The Costa del Dole: £1m-a-year bill for jobless who go off to the sun and still get their handouts

By
Daniel Martin

17:00 EST, 6 April 2012

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17:00 EST, 6 April 2012

Hundreds of unemployed people are receiving the dole every year even though they have moved abroad.

Official figures seen by the Daily Mail show that in 2010/11 £1million was paid in jobseekers’ allowance to people who have gone to another European country.

The jobless have taken advantage of rules which state that they can continue claiming the dole for up to three months as long as they claim they are ‘looking for work’ and register at the equivalent of a job centre once they arrive.

Many Brits are enjoying the sun in Spain whilst claiming benefits as they 'look for work'

Many Brits are enjoying the sun in Spain whilst claiming benefits as they ‘look for work’

But critics say there are inadequate safeguards in place to ensure that claimants are not simply taking a holiday while continuing to receive the payment of up to £67 a week.

The handouts were part of almost £2million going abroad every week to benefit claimants who have left the UK.

Tens of thousands of people  living overseas are claiming handouts such as incapacity benefit and disability living allowance, racking up a total annual bill of £92million.

The amount going abroad on attendance allowance – paid to people with disabilities – has  tripled in the last five years alone to £3million.

And the bill for winter fuel  payments, which people can get even though they have moved to sunnier climes and rarely need to turn on the heating, has doubled to £16million.

Benefits abroad

The Department of Work and Pensions was unable to say how many claimants there were for each of the benefits. But it is believed that around 2,000 could have claimed jobseekers’ allowance (JSA) last year after going to Europe.

Although there is a three-month time limit on claiming jobseekers’ allowance, some of the other benefits are indefinite.

The British government has to pay up because it is bound to European law which states that benefits acquired in one member state must be paid to those who move to another.

The deal also includes Norway, Iceland, Liechtenstein and Switzerland, which are not in the EU.

Last night ministers said they were seeking reforms to EU law to allow them to restrict handouts to many of these people.

Tory MP Philip Davies said: ‘Taxpayers will despair at the fact that people can go abroad for three months and receive the dole when everyone would expect they should be actively seeking work in the UK.

‘It’s a loophole the Government should be doing its best to close  off, and if it is to do with European regulations, it is yet another reason why we would be better off out  of the EU.’

Those who claim the dole abroad are supposed to look for work while they are there, but Mr Davies said he was sceptical that other countries would enforce this.

‘Other countries aren’t going to be busting a gut to ensure they are seeking work when they are over there, when it is the British taxpayer who is paying up,’ he said.

‘How many of these people do we think are genuinely seeking work while they are sunning themselves in the Costa Del Sol?’ 

Emma Boon of the TaxPayers’ Alliance said: ‘Many taxpayers can’t afford a holiday right now so it will seem strange to them that the Department for Work and Pensions is handing out jobseekers’ allowance to those living abroad.

‘There must be safeguards in place to ensure that people don’t exploit the system, using rules intended to allow people to look for work abroad as an excuse to take a foreign break on taxpayers’ money.

‘The welfare system is there to help those in Britain who are in genuine need and should only be paid to people living elsewhere when someone has built up a genuine and fair entitlement over time.’

Thousands of benefit claimants are cashing in whilst away in sunnier climates

Thousands of benefit claimants are cashing in whilst away in sunnier climates

People who move to Europe are allowed to claim contribution-based jobseekers’ allowance for up to three months.

Claimants must be entitled to JSA on the day they go abroad and have registered as a jobseeker for at least four weeks but for no longer than six months.

They have to be available for work and actively seeking work in Great Britain up to the day they leave, and have to tell job centre staff they are going abroad ‘to look for work’.

Claimants then have to register for work at the equivalent of a job centre in the country they are going to, and they must agree to comply with the other country’s rules on looking for work.

‘Contribution-based JSA will be paid directly into your UK bank or building society account at the UK rate,’ the DWP website says.

The figures, which relate to 2010/11, were revealed after a parliamentary question by Labour MP Ian Austin.

Last night a spokesman for the DWP said: ‘Increasingly EU rules require us to pay benefits to people living outside the UK and we do not agree with this. We are working hard with other member states to review the eligibility to benefits across  the EU.’ 

Here’s what other readers have said. Why not add your thoughts,
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All courtesy of the labour party and its benefits for all with the added bonus of breeding out the work ethic in a generation.

Whilst I agree JSA should not be aid to people abroad, some of the other benefits should still be paid. The Ex-pat have paid over 45years into the British system and therefore should be entitled to their dues, far then the millions flocking into the UK just to claim the benefits without ever paying a penny into the system. On the subject of saving, I bet the Government, have not yet cancelled the 40,000 government credit cards that are held by MPs, Local Governments, Senior Civil Servants etc. Holders still running up massive bill for the taxpayers. I do not claim any benefits from the UK and over my working life, only ever claimed 3 weeks dole money, back in the 90s. I moved to Spain, for health reasons, I was SICK of what was happening to the UK under LIEBOR and Mr BLiar.

If people have nothing to fear or hide, identity cards for all. No ID card, no benefits end of story. Take a leaf out of the Aussie book; if you leave Australia, your benefits are stopped and only restart when you return.
I can only see this as a way to counter the fraudulent claims. That costs the country billions.

Actually the issue has been “spun to suit” as only the DM can spin things like this.
The checks and safe guards are fine. Just because your unemployed does not mean you cannot go abroad. Nor does it mean you cannot look for a job as most applications are done online and over the phone these days.
To continue claiming you need to prove your also looking for work, have a relevant sick note or planned the holiday well in advance of going among other legitimate reasons. But you cannot go for months on end and really all your doing is deferring “signing on” for another week or two.

Let me know where you can holiday and enjoy the sun for 67 pounds a week. As for not needing to turn on the heating when abroad, what rubbish. This winter was very cold and fuel is extremely expensive. No natural gas or coal. Oil prices have more than doubled. DM get your facts right. The retired brits that live here have all worked and paid into the system so are entitled to the fuel benefit. In fact they save the government money as they do not claim housing benefits etc. Also, surely people with a disability have that disability where-ever they choose to live. Living over here they are also not claiming housing benefits. To continue to get the disability benefit they have to face a group of people that make the Spanish Inquisition look like a walk in the park.

Not the Taxpayer Alliance again. They keep being quoted on benefits as if they are a sensible organisation. I’m sure the JSA 3-month limit is a loophole (much like tax-avoidance shcemes) but looking at the figures it is 1/92 of the benefits shown. It’s only contribution based ? and in the end only £67 a week for 3 months. If people are smart enough to know the rules that much then maybe they should train to be tax-avoidance lawyers for the rich. The cold weather payments cost 18 times the JSA ‘scam’.

Well done Mail – keep on demonising the unemployed and those on benefits -Mr. Angry of Penge needs to get a chance to have his rant every day! Wish you had put as much column space into letting the public know about the big NHS sell -off!!!!!

So this only applies within the EU, it does not apply to expats anywhere else in the world….there is an easy answer……change the rules….benefits to be paid to UK residents only….and its about time the EU was given some “friendly” advise!!!!

It’s been going on since the last government and they did not or didn’t wish to do anything, as it’s EU law. Only now has it entered the news, courtesy of Labour MP Ian Austin, in order, no doubt that the hapless coalition get the flak.

Stop all direct to bank payments and bring back the weekly sign on and in person cash payment only. Be surprised how much would be saved.

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