The Department for Work and Pensions (DWP) faces pressure to enhance oversight of Universal Credit claims following a report that households including foreign nationals received a record £11.9 billion in benefits during 2025.
Data released by the DWP indicates that the value claimed by such households increased by a quarter between 2024 and 2025. The total Universal Credit paid to households with at least one foreign national rose from £9.5 billion in 2024 to £11.9 billion in 2025, up from £7.5 billion in 2023.
Approximately 16 per cent, or one in six, Universal Credit payments last year were made to households with at least one foreign national.
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Chris Philp, the Conservative Party’s shadow home secretary, described the figures as “shocking”. He stated: “British taxpayers should not be funding billions of pounds in benefits to foreigners, especially given that over half of these payments support people who are out of work. Paying benefits to unemployed foreigners disrespects the efforts of hard-working taxpayers.”
Philp also criticised potential policy changes, warning that if changes to indefinite leave to remain (ILR) rules were reversed, more low-wage and unemployed foreign nationals might become eligible for benefits. The Conservative Party advocates for restricting benefit claims to qualifying EU citizens and requiring foreign nationals who are unemployed or earning low wages to leave when their visas expire.
Robert Jenrick, treasury spokesman for the Reform party, linked the rising benefits bill to previous policy adjustments. “Boris Johnson’s reduction of the minimum salary threshold for migrants has contributed to this ballooning benefits bill,” he said. Jenrick warned that halting changes to ILR could result in a permanent increase in costs to taxpayers and argued that Reform’s approach, which includes abolishing ILR and ending all foreign nationals' access to benefits, is necessary.
Robert Bates, research director at the Centre for Migration Control, commented that the data challenges the view that mass legal migration benefits Britain’s economy. He described the influx of low-wage, low-skilled migrants as a fiscal burden likely to worsen if current settlement policies remain unchanged. Bates contended that Britain’s welfare system should prioritise British residents, calling for a reconsideration of indefinite leave to remain and the naturalisation process.
A government spokesperson highlighted recent policy efforts, stating: “Under this government, net migration has fallen by 82% from its 2023 peak. Only individuals legally present in the UK can claim taxpayer-funded benefits, and around half of them are employed. In November, we announced proposals to reform settlement that would extend the qualifying period to ten years for most migrants, with shorter periods for those who contribute significantly to the UK.”