Rachel Reeves says Labour may support proposals to extend period for which new migrants are unable to claim benefits
A growing consensus among Britain's main political parties over the need to impose further curbs on benefits for EU migrants was emerging on Sunday after Labour said it might be prepared to countenance further restrictions.
Rachel Reeves, the shadow work and pensions secretary, said that Labour would support "concrete" and "workable" proposals that uphold the contributory principle that "you have to pay something in before you get something out".
The vocal support from Reeves for the contributory principle – the cornerstone of benefit systems in many parts of continental Europe – will be noted in Labour circles because her predecessor, Liam Byrne, fell foul of Ed Miliband when he made a similar call. But Reeves, who is talked of as a future shadow chancellor, has more leeway than Byrne.
Reeves said Labour was prepared to examine further EU benefit reform after Duncan Smith raised the prospect of extending the three-month ban on EU benefits to two years. The work and pensions secretary told the Sunday Times that he has been working with Germany, Italy, the Netherlands and Finland to deal with "benefit tourism".
Duncan Smith said EU migrants should be told: "Demonstrate that you are committed to the country, that you are a resident and that you are here for a period of time and you are generally taking work and that you are contributing At that particular point...it could be a year, it could be two years, after that, then we will consider you a resident of the UK and be happy to pay you benefits."
Government sources played down Duncan Smith's remarks. They said the government wants to toughen restrictions on benefits – and would like to increase the time before they can be claimed – but they said that Duncan Smith mentioned the two-year delay after being asked about Boris Johnson, who has spoken of such a delay, and about Nigel Farage, who wants to impose a five-year ban on immigration.
Reeves, who noted that the government was rowing back from Duncan Smith's remarks, said Labour had supported the three-month delay on paying benefits to EU migrants and would be willing to go further. The shadow work and pensions secretary told the Murnaghan programme on Sky News: "If they come up with concrete proposals that are workable, that are practical, that protect our social security system, that protect that principle that you have to pay something in before you get something out, then we would support that."
Labour appeared to be hardening its stance on the EU last week when Chuka Umunna, the shadow business secretary, told BBC1's Question Time that skilled EU citizens should be banned from taking low-skilled jobs in Britain. Labour sources said Umunna had been mistaken and had not intended to change one of the founding principles of the EU – freedom of movement – to prevent EU citizens travelling to Britain in search of a job.
Reeves said: "Chuka was that people should be able to come here to work and to access jobs but not to play the system because it has got to be right that you only get something out of our social security system if you put something in, you shouldn't be able to move around the European Union in search of the best benefits."
Nick Clegg backed the need to curb benfits for EU citizens. He told the Andrew Marr Show on BBC1: "I'm up for establishing a very clear principle that says that the freedom to move around the European Union to look for work is one thing, but it's not the same as the freedom to claim benefits on day one, no questions asked, no strings attached."
But the deputy prime minister dismissed as a "Chinese-style family policy" a separate proposal by Duncan Smith to save £4bn by limiting child benefit to the first two children: "I will look at all proposals. But some of the ones I have seen floated – for instance the idea of a two-child policy. I am not in favour of penalising the young. I am not in favour of a sort of Chinese-style family policy saying the state says it is OK to have two children, it is not OK to have three children.
"Remember this is child benefit that goes to families, many of whom are working. They are working very hard, often on low incomes. My priority is a fair approach to ongoing fiscal consolidation. If you have to balance the books you mustn't balance the books only on the working-age poor."
The growing cross-party support for further restrictions risks a row with Brussels. Laszlo Andor, the European commissioner for employment, told The World This Weekend on Radio 4: "I think I perfectly justified my early warning about the way the rhetoric developed in the UK results in losing friends and the risk of a bad image unfortunately is still there."
Andor challenged the intervention by Umunna. "I believe that these rights they apply to EU citizens regardless of having or not having a job at the same time. Exactly at this time when there are such great imbalances in the European economy they should say that the economies, the labour markets of particular countries also provide opportunities for jobseekers."
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