Reform UK has unveiled plans to reduce Department for Work and Pensions (DWP) benefit payments by £50 billion annually, which could see 1.3 million non-UK citizens lose access to Universal Credit. The proposals advocate for a substantial reduction in disability payments, a ban on benefit claims from non-UK nationals, and the introduction of a compulsory 20-hour per week unpaid work programme for many long-term unemployed individuals.
Tom Waters, associate director at the Institute for Fiscal Studies (IFS), warned that removing benefits from non-UK citizens would lead to significant immediate reductions in income for many claimants, potentially increasing hardship. “Some of this group currently rely on benefits for most or all of their income,” he noted.
Labour has strongly criticised Reform UK’s proposals regarding foreign nationals' access to benefits, accusing the party of stripping support from millions of British residents. A Labour spokesperson stated: “These plans would breach the UK’s Withdrawal Agreement with the EU, potentially plunging the country into prolonged Brexit renegotiations. They risk removing vital support from millions who have lawfully lived, worked, and paid taxes in Britain for years, many with settled status contributing to their communities, raising families, and supporting the economy.”
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The spokesman added that the majority of migrants currently have no entitlement to welfare under existing regulations. Labour is also pursuing changes by extending the standard pathway to settlement from five to ten years and reforming the welfare system by narrowing the gap between standard Universal Credit and health-related rates, restoring face-to-face assessments, and investing £3.5 billion in employment support programmes to reverse Conservative policies that have seen many people alienated from work.
“Our approach centres on work and opportunity, with further reforms planned following the insights of the Milburn and Timms reports,” the spokesperson concluded.