Reform UK has announced plans to ban foreign nationals from claiming Department for Work and Pensions (DWP) benefits, targeting a record 1.3 million migrants currently receiving Universal Credit (UC). The party, which intends to contest the next general election against the Labour Party government, says the measure would generate £5 billion in savings, according to Reform’s economy spokesman Robert Jenrick.
Record Number of Foreign Nationals on Universal Credit
Figures published by the DWP show that almost 1.3 million migrants were claiming Universal Credit in May 2026, roughly 20,000 higher than a year ago. This marks a new high for foreign nationals receiving benefits from the department, which Reform says justifies its proposal to ban such claims entirely.
Robert Jenrick, Reform’s economy spokesman, has stated that the party will ban foreign nationals from DWP benefits as part of a broader plan to achieve £5 billion in savings. The announcement comes as the party positions itself for the upcoming general election, aiming to challenge the Labour government led by Prime Minister Andy Burnham.
Expert Warnings on Hardship and Savings
Tom Waters, at the Institute for Fiscal Studies (IFS), has cautioned that removing benefits from non-UK citizens would lead to 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,” Waters said.
Waters also noted that the actual savings would depend on how many claimants respond by seeking 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.
Economic Context and Labour’s Fiscal Challenges
Ruth Gregory, of Capital Economics, has warned that Prime Minister Andy Burnham’s cost of living policies could cost tens of billions of pounds, increasing pressure on public finances. She previously cautioned that “this tax-raising Budget could be almost as big as the last,” and further warned that Labour Party Chancellor John Healey’s Budget on October 28 could increase both the size of the state and the tax burden.
Gregory’s warning comes amid Burnham’s promise to “get serious” over the DWP welfare bill. “With Labour MPs unlikely to stomach big spending cuts and the markets unlikely to tolerate big increases in borrowing, higher taxes perhaps worth up to 0.8pc of GDP may do the heavy lifting in funding Prime Minister Burnham’s policy ambitions,” she said. “We suspect most of the extra burden will fall on households.”
