Thanks for your question.
All EEA/EU nationals have an automatic right to live in the UK for three months after their arrival.If you are not working during these three months, you will not be eligible to:
If you are working during the first three months, then the rules for workers apply. People from most EU/EEA countries will be eligible, but there are restrictions if you are from Romania or Bulgaria.
Having the right to reside in the UK doesn't necessarily mean you are eligible to apply for social housing, get help if you become homeless and/or claim benefits. The rules are broadly as follows:
This is even the case if the worker is no longer living in the UK, but her/his children are under 18 and still at school in the UK. This right will also apply to the partner/spouse or former partner/spouse of the worker if they are responsible for those children.
If you wish to discuss, please feel free to ask further questions.
The answer is there for you. Your parents would be entitled to claim some public funds following a period of three months residing in the UK.
If your parents would be setting up a business in the UK, then the rules for workers would apply to them. This would mean that after 3 months, they would be eligible to claim some benefits as well as apply for assistance with social housing.
With regard to medical benefits, they would be entitled to this as NHS Treatment does not constitute a 'Public Fund' for UKBA purposes. Although, the rule is slightly different for visitors to the UKA as they have to pay for any treatment.
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