EEC Regulation 1408/71 co-ordinates the social security systems of member states for people who move within the European economic area. It prohibits discrimination on grounds of nationality; provides that contributions for benefits for sickness, invalidity, unemployment and retirement made in one member state may be taken into account to help satisfy the entitlement conditions in another; and determines which state is responsible for the payment of benefits. Income-related benefits, such as income support, are not paid to people who move permanently to other member states.
There is no indication of any major impact as a result of this Regulation on DWP administered benefits since EU enlargement in 2004. We would expect the same to be the case after Bulgaria and Romania join the EU.