Reform UK has outlined a proposal to cut £50 billion in welfare spending, a significant portion of which is tied to removing benefits from foreign nationals. The party claims this measure could yield approximately £20 billion in savings, primarily by barring non-UK citizens from accessing benefits such as Universal Credit (UC).
However, the feasibility of such a plan faces considerable challenges. More than one million individuals receiving UC were born outside the UK, including roughly 700,000 EU citizens who have resided in the UK since before Brexit and possess the right to live and work in the country. It is noted that around half of these EU citizens claiming UC are currently employed.
The government does not publicly release figures on the number of foreign nationals claiming benefits other than UC. Implementing a ban on these individuals accessing benefits could put the UK on a collision course with the European Union. Approximately 4.5 million EU citizens hold long-term settlement rights in the UK, granting them eligibility for benefits. Concurrently, an estimated one million UK citizens residing within the EU have similar rights. Removing these entitlements for EU citizens could prompt retaliatory measures from EU member states, potentially affecting Britons living abroad.
Reform has stated its intention to renegotiate the post-Brexit agreement that governs these rights. Such a renegotiation would involve reopening a process that was intended to be finalized in 2020. An additional complication arises if a substantial number of EU nationals decide to apply for UK citizenship, which would allow them to retain their existing benefit entitlements, thereby diminishing the projected savings.
Reform UK has also highlighted other potential savings. For instance, the party has suggested removing benefits from foreign nationals, which it estimates could save £20 billion. Another proposal involves ending the requirement for the UK to pay the state pension to people who have lived abroad for more than 26 weeks, a move projected to save £7 billion annually. The party also aims to save £10 billion by cutting the Universal Credit bill through measures such as ending benefits for people with more than £10,000 in savings and limiting payments for claimants with more than two children. The plan also includes reducing the welfare budget by £13 billion by tightening the criteria for Personal Independence Payments (PIPs) and ending the current system of awarding them for life for certain conditions. [IMAGE1: Two bar charts showing the number of PIP claimants in Reform-held constituencies and the majority at the last election and the same data for constituencies where Reform came a close second] [IMAGE3: Two bar charts showing the number of PIP claimants in Reform-held constituencies and the majority at the last election and the same data for constituencies where Reform came a close second]