EU citizens made up roughly half of foreign nationals receiving Universal Credit. Another 233,000 claimants held indefinite leave to remain, a status generally available to people who have lived and worked in Britain for at least five years. The figures came shortly after Reform UK unveiled plans for a major overhaul of the welfare system that the party says could save £50 billion.
Under Reform's proposal, EU nationals who have obtained settlement rights would be barred from claiming benefits. Implementing that policy would require changes to the UK's post-Brexit arrangements with the European Union.
The Institute for Fiscal Studies has warned that the policy could have a significant effect on affected households. Tom Waters, an IFS economist, 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.”
Waters also said the proposal could encourage some migrants to seek British citizenship sooner. “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.”
IFS analysis indicates that around half of foreign welfare claimants are currently employed. Reform has also factored in a potential £500 million cost if British citizens living elsewhere in the EU return to the UK and claim benefits in response to retaliatory measures from Brussels.
Meanwhile, total Universal Credit caseload reached a record 8.36 million people in May. More than half of those claimants were not required to seek employment. A government spokesperson pointed to separate planned changes to migrant settlement rules.
“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.”






