Reform UK has published proposals that would remove Universal Credit from 1.3 million non-UK claimants as part of a wider plan to slash £50bn a year from the UK benefits bill. The party's announcement, made on Monday, also includes drastic reductions to disability payments, a ban on non-UK citizens claiming benefits, and compulsory 20 hours a week unpaid workfare for thousands of long-term unemployed people.
IFS warns of hardship
Tom Waters, an associate director at the Institute for Fiscal Studies (IFS), cautioned that the proposals could cause significant hardship. "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.
The plan targets a group that includes people with settled status who have lived and worked in the UK for years, often paying taxes and raising families. According to the source article, "the vast majority of migrants have no access to the welfare system at all under the existing rules."
Labour responds with criticism
Labour has strongly criticised the announcement, accusing Reform UK of "stripping support from millions" of Britons. A Labour spokesman said: "These plans would mean ripping up the UK's Withdrawal Agreement with the EU, plunging the UK back into years of Brexit renegotiations, and stripping support from potentially millions of people who have lawfully lived, worked, and paid taxes in Britain for years, and in many cases decades."
The spokesman added: "That includes people with settled status who are part of our communities, raising families, working, and contributing to our economy."
Labour's own welfare reforms
In response, Labour highlighted its own reforms to the welfare system. The party said it is already tightening rules through changes to earned settlement, including extending the standard pathway to settlement from five years to ten years. Additionally, Labour is "narrowing the gap between Universal Credit standard and health rates, restoring face-to-face assessments, and investing £3.5billion in employment support to end the Conservative system of people being signed off and written off."
According to the Labour spokesman, "We're putting work and opportunity at the heart of the system, with further reform to follow the Milburn and Timms reports."
The announcement comes as the government continues to face pressure over welfare spending, with the IFS and other experts warning of the potential impact on vulnerable claimants. The proposals, if implemented, would represent a major shift in UK benefits policy, affecting hundreds of thousands of people who currently rely on Universal Credit.
