Reform UK has outlined a proposal to ban foreign nationals from claiming nearly all welfare benefits, a move the party estimates would save £21 billion per year as part of a broader £50 billion reduction in the welfare bill. The party described the current system, where taxes from British workers support overseas citizens, as 'immoral'.

This policy significantly expands on Reform UK's prior plans to restrict Universal Credit for migrants. Under the proposed change, even European Union citizens who have settled in the United Kingdom would be ineligible for benefits such as jobseeker's allowance and housing benefit. The party indicated that this would necessitate amending the Brexit agreement. Military veterans, such as Gurkhas, are noted as an exception and would not be subject to the ban.

In response to the proposal, the Labour party cautioned that such a policy could strip support from millions of individuals who have legally resided, worked, and paid taxes in Britain for many years, sometimes for decades.