Reform UK has announced plans to ban all foreign nationals from claiming most state benefits, a move the party claims would save £21 billion annually as part of a broader £50 billion welfare cut.
Under the proposal, only military veterans, such as Gurkhas, would be exempt. The policy extends beyond previous suggestions to limit Universal Credit for migrants, impacting even EU citizens who have settled in the UK. If enacted, these measures would necessitate renegotiating the Brexit deal, according to party statements. Reform has allocated £500 million to assist UK expatriates who might need to return to Britain and claim benefits, anticipating potential retaliation from Brussels that could affect Britons living on the continent.
Robert Jenrick, Reform UK's candidate for chancellor, stated that the benefits bill, projected to reach £407 billion by 2030, risks bankrupting Britain. He described the current system, where taxes from British workers fund benefits for overseas citizens, as both economically unsound and immoral. Jenrick argued that the public has long desired such changes and that Reform would implement a system prioritizing British citizens.
Disability Benefit Reforms
The party's proposals, detailed in a 50-page document, also include saving an estimated £22 billion by altering or eliminating disability benefits for nearly 3 million individuals. Reform intends to abolish Personal Independence Payments (PIP) and the health component of Universal Credit for working-age adults, introducing a new 'health security allowance.' Under this plan, only individuals with severe disabilities would receive direct cash payments, with others supported through local councils. Employers would be required to provide 'Return to Work Cover' insurance for employees absent for periods exceeding statutory sick pay.
Reform asserts its proposed savings would more than double the £23 billion in welfare cuts suggested by the Conservative Party, which also includes restricting sickness benefits for non-British citizens but would not affect European citizens already settled in the UK.
Political Reaction
Conservative spokesperson Helen Whately criticized Reform's announcement as hastily prepared and predicted it would lead to renewed Brexit disputes. A Labour spokesperson added that the plans could unravel the UK's withdrawal agreement with the EU, triggering years of renegotiations and potentially affecting millions who have legally resided and paid taxes in Britain for extended periods.
Reform UK estimates that between April 2022 and February 2026, the UK spent approximately £55 billion on benefits for foreign nationals, primarily those with indefinite leave to remain or EU settled status. The party's paper claimed 1.3 million foreign nationals currently receive Universal Credit. Under Reform's proposal, these individuals would lose access to Universal Credit, housing benefit, jobseeker's allowance, tax-free childcare, and child benefit. However, British citizens married to foreign spouses would maintain their eligibility for benefits, and foreign pensioners with sufficient National Insurance contributions could still claim the State Pension.