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Secretary of State for Work and Pensions v VB & Anor

[2024] UKUT 212 (AAC)
A couple applied for benefits, but one partner was initially denied because they weren't a UK resident. The court decided they could get the benefits because the partner was in the process of starting their own business, even though they weren't making much money yet. The court focused on the steps taken towards creating a real business rather than the profit.

Key Facts

  • VB, a Norwegian national, and AD, a British citizen, jointly claimed Universal Credit (UC).
  • The Secretary of State for Work and Pensions (SSWP) initially denied VB UC entitlement due to lacking a qualifying right to reside.
  • VB appealed to the First-tier Tribunal (FtT), which allowed the appeal based on a since-overturned Court of Appeal decision.
  • The Upper Tribunal (UT) considered three potential bases for VB's right to reside: self-employment, self-sufficiency, and retained worker status.
  • The UT considered evidence of VB's actions in setting up a lingerie business, including purchases of materials and registration with HMRC.

Legal Principles

Freedom of establishment under Article 49 TFEU and its implementation in UK law.

Article 49 TFEU, Directive 2004/38, Immigration (European Economic Area) Regulations 2016.

Right of residence for self-sufficient persons under Article 7(1)(b) of Directive 2004/38 and its implementation in UK law.

Article 7(1)(b) Directive 2004/38, Immigration (European Economic Area) Regulations 2016, C-247/20 VI v Commissioners of HM Revenue and Customs, C-140/12 Pensionsversicherungsanstalt v Brey.

Retention of worker status under Article 7(3) of Directive 2004/38 and its implementation in UK law.

Article 7(3) Directive 2004/38, Immigration (European Economic Area) Regulations 2016, KH v Bury MBC and SSWP, C-507/12 Saint Prix, SSWP v MK.

Outcomes

The UT allowed the SSWP's appeal on a point of law but remade the decision in favour of the claimants.

The UT found that VB had a qualifying right to reside based on her self-employment activities, concluding that she had taken sufficient preparatory steps towards a genuine and effective business before the date of the DWP's decision.

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