An end to the EU benefits free-for-all? UK and Germany unite in battle with Brussels for the right to refuse handouts to migrants



David Cameron also enlists Austria and Netherlands in legal fight

European Commission is challenging right of governments to limit benefits

Britain wants to restrict access to child benefit and Jobseeker's Allowance

New US ambassador to Britain warns against UK leaving the EU



Ministers are thrashing out a deal to repatriate power over benefits payments from Brussels - the first move in David Cameron’s renegotiation of Britain’s role in the EU.

The UK has joined forces with Germany, Austria and the Netherlands for the right to block EU migrants from claiming welfare payments.

The European Commission took Britain to court earlier this year for restricting some state handouts, including child benefit and Jobseeker’s Allowance, to EU nationals on the grounds that the restrictions breach the rules on the free movement of people.

United: David Cameron and German Chancellor Angela Merkel have joined forces to challenge the European Commission's demands that more migrants get easy access to benefits

But Britain is now reportedly ‘making headway’ in getting a deal with the Germans to reclaim control of benefits for national Parliaments.

Tory MPs in the loop want Mr Cameron to announce that the government will be able to repatriate power over the welfare system at his party conference in October.

The effort has acquired greater urgency since German Chancellor Angela Merkel announced this week that she wants to see Brussels ‘give something back’ to member states after the German general election on September 22.

In a major boost for the Prime Minister, Mrs Merkel said: ‘We don’t have to do everything in Brussels.’



She signalled that she wants negotiations to begin after next month’s German general election.

The European Commission took Britain to court this year for restricting some state handouts, including jobseeker's allowance, to EU nationals on the grounds that the restrictions breach the rules on the free movement of people

NEW US AMBASSADOR TELLS 'BEST FRIEND' UK: 'DON'T LEAVE THE EU '

The new US ambassador to London has warned against Britain leaving the European Union. Obama campaign fundraiser Matthew Barzun, who was sworn into his new role yesterday, insists the United States and United Kingdom are 'best friends'. But speaking at a Senate confirmation hearing hearing, he made clear he will use his role in London to urge David Cameron not to sever ties with Brussels.

He said: 'The US interest is, as the president said, for a strong UK voice in a strong EU.' The 42-year-old was US ambassador to Sweden but left to work as a citizen fundraiser on Barack Obama's re-election campaign in 2011.



Work and Pensions Secretary Iain Duncan Smith and Employment Minister Mark Hoban have visited Germany in recent months to discuss a benefits deal with Mrs Merkel’s ministers. Home Secretary Theresa May has held talks in Brussels.

Mrs Merkel wants a deal because the government in Berlin has been hit by demands from German regional governments for more money to pay the cost of benefits they must pay to non-Germans.

Mats Persson, Director of the Open Europe think tank, which has been working with the Foreign Office to draw up plans for the renegotiation with the EU, said: ‘Mr Cameron has already built a powerful coalition in Europe, including Germany, in favour of revising these rules.



'The Prime Minister this autumn has a big opportunity to push various pro-competitiveness reforms, including scrapping growth-destroying EU regulations and go for more single market liberalisation.’

A senior Tory source told The Times: '“The original interpretation of the EU directive was kept deliberately vague to allow member states to decide what to do.

'Now the European Commission is trying to impose an interpretation we disagree with. We want to take back the power to decide what to do and believe we are making headway.'

A business task force, chaired by Business Minister Michael Fallon, which is also examining what the new deal with Europe should look like, is also expected to report back ahead of an EU summit in October, the first time the leaders of all 28 member states will be together after the German elections.