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Record £12 billion in Universal Credit Claims by Households with Foreign Nationals Fuels Political Debate

By Drooid · · How we work

Record Universal Credit Payments to Foreign-National Households

Department for Work and Pensions (DWP) data obtained through freedom-of-information requests by the Centre for Migration Control show that households containing at least one foreign national claimed roughly £11.9 billion in universal credit during 2025. This represents a 25 percent increase from the £9.5 billion paid out in 2024 and follows a rise from £7.5 billion the year before. The Centre’s analysis indicates that about one in six universal credit payments—15.6 percent of the total—went to such households. Of the £11.9 billion, approximately £7.7 billion (65 percent) was paid to claimants who were out of work; the remainder was split among households with foreign nationals from the European Economic Area.

Proposed Asylum and Settlement Reforms

Home Secretary Shabana Mahmood has announced a set of asylum reforms that would double the qualifying period for indefinite leave to remain from five to ten years for most migrants, with a longer 15-year wait for foreign care workers. The proposals also aim to tighten settlement routes for those who do not meet the contribution threshold.

Official Government Position

A government spokesperson reiterated that only individuals with legal status in the UK are eligible for taxpayer-funded benefits, noting that roughly half of universal credit claimants are employed. The spokesperson also highlighted that net migration has fallen by 82 percent from its 2023 peak under the current administration.

Opposition and Criticism

Shadow Home Secretary Chris Philp described the universal credit figures as “shocking,” arguing that British taxpayers should not be funding billions in benefits for foreigners, especially when many recipients are unemployed. Treasury spokesman Robert Jenrick warned that if the indefinite-leave reforms are implemented, the “Boriswave” of migration could become permanent and cost taxpayers tens of billions more. Robert Bates, research director at the Centre for Migration Control, labeled the situation a “fiscal disaster” and said the numbers undermine claims that mass legal migration benefits the UK economy.

Summary of Key Statistics

  • £11.9 billion in universal credit claimed by households with foreign nationals (2025).
  • 25 percent increase over the previous year.
  • 15.6 percent of all universal credit payments went to these households.
  • £7.7 billion (65 percent) paid to claimants out of work.