PM warned over 'nasty' UK image

David Cameron has been warned Britain is at risk of being seen as a “nasty country” as he presses ahead with a clampdown on benefits for migrants.

The Prime Minister has set out radical plans to overhaul welfare rules including stopping new arrivals from the European Union (EU) getting out-of-work benefits for three months.

But in an outspoken intervention, European employment commissioner Laszlo Andor labelled the move as an “unfortunate over-reaction” and cautioned Mr Cameron not to interfere with rules underpinning the European single market, saying it could be the start of a “slippery slope”.

The PM has unveiled the reforms five weeks before access restrictions to the UK labour market are lifted for for Romanian and Bulgarian nationals, but Labour warned the changes will not be in place in time.

Mr Andor, a Hungarian economist, accused Mr Cameron of not presenting the “full truth” about the issue and suggested the reaction in the UK was based on “hysteria”.

“This is an unfortunate over-reaction,” he said. “The British public has not been given all the truth and the full truth about this subject. So we would need a more accurate presentation of the reality, not under pressure, not under such hysteria which sometimes happens in the UK.

“The unilateral action, unilateral rhetoric, especially if it is happening at this time, is not really helpful because it risks presenting the UK as the kind of nasty country in the European Union.”

Mr Andor also warned Mr Cameron against any action which could undermine the single market, which Britain strongly supports.

He said: “If we start to dismantle some of the rules of the single market which should apply to everyone, of course others may invent other ideas, other proposals, and then we end up on the slippery slope which nobody particularly wants.”

After a three-month period without benefits, EU nationals will only be able to claim for a maximum of six months unless they can prove they have a genuine prospect of employment, Mr Cameron said.

The Prime Minister said the test for migrants who want to claim benefits was being toughened up with a new minimum earnings threshold.

Those found begging or sleeping rough could be deported and barred from re-entry for 12 months unless they can show they have a proper reason to be in the UK, such as a job.

Elsewhere, firms that pay less than the minimum wage will face fines of up to £20,000 in a bid to prevent undercutting of British workers.

Mr Cameron also demanded wider EU reforms for the future, suggesting labour movement from countries joining the EU could be limited until they hit a certain level of GDP per head.

“We need to face the fact that free movement has become a trigger for vast population movements caused by huge disparities in income,” he said.

“It is time for a new settlement which recognises that free movement is a central principle of the EU, but it cannot be a completely unqualified one.”

The Prime Minister’s announcements come amid calls from dozens of Conservative MPs for the Government to ignore European law and extend controls on Romania and Bulgaria access to the UK until 2018.

Mr Cameron said Labour’s failure to keep tougher limits on countries such as Poland in 2004 was a “monumental mistake”, and he “shared concerns” about what would happen after January 1.

Deputy Prime Minister Nick Clegg said the Liberal Democrats were fully signed up to the rule changes.

“These are sensible and reasonable reforms to ensure that the right to work does not automatically mean the right to claim,” he said.

But for Labour, shadow home secretary Yvette Cooper said the Prime Minister was “playing catch-up” after failing to take action earlier.

“Why has it taken him eight months to copy Labour’s proposal to make the Habitual Residence Test stronger and clearer?” she said.

“After Labour proposed this change in March, the Government said it was all fine and nothing needed to change. Yet now, rather than following a coherent plan, they are flailing around.”

UK Independence Party leader Nigel Farage said the measures fall “way short” of what the British public want.

“Our borders will remain open. Migrants will still be entitled to out-of-work benefits after just three months. It isn’t nearly good enough,” he added.

Conservative MEPs have set up a working group which plans to hold talks with other member states and European Commission officials and produce proposals within weeks for wider reform of the freedom of movement.

It will be headed by former immigration minister Timothy Kirkhope, who said the UK had allies in the fight.

He said: “We must never forget that over two million British people take advantage of their right to live and work elsewhere in the EU. Free movement is a cornerstone principle of the single market, and it can be good for business if handled correctly. However, we cannot ignore concerns about unlimited immigration.”

Mr Cameron’s official spokesman said measures to strengthen the residency test and to impose a six-month limit on Jobseekers’ Allowance claims will be in place by January 1.

But he said the other measures are likely to take longer as they will require secondary legislation or new regulations, while the plan to increase fines for employers paying less than the minimum wage will need primary legislation in Parliament.

Mr Cameron has been accused of “panicking” over a looming rebellion by Tory backbenchers who want to extend transitional controls on Bulgarian and Romanian migrants for a further five years.

An amendment to the Immigration Bill tabled last week by Amber Valley MP Nigel Mills, requiring the controls to remain in force until the end of 2018, has been signed by 45 other Conservative MPs.

However, immigration minister Mark Harper last week said such a move was “simply isn’t legally possible”.

Source Article from http://uk.news.yahoo.com/pm-pledges-action-eu-benefits-000220481.html

PM warned over 'nasty' UK image