EUROPEAN nationals may be facing “systematic” prejudice as Universal Credit knock-backs become part of the Government’s “hostile environment”, it is claimed.

EU citizens and those from Norway, Switzerland, Iceland and Liechtenstein can currently claim UK benefits providing they have settled status, or pass the habitual residence test.

They must prove the UK is their main home and that they are in work or have a claim to social security through a partner or a child.

But in Scotland’s biggest city, residents are said to be missing out on a swathe of payments under Universal Credit – which covers housing benefit, child tax credit, working tax credit and more – in what has been described as an “emerging trend” of rejections for those born outwith the UK. And it is feared this could be connected to Theresa May’s “hostile environment” for immigrants, the Sunday National can reveal.

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At Govanhill Housing Association – which serves a large Glasgow community including 4000 EU citizens, the problem has hit tenants from Romania and Slovakia, as well as Poland, the Czech Republic, Lithuania and Estonia.

A staff member said: “We have always felt there are obstacles put in the way of people from the EU. There are cases that should be a shoo-in were people are being refused and we have absolutely no idea why.

“It can only be one of two things – either the quality of adjudication is very poor or there’s something more systematic going on. There isn’t a third option.

“We are not talking about missing a week or two... people’s arrears aren’t being paid and they are being left without money to live on.

“We can’t help but think there is less favourable treatment being meted out by dint of being EU or EEA citizens – the DWP have access to people’s work records, all the information they require. They have the ability to establish whether someone has been a worker, so is there a deliberate policy?”

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Sean Mills, of the city’s Bridgeton area, says his family is amongst those missing out thanks to a refusal for Italian wife Serena, who was unable to return to work as a barista after the birth of their son Ciaran and has been living in Scotland since 2013.

He said: “We have worked and paid taxes for years. We provided two case files of documents – P45s, P60s and payslips dating back to 2013-14. She has studied here, she has worked here, she has had a son and married a Scottish guy here.

“I thought they must have made a mistake, but that is the decision. We are really, really struggling since I had to leave my job due to mental health problems.”

The concerns are revealed on the day that Westminster’s Scottish Affairs Committee launches a new inquiry on welfare.

Glasgow Central MP Alison Thewliss said: “For months, I and my SNP colleagues have been telling ministers about the problems being faced by EU citizens with respect to Universal Credit applications.

“In the case of my constituents Mr and Mrs Mills, I’m at a loss as to what more evidence the DWP could have wanted... for the UK Government, her situation isn’t deemed representative of someone who intends on staying in the country.

“Perhaps most worrying is the emerging trend with respect to EU and EEA citizens being turned down for Universal Credit.”

The DWP said it “does not set immigration rules which determine non-UK citizens’ eligibility for benefits”. A spokesman said: “The Habitual Residency Test has been in place since 1994 to ensure only people with a legal right to reside in the UK... can claim welfare support.”