Record number of foreigners claiming benefits

 EU citizens account for the biggest proportion of total migrants receiving Universal Credit

Daily Telegraph 19/08/26

The number of foreigners claiming benefits hit a fresh high, days after Reform promised to ban claims by overseas nationals.

Almost 1.3 million migrants were claiming Universal Credit (UC) in May 2026, according to figures published by the Department for Work and Pensions, roughly 20,000 higher than a year ago.

Citizens from the EU accounted for the biggest proportion of the total, with about half of the foreigners claiming Britain’s main unemployment benefit coming from the Continent.

Those with indefinite leave to remain, who have usually lived and worked in the UK for at least five years, accounted for 233,000 of the total.

Foreign nationals can generally start claiming welfare on the same terms as British citizens once they are granted settled status or indefinite leave to remain.

Asylum seekers are also eligible after they have been granted refugee status.

The figures were released just days after Nigel Farage’s party proposed an overhaul of Britain’s benefits system.

Robert Jenrick, Reform’s economy spokesman, outlined a package designed to save £50bn.

Under the proposal, all EU citizens granted settlement rights in the UK would also be banned from claiming benefits, which would require Mr Farage to renegotiate the UK’s Brexit deal.

Tom Waters, at the Institute for Fiscal Studies (IFS), said: “Removing benefits from non-UK citizens would mean large overnight cuts to claimants’ incomes and imply significant increases in hardship – some of this group get most or all of their income from benefits at present.”

However, Mr Waters said some migrants might seek to become British citizens more quickly in response.

“How much this saves would depend on how many of this group became citizens in response. Savings could be large if a Reform government followed through on making it hard for anyone who has previously claimed benefits to become a citizen.”

Analysis by the IFS suggests that roughly half of foreign welfare claimants are currently in work.

Reform has also said it had accounted for a potential £500m cost of British expats coming back to the UK from the EU to claim benefits if Brussels retaliates.

Official figures also showed the overall number of people on UC hit a record high of 8.36 million, with more than half of claimants having no requirement to look for work.

While much of the recent increase is because of people being moved on to UC from legacy benefits, Andy Burnham faces a growing welfare bill, with sickness and disability benefits alone set to rise above £100bn a year before 2030.

A government spokesperson said: “Last November, we set out reforms to double the standard qualifying period to 10 years for most migrants, with shorter routes for those who contribute most to the UK.

“These reforms will ensure the right to live here permanently is earned. It is right that we support people who have lived here, worked and contributed for years, and then require support.”