1.3 million migrants in UK live off govt money: Why leaders want it stopped

Business Standard

3 days ago

Reform UK leader Nigel Farage wants the UK government to end all financial support for migrants, including Indians. In a video posted on X, formerly Twitter, he said, 'There are 1.3 million migrants in Britain on Universal Credit and over half of them don't do any work at all.'
What is Universal credit?
Universal Credit is a payment for people under State Pension age and on a low income or out of work. It includes support for the cost of housing, children and childcare, and financial support for people with disabilities, carers and people too ill to work.
'Immigration is not fine'
Farage's comments came after the UK government, for the first time, published data from the Department for Work and Pensions (DWP) on July 15, 2025, revealing the immigration status of those receiving Universal Credit. According to the figures, 1.3 million foreign nationals living in the UK are currently claiming the benefit.
'The latest data goes completely against the lie we've been told for 25 years that immigration is fine because everyone's working and everyone's contributing,' said Farage.
He claimed that supporting migrants on Universal Credit costs the UK £12 billion a year and argued that scrapping these benefits could help fund his party's economic plans.
Farage also criticised both major parties, saying: 'Some of this has happened since Labour came to power but nearly all of it happened during 14 years of Conservative government.'
What data shows as of June 2025
While the number of Indians receiving Universal Credit is not separately disclosed, many are likely represented within the EU Settlement Scheme and Indefinite Leave to Remain categories, which together cover a broad share of long-settled migrants.
Migrants make up about 1 in 6 Universal Credit recipients
Of the 7.9 million people on Universal Credit (UC) in June 2025, 16.4 per cent were not UK or Irish citizens. That's roughly 1.3 million people, who were on visas, had refugee status, or were covered under the EU Settlement Scheme.
This group includes:
EU Settlement Scheme: 9.7 per cent (770,000 people)
Indefinite Leave to Remain (not EUSS): 2.7 per cent
Refugees: 1.5 per cent
Limited Leave to Remain (e.g. family reunion): 1.0 per cent
Humanitarian protection schemes (Afghan, Ukraine): 0.7 per cent
Other/Unrecorded: 0.8 per cent
The remaining 83.6 per cent of UC recipients are UK or Irish nationals or have right of abode. Of these, 99.8 per cent are UK citizens.
Most EU citizens on UC are working
Among migrant groups, those under the EU Settlement Scheme had the highest employment rate — 47.1 per cent were in jobs. That compares to:
< 34 per cent overall employment rate across all UC recipients
< 33 per cent among UK/Irish nationals
< 22 per cent among refugees
This suggests many EU citizens are in work but on low pay, qualifying them for top-up support via UC.
Refugees and other protected groups form a small slice
Despite public focus, only 1.5 per cent of UC claimants were recognised refugees and 0.7 per cent were from humanitarian protection schemes. That's roughly 175,000 people in total.
Ethnicity mix shows some skew toward migrants
Ethnic minority groups, which include both migrants and UK-born minorities, make up just under a quarter of UC claimants:
White: 76.4 per cent
Asian/Asian British: 10.3 per cent
Black/African/Caribbean/Black British: 6.0 per cent
Other and Mixed ethnicities: 7.3 per cent
The Asian group saw a slight increase year-on-year, from 10.0 per cent to 10.3 per cent.
Who is not expected to work?
About 42 per cent of all UC recipients are categorised under 'no work requirements', which includes those too ill to work, carers, or older adults. This group has grown sharply in recent years, and many are former recipients of legacy health-related benefits like ESA.
Universal Credit and children
Among the 6.4 million UC households, half had dependent children. The average monthly UC payment in March 2025 was £1,010, but this varied by family type, with single adults without children receiving the lowest average (£740).
The release triggered sharp political responses from others too, urging a review of eligibility rules for non-citizens.
'These statistics demonstrate the extreme dysfunction of both the immigration system and Britain's welfare policies,' said Conservative MP Nick Timothy. 'Benefits should only be available to citizens and even then only to those who truly need the help. If that means many low-income migrants leave the country, that will be a good thing for us.'
The data also intensified pressure on the current Labour government. Chris Philp, Conservative Shadow Home Secretary, said: 'These are staggering figures and are clear proof that the Labour government has lost control of our welfare system.'
He added: 'We're calling on Keir Starmer to stop the drift and take action. British taxpayers should not be working hard to subsidise immigrants, many of whom have only recently arrived.'
Philp said the Conservatives, under Kemi Badenoch's leadership, supported restricting Universal Credit access to citizens only. 'This is about fairness, responsibility and protecting support for those who've contributed to this country,' he said.
UK immigration White Paper proposes tougher rules for workers, students and asylum seekers
The release of Universal Credit figures in July follows the UK government's immigration White Paper, published in June, which sets out a series of proposals to reduce overall migration numbers and cut down the use of public resources by asylum seekers and temporary migrants.
The paper outlines changes across work, study and settlement routes and is part of a broader push to overhaul the current system. Ministers say the reforms are intended to 'rebalance' migration and restore public trust in the immigration system.
The proposals include:
* Doubling the qualifying period for settlement (indefinite leave to remain) from five to ten years
* Extending English language requirements to cover a wider group of applicants, including dependants
* Cutting the Graduate Route post-study visa from two years to 18 months
* Raising salary thresholds for skilled worker visas
* Ending the Health and Care Worker visa for new applicants, while introducing new sponsorship obligations for employers in the sector
The White Paper also calls for stricter controls on asylum applications, including new triage and fast-track procedures for claimants from countries deemed to be generally safe.
According to officials, the government is examining the possibility of housing asylum seekers in offshore processing centres or repurposed facilities as part of efforts to reduce the cost of hotel accommodation. The Home Office has said the current approach is unsustainable and that too many asylum seekers are being granted access to public funds before decisions are made on their status.