Sickness Benefits – Competent State issues for dependents of frontier workers
Social security coordination rules protect the rights of citizens should they move between the jurisdictions for work. The rules can also affect social security claims of their dependents e.g. children or partners (who do not work or pay social insurance contributions of their own).
The jurisdiction responsible for their social security payments, also called the Competent State, is often the place of employment or self-employment. Until recently this meant that children of frontier workers who applied for DLA care component in Northern Ireland based on their residence, were declined due to their parent’s employment across the border (as that was considered the jurisdiction competent or responsible for their sickness benefits).
However on 21st April 2023 a judgment was handed down that completely changes that interpretation. The ruling states that the child is entitled in their own right, and that they did not need the safety net protection of their parent’s entitlement across the border. Further details below.
See also:
- Border People DLA – Disability Living Allowance for Children
Further detail:
(Source: ADM Memo 5/24 Competing Competency & the AH Judegement Revised)
On 21st April 2023 the CoA judgment was handed down in Harrington (claimant/appellant) v The Secretary of State for Work and Pensions (respondent).
It clarifies how the different articles of Regulation (EC) 883/2004 (Reg 883) apply when an economically inactive claimant is resident in one Member State and their economically active family member is resident in another.
In this case the claimant’s mother, acting as her appointee, made a claim for Child Disability Living Allowance. The client was a British national living in the UK with her mother who was not working, being a carer for the claimant and her sibling. The claimant’s father had separated from the household and moved to Belgium for work. The Department had disallowed the award of the care component of Child DLA on the basis that Belgium was competent for payments of cash sickness benefits to the father and his family due to his status as a worker in Belgium.
The CoA judgment clarified that when Article 11 (3)(e) applies to a person, Article 21 steps in if that person has no entitlement to benefits under the legislation of their state of residence (being the competent state under Article 11(3)(e) and that the effect of Article 21 is then that the person in question would be entitled to benefits under the legislation of the state where their family member works or is self-employed. In effect, the CoA held that Article 21 was a ‘safety net’ provision, not one which determined competence and so it was not engaged in the claimant’s case.
It ruled that the UK is competent for the claimant’s cash sickness benefits (namely Child DLA care component) pursuant to Article 11 (3)(e) of Reg 883/04.
Example 1:
Alex is a child in receipt of DLA Child (Care Component). In 2019, his mother, Rachel, accepted a job in France. Alex remained in the UK with his father, David, who is his carer, and is otherwise economically inactive. As Rachel’s work brought the whole family into scope of the EU regulations, Alex is now covered by Article 11(3)(e) of Reg 883, which states that where a person is economically inactive the legislation of the member state of residence applies to them. Therefore, the UK is competent for payments of cash sickness benefts to him.
Example 2:
Beverley is in receipt of Carer’s Allowance as she is the carer for one of her parents. She is otherwise economically inactive. In 2018 her husband, John accepted a job offer in Germany, which brings himself and Beverley into scope of the EU Regulations. As Beverley is economically inactive Article 11(3)(e) of Reg 883 applies to her, and the member state of residence is competent for payments of cash sickness benefits to him.
Recent case law
SE v Secretary of State for Work and Pensions [2024] UKUT 405 (AAC) UA-2022-000202-CA
In the above case, Judge Buley held that where the UK is state of residence, it remains the competent state for cash sickness benefits even where family member of claimant is in receipt of pension from different EU state.
There is a succint judicial summary on Gov.uk -Administrative appeals tribunal decisions
Note – Specialist advice is recommended as this is a complex and evolving area of law!
Page last checked: March 2025