Record 1.3 million foreign nationals now receiving benefits

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EU citizens accounted for around half of overseas recipients as the total increased by approximately 20,000 in a year

Foreign nationals receiving Universal Credit reached a new record of nearly 1.3 million in May 2026, according to fresh data.

The figure represents a rise of approximately 20,000 compared with the same period last year.

EU citizens made up the largest share of overseas claimants, accounting for roughly half of all migrants drawing Britain's primary welfare payment.

Among the total, some 233,000 held indefinite leave to remain, a status typically granted after at least five years of living and working in the country.

The Department for Work and Pensions data landed just days after Reform UK unveiled plans to prohibit benefit claims by foreign nationals.

Once granted settled status or indefinite leave to remain, overseas nationals can currently access welfare on identical terms to British citizens. Asylum seekers become eligible upon receiving refugee status.

Robert Jenrick, serving as Reform UK's economy spokesman, set out a savings package worth £50billion as part of the party's proposed welfare overhaul.

The plan would strip EU citizens who hold settlement rights in Britain of their ability to claim benefits.

Implementing such a measure would force Nigel Farage to reopen negotiations on the UK's Brexit agreement, since existing arrangements guarantee certain rights to EU nationals with settled status.

The proposal forms part of a broader push by Reform to reshape the welfare system, with the party arguing that restricting access for foreign nationals is central to cutting public spending.

Reform has also factored in an estimated £500million bill to cover the possibility of British expats returning from the EU to claim benefits should Brussels choose to retaliate.

Tom Waters at the Institute for Fiscal Studies cautioned that such a policy would cause real pain for those affected.

"Removing benefits from non-UK citizens would mean large overnight cuts to claimants' incomes and imply significant increases in hardship some of this group get most or all of their income from benefits at present," he said.

Mr Waters acknowledged, however, that some migrants could respond by fast-tracking their applications for British citizenship.

"How much this saves would depend on how many of this group became citizens in response. Savings could be large if a Reform government followed through on making it hard for anyone who has previously claimed benefits to become a citizen," he added.

IFS analysis indicates that around half of foreign welfare recipients are currently employed.

The total number of Universal Credit claimants also reached an all-time high of 8.36 million, official data showed. Over half of those receiving the benefit have no obligation to search for employment.

Much of the recent growth stems from the ongoing transfer of people from older legacy benefits onto Universal Credit.

Nevertheless, the broader welfare bill continues to swell, with spending on sickness and disability benefits on track to surpass £100billion annually before the end of the decade.

Andy Burnham faces mounting pressure to contain these rising costs as the welfare budget expands across multiple fronts.

The combination of record foreign claimant numbers and a ballooning domestic caseload presents a significant fiscal challenge for the government at a time when public finances remain under strain.