payments.
His department has been holding talks with the European Commission for months in an effort to find a solution, but sources said on Thursday that Brussels was preparing to sue Britain by the end of this year unless the test is scrapped.
László Andor, the European commissioner for social affairs, has now accused Mr Duncan Smith of spreading “simply untrue” claims that foreigners could get benefit payments immediately under the European system. Mr Andor said that Britain was the only member state requiring foreigners to pass a test to prove that they legally resided and paid taxes in the particular country.
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