The portability of social rights of the United Kingdom with the European Union: Facts, issues, and prospects
| Published date | 01 December 2018 |
| Author | Jacques Wels,Robert Holzmann |
| DOI | 10.1177/1388262718819514 |
| Date | 01 December 2018 |
| Subject Matter | Articles |
Article
The portability of social rights
of the United Kingdom with
the European Union: Facts,
issues, and prospects
Robert Holzmann
Austrian Academy of Science, Vienna, IZA (Institute for Labour Economics),
Bonn and CESifo Group, Munich, Germany
Jacques Wels
University of Cambridge, UK
Abstract
The portability of social benefits – such as the state pension, child allowances and unemployment
benefits – for international migrants is regulated by social security agreements concluded between
countries or at supra-national level, such as within the European Economic Area (EEA). Focusing
on the United Kingdom, this article aims at capturing the main issues that have been recently raised
by such agreements, with particular emphasis on the case of migration between the UK and
Europe. The first part of the paper summarises the main consideration researchers and policy
makers should bear in mind in looking at portability. Using data from the 2013 World Bank
migration matrix, the second part of the paper compares the stock of British migrants residing
abroad and the stock of foreigners living in the United Kingdom. The third part of the paper
summarises the main issues that were raised in relation to the EEA multilateral agreement including
the notion of residence, the state pension, family allowances, and the portability of health care
benefits. The conclusions highlight the main concerns and options that lie ahead following the
withdrawal of the UK from the European Union.
Keywords
social security agreement, portability of social benefits, health care, pensions, United Kingdom,
Brexit
Corresponding author:
Jacques Wels, Department of Sociology, Social Sciences Research Methods Centre (SSRMC), University of Cambridge,
Free School Lane, CB2 3QA, Cambridge, UK.
E-mail: wjacques@ulb.ac.be
European Journal of Social Security
2018, Vol. 20(4) 325–340
ªThe Author(s) 2019
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DOI: 10.1177/1388262718819514
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Introduction
According to the European Social Survey (wave 7), about eight per cent of people aged 18-64 and
living in the UK have already lived and worked abroad for more than six months.
1
They paid social
security contributions in the country in which they worked and, consequently, are potentially
entitled to claim benefits while working and pension and health benefits when they retire. A few
may have fallen ill in the country where they worked and benefitted from its national health
service/insurance. Some others may have lost their job, returned home, and received – subject
to conditions – unemployment benefits. Others may have received a family allowance for children
who stayed at home.
The way social security benefits – or a subset of them – are made portable is regulated at
bilateral or multilateral level. The most prominent way is through bilateral social security agree-
ments (BSSAs), in which two coun tries agree which migrant workers (and, potentially , their
families) they will offer social secu rity benefits to in the country of residence and the home
country. The content of these agreements varies from one migration corridor to another and is
often the subject of lengthy negotiation. Within the European Economic Area (EEA) – i.e. member
countries of the European Union (EU) plus Norway, Iceland, Liechtenstein and plus Switzerland –
portability is regulated multilaterally at the level of supranational law, and covers essentially all
social benefits.
This paper discusses the main portability issues for two reasons: First, while the debate relating
to Brexit has focused on migration, little has been said about the portability of social benefits and
the ways in which portability is regulated within the EEA. Yet, given the size of the migrant
population from and into the UK, the fate of social protection for British migrants residing abroad
and European migrants resident in Britain after Brexit is important and requires an understanding
of what is at stake.
Second, the negotiation between the UK and EU to settle the post-Brexit arrangement on
portability may take place within the framework of the EEA and hence cover all the benefits that
are currently regulated. It may, however, also be replaced by a set of multilateral and bilateral
agreements of differing range and depth. Such an approach will require considering which benefits
should be made portable and with which countries – a challenging task that requires a great deal of
information and reflection.
To this end, Section 2 provides a short presentation on bilateral social security agreements
(BSSAs), the types of social benefits that are made portable, and problems that may arise. Using
the World Bank Migration Matrix database (2013), Section 3 p rovides selected figures about
BSSAs involving the UK and the main migration corridors, worldwide and at the European level.
Section 4 highlights issues raised recently on migration and portability within the EEA. Finally,
Section 5 discusses the main ch allenges that lie ahead in the context of the UK’s schedu led
withdrawal from the EU in 2019.
The portability of social benefits: A brief overview
The international portability of social benefits may be achieved in various ways: through unilateral
action, bilateral or multilateral agreements, benefit redesign or multinational providers (Holzmann
1. In the EU, a minimum of six months’ residence is often taken as a criterion for being considered a resident of the host
country.
326 European Journal of Social Security 20(4)
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