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Adviser Update: New Guidance on EU Settlement Scheme and Benefit Entitlement

Effective Date: 2 December 2025
Reference: DMG Memo 15/25


What’s Changed?

The Department for Work and Pensions (DWP) has issued updated guidance following the implementation of the Border Security, Asylum and Immigration Act 2025 (BSAI Act). This simplifies decision-making for advisers handling claims from EU, EEA, and Swiss nationals.


Key Points

  • Section 45 of the BSAI Act confirms:
    • All EU, EEA, and Swiss nationals (and their family members) with EU Settlement Scheme (EUSS) status are treated as beneficiaries under the Withdrawal Agreement or relevant separation agreements.
    • Applies even if they were not residing in the UK under EU law before 31 December 2020.
  • Impact on Decision Making:
    • No need to assess Article 10 scope for these individuals.
    • Previous guidance in DMG Memo 26/20 (paras 39–40) is now obsolete.
    • The Habitual Residence Test still applies—claimants must have a qualifying right to reside at the date of claim.

Benefits Affected

  • Universal Credit
  • Housing Benefit
  • State Pension Credit

Why This Matters

This update streamlines processes and reduces complexity for advisers. By relying on Home Office decisions regarding EUSS status, DWP ensures consistency and clarity in benefit entitlement.


Action for Advisers

  • Apply this guidance to all decisions made on or after 2 December 2025.
  • Update DMG annotations (para 073496) and remove references to DMG Memo 26/20.

Practical Tips

  • Check EUSS Status First: Confirm the claimant’s EUSS status via Home Office records before proceeding.
  • Don’t Overcomplicate: If EUSS status is present, skip Article 10 checks—this is no longer required.
  • Habitual Residence Still Counts: Ensure claimants meet the Habitual Residence Test for income-related benefits.
  • Update Notes: Record the memo reference (DMG 15/25) in your case notes for audit clarity.
  • Stay Current: Bookmark GOV.UK for the latest DMG updates and share this memo with your team.

Stay informed. For full details, refer to DMG Memo 15/25 on the official GOV.UK site.


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