Foreign National Benefit Payments Hit Record £11.9 Billion
Households with foreign nationals received a record £11.9 billion in Universal Credit last year, sparking a political dispute over immigration settlement rules.
Households containing at least one foreign national received a record £11.9 billion in Universal Credit payments last year, according to Department for Work and Pensions data. The figure represents a 25% increase from the £9.5 billion recorded in 2024. Approximately 65% of the total, or £7.7 billion, was paid to foreign nationals classified as jobless, with these households accounting for 15.6% of all Universal Credit payments.
Chris Philp, the Shadow Home Secretary, described the figures as "shocking" and called the payments to unemployed foreigners an "insult to hard-working taxpayers." He argued that British taxpayers should not be paying billions in benefits to foreigners, particularly those out of work.
In response to the data, Home Secretary Shabana Mahmood proposed doubling the qualifying period for indefinite leave to remain from five to 10 years. The Government defended its position, stating that only those legally entitled to benefits can claim them and highlighting an 82% decrease in net migration from its 2023 peak. Meanwhile, Prime Minister Andy Burnham faces pressure from Labour MPs to soften these proposed settlement reforms for care workers.