PM wants fewer jobless foreign nationals on benefits as first-time data released

South Wales Guardian

15-07-2025

The number has risen by almost a fifth (17%) in a year, from 514,961 in May 2024 to 604,914 in May this year.
The figures, published by the Department for Work and Pensions on Tuesday, show the number of British and Irish nationals not in work and claiming universal credit (UC) has also risen over the same 12-month period.
There were 4.3 million people in the Common Travel Area category – made up of people who live or work in the UK without any immigration restrictions – on UC in May.
This rose from 3.5 million in May last year and was almost double the 2.8 million such claimants in May 2022, which is the earliest month for which data is available.
In total there were 7.9 million people on UC – a payment to help with living costs and available for people on low incomes or those who are out of work or cannot work – in June.
The vast majority – 6.6 million or (83.6%) – were British and Irish nationals and those who live or work in the UK without any immigration restrictions.
Just over a third (34% or 2.7 million) of all those on UC were in work as of May.
The figures showed that the total number of UC claimants who are refugees, have EU settled status, arrived under a humanitarian route or have either limited or indefinite leave to remain in the UK has risen year-on-year, from 1.1 million in June 2024 to 1.2 million last month.
The numbers in these categories on UC and out of work have also risen steadily over the past three years, with the Conservatives saying they have a 'clear, common-sense position' that the benefit 'should be reserved for UK citizens only'.
The Government said it had 'inherited a broken welfare system and spiralling, unsustainable benefits bill' and was working on reforms including tightening rules on who can claim.
The Prime Minister's spokesman said they will double the amount of time it takes to apply for settled status from five years to 10, limiting eligibility for the benefit.
Asked whether Sir Keir wants to see the number of foreign nationals claiming benefits while unemployed reduced, his official spokesman said: 'Absolutely, we both want to see the overall numbers of immigration reduced and we've set out plans for that through the Immigration White Paper.
'Within that, we also want to see people making a contribution to the UK, and that's why in the White Paper we set out that we will be doubling the amount of time it takes to apply for settled status.
'That actually means that typically you can only access universal credit after you've lived here currently for five years, and we're doubling that to a starting point of 10 years, so that will obviously reduce those numbers.'
The Department for Work and Pensions (DWP) said it had published the statistics 'following a public commitment to investigate and develop breakdowns of the UC caseload by the immigration status of foreign nationals in receipt of UC'.
People with EU Settlement Scheme settled status who have a right to reside in the UK were the second largest group on UC, accounting for 9.7% (770,379), while 2.7% (211,090) of the total had indefinite leave to remain in the UK.
Refugees accounted for 1.5% (118,749) of people on UC, while 0.7% (54,156) were people who had come by safe and legal humanitarian routes including under the Ukraine and Afghan resettlement schemes.
A total of 75,267 people, making up 1% of the total on UC, had limited leave to remain in the UK, covering those with temporary immigration status.
The rest – some 65,346 people – were either no longer receiving UC payments or had no immigration status recorded on digital systems, the DWP said.
People can access UC only if they have an immigration status that provides recourse to public funds.
Those with no recourse to public funds (NRPF) cannot claim most benefits, tax credits or housing assistance that are paid by the state.
Asylum seekers do not have access to UC as they have NRPF but those granted refugee status – deemed to have been forced to flee their country because of a well-founded fear of persecution, war or violence – can claim the benefit.
While refugees on UC had the lowest rate of employment at 22%, the department said those who have only recently been granted refugee status cannot be in employment at that point as asylum seekers are not permitted to work.
Independent MP Rupert Lowe, an ex-member of Reform UK, had welcomed the pledge to publish the data, describing it as a 'huge win' for those who had 'relentlessly pushed for this'.
He described the numbers as 'absolute insanity', posting on X: 'We cannot afford it. The country is BROKE.'
Shadow home secretary Chris Philp branded the figures 'staggering' and claimed they are 'clear proof that the Labour government has lost control of our welfare system'.
He said: 'Under Kemi Badenoch, we've set out a clear, common-sense position. Universal credit should be reserved for UK citizens only. This is about fairness, responsibility and protecting support for those who've contributed to this country.'
But the Government said the proportion of UC payments 'to foreign nationals has already fallen since last July'.
While the numbers of claimants who are refugees, have EU settled status, arrived under a humanitarian route or have either limited or indefinite leave to remain in the UK have risen year-on-year, the proportion has fallen.
These categories account for 15.6% of the total UC claimants in June, down from 16.5% a year earlier when the Conservatives were still in government.
The number of British and Irish nationals and those who live or work in the UK without any immigration restrictions – covering those in the Common Travel Area (CTA) – rose by almost a million from 5.6 million in June last year to 6.6 million last month.
The proportion also rose slightly from 82.5% to 83.6%.