Rising Numbers of Foreign Nationals Receiving Universal Credit
Recent data has revealed that foreign nationals now constitute one in six recipients of the universal credit scheme. In July, nearly 1.3 million migrants, many of whom are not employed, received this benefit. This figure represents a significant increase from 930,000 in 2022, highlighting a growing trend in the number of non-British individuals accessing the system.
This surge has prompted the Conservative Party to announce ambitious plans aimed at preventing foreign nationals from claiming universal credit and other benefits. The objective is to reduce government expenditure by billions of pounds. For the 2025/26 fiscal year, ministers have allocated £141.2 billion for welfare, with the majority directed towards universal credit.
Helen Whately, the shadow secretary for work and pensions, emphasized the need for a new approach to welfare. She stated, “We need a new approach to welfare. The Government must put Brits first instead of handing out cash to foreigners.” Whately criticized the current system, suggesting it rewards those who have contributed nothing while penalizing British workers, families, and pensioners.
She further highlighted that every pound spent on welfare for foreign nationals is a pound taken from British citizens. Her vision includes halting the spending on benefits for non-citizens, restricting universal credit and sickness payments to British citizens, and achieving £23 billion in welfare savings. Whately argued that Labour and Reform would take the opposite approach, continuing to spend, tax, and keep Britain in decline.
Breakdown of Universal Credit Recipients
According to Department for Work and Pensions (DWP) figures, 6.7 million people receiving universal credit are British, Irish, or residents with no immigration restrictions. This accounts for 83.8% of the total 8 million recipients. The next largest group consists of individuals with EU Settlement Scheme settled status, making up 9.6% of the total. Another 2.7% have indefinite leave to remain, while refugees account for 1.5% of recipients. Additionally, 0.7% came through safe and legal humanitarian routes, such as the Ukraine and Afghan resettlement schemes.
Notably, 60% of foreign recipients are not in employment, a situation described by campaigners as unsustainable. Universal credit is designed to assist individuals with living costs, available to those on low incomes or unable to work. To access the benefit, individuals must have an immigration status that allows them recourse to public funds. Those without such status cannot claim most benefits, tax credits, or housing assistance.
Increasing Numbers and Policy Changes
The total number of people on universal credit has risen from 6.9 million in July 2024 to 8 million a year later, marking the highest level since its introduction in 2013. This increase has been largely driven by individuals not required to work. The number of claimants with ‘no work requirements’ reached 3.7 million in July, a 39% increase or 1 million more since July 2024.
This means that 46% of all universal credit claimants are not expected to prepare or look for work. This group includes those in full-time education, over the state pension age, parents with children under one, and those deemed unable to work.
As of the 2021 Census, around 16% of the UK population were not born in the country. However, these figures cannot be directly compared to the DWP’s immigration breakdown due to differences in data collection methods.
A DWP spokesperson mentioned that the government has announced plans to extend the waiting period for most migrants to access benefits from five to 10 years. They also noted that the spending on non-UK citizens aligns with the overall increase in universal credit spending, with the proportion of payments to foreign nationals decreasing since July 2024.
Ongoing Debates and Future Implications
The increasing reliance on universal credit and the rising number of foreign nationals receiving it have sparked debates about the sustainability of the UK’s benefits system. Questions remain about whether the system can withstand the pressure from a growing migrant population and the rising number of claims.
With the proposed changes by the Conservatives, there is speculation about whether universal credit could become an exclusive benefit for UK citizens. The potential impact of these policies on both the economy and social welfare remains a topic of intense discussion. As the political landscape continues to evolve, the future of the benefits system will likely be shaped by ongoing debates and policy decisions.