Reform UK has announced plans to prevent most foreign nationals from claiming welfare benefits as part of a wider programme intended to reduce annual government spending by £50 billion.
Under the proposals, access to Universal Credit, housing benefit, Pension Credit, Jobseeker’s Allowance, Child Benefit, disability payments and free childcare would largely be restricted to British and Irish citizens. Only limited exceptions, such as the War Widow’s Pension and Armed Forces Compensation Scheme, would remain.
The policy would also apply to European Union citizens who hold settled status in the UK. As their rights are protected under the agreement governing Britain’s departure from the EU, implementing the measure would require the Government to reopen negotiations with Brussels.
Reform argues the present system is unfair
Setting out the proposals, Reform UK’s economy spokesman Robert Jenrick argued that welfare support should primarily serve British citizens.
“The British taxpayer is acting as the welfare state for the world,” he said, describing the current arrangement as unfair.
Jenrick claimed that approximately one in six Universal Credit recipients is neither a British nor an Irish citizen. Reform estimates that nationality-based restrictions could save £21 billion annually by the policy’s fifth year.
Furthermore, the party expects 1.5 million non-British adults to claim Universal Credit by 2029. It also projects that approximately 215,000 could claim Personal Independence Payment (PIP).
Government figures published in 2025 showed that more than one million Universal Credit claimants had been born outside the UK. This included roughly 700,000 EU citizens who arrived before Brexit and retained the right to live and work in Britain.
However, being born overseas does not necessarily mean that someone is a foreign national. Some people included in those figures may since have acquired British citizenship.
Labour has challenged Reform’s position, arguing that most migrants are already unable to access public funds. It also warned that removing support from settled EU citizens could affect people who have lived, worked and paid taxes in Britain for many years.
British citizens in Europe could also be affected
Changing the rights of EU nationals in Britain could lead European governments to introduce equivalent restrictions for British citizens living abroad.
Reform UK MP Danny Kruger acknowledged that possibility, saying it was a “reasonable principle” for a person’s country of citizenship to be responsible for their welfare.
British expatriates who lost access to European welfare systems might choose to return to the UK or seek payments from the British Government. Reform has included an estimated £500 million in its calculations to cover the possible cost of returning claimants.
Kruger suggested that an agreement could allow eligible British citizens living abroad to receive UK disability payments. However, future negotiations and the design of Reform’s proposed PIP replacement would determine their eligibility.
Long-term claimants could face compulsory community work
The nationality restrictions form only one part of Reform’s welfare programme.
Under a proposed “welfare to work” scheme, people considered capable of employment who have received benefits for more than 12 months would be required to complete 20 hours of community work each week.
Local councils would organise placements, which could include cleaning parks and high streets, carrying out minor repairs in public buildings and helping to maintain libraries or community centres.
Claimants who refused to participate, or whose performance was considered inadequate, could face sanctions and reductions in their payments.
Jenrick insisted that legitimate claimants would be treated with “respect and dignity”, while those judged to be exploiting the system would be reassessed and supported into employment.
The practical administration of such a programme is likely to attract scrutiny. Councils would need funding, staff and suitable placements, while clear safeguards would be required for people with disabilities, fluctuating health conditions or caring responsibilities.
Employers could be required to fund sickness cover
Reform has also proposed requiring businesses with more than five employees to purchase “return to work cover”.
Modelled on arrangements used in the Netherlands, the insurance would meet costs during the first two years after an employee was signed off sick. The party believes this would give employers a stronger incentive to make workplace adjustments and help staff return sooner.
Reform says it would reduce employers National Insurance contributions to offset the expense. Jenrick maintained that the arrangement would not adversely affect businesses, although questions remain over premiums, compliance costs and the impact on smaller employers.
Can Reform Deliver the Promised Savings?
Reform claims its welfare programme would save £50 billion annually. However, independent experts have questioned whether the proposals contain enough detail.
The Institute for Fiscal Studies says tougher disability assessments would generate most of the projected savings. However, previous reforms have often delivered less than governments expected.
Reform also proposes using a lower inflation measure to increase benefits. The IFS estimates this change could save £4.8 billion by 2033–34. However, claimants would receive smaller annual increases.
The Government expects welfare spending to reach £322 billion this year. This figure equals 10.6 per cent of GDP, with pensioners receiving more than half.
Political and Practical Challenges
The Conservatives questioned the programme’s credibility, while the Liberal Democrats called for greater investment in health and social care. Meanwhile, the Green Party urged ministers to raise revenue from wealthier households instead of reducing support.
Reform argues that its proposals would restore fairness and control public spending. However, implementation would require EU negotiations, major administrative changes and convincing evidence behind the projected savings.
Concerned About How the Proposals Could Affect You?
Reform’s proposals place citizenship, welfare entitlement and employment obligations at the centre of a renewed political dispute. Although the party presents the programme as a way to restore fairness and control public expenditure, its success would depend on complex negotiations with the EU, extensive administrative changes and savings that have yet to be independently demonstrated.
As benefit proposals develop, follow us for timely updates on UK immigration law and policy. If you are concerned about how potential changes could affect you in the UK, our experienced immigration team can help. With more than 20 years of experience, we provide professional guidance tailored to your circumstances. For advice or assistance, call us on 0203 959 3335 or email [email protected].
