Friday’s landmark decision by the Supreme Court that permanent foreign residents of Japan are not entitled to welfare benefits will discourage more municipalities than ever from doling out such aid amid ballooning public assistance expenditures, experts said Saturday.

Responding to a lawsuit filed by an 82-year-old Chinese resident of Oita, the top court stated in the first ruling of its kind that, legally speaking, permanent foreign residents don’t qualify for public assistance because they aren’t considered Japanese nationals.

The ruling is significant in that it finally clarifies whether permanent residents are eligible to claim welfare. For years, municipalities have been distributing welfare payments to financially needy foreigners with permanent or long-term residency status, including the spouses of Japanese and migrant workers from Brazil.

Municipalities have been granting aid at their own discretion after being advised to do so from a “humanitarian” point of view by the central government in 1954. But that never meant foreigners actually qualified for the aid like Japanese. Although they could apply for it, they had no recourse if turned down, because the way the municipalities see it, welfare payments had never been foreigners’ legal right to claim.

The verdict legally enshrines this de facto state of affairs, making it official that foreign residents have no legal basis to claim eligibility for public assistance.

From now on, foreign residents will still be free to apply for welfare payments but will likely face slimmer odds of receiving them, experts said.

“The impact of the Supreme Court decision is huge,” said Eriko Suzuki, an associate professor at Kokushikan University in Tokyo who specializes in foreign labor issues.

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