Farage Immigration Benefit Cut Plan Faces Criticism Over EU Exemption and Economic Risks

Reform UK’s ambitious commitment to slash £234 billion from Britain’s benefits bill by stopping foreign nationals from accessing welfare has been met with significant scepticism within political and economic circles. Nigel Farage, leader of Reform UK, unveiled sweeping proposals to scrap “indefinite leave to remain” and move all incoming workers onto new visas with a substantially raised salary threshold. However, fresh details of a carve-out for millions of EU citizens have complicated the picture, casting doubt on the full impact of the planned cuts.

The core of Farage’s reform hinges on halting “endless cheap foreign labour”, forcing most migrants to apply for work visas tied to a higher annual income requirement—rising from £41,700 to approximately £60,000. According to Farage, those ineligible for the new scheme would face deportation if they refuse to depart the UK once their leave expires. Nevertheless, an initial exemption would be made for 4.2 million EU nationals who hold “settled status”, limiting the policy’s immediate application to 431,000 non-EU migrants with indefinite leave to remain.

Official figures illustrate the scale of the challenge. Nearly 10 per cent of universal credit claimants in the UK are EU citizens with settled status, while just under 3 per cent are non-EU citizens with indefinite leave to remain. Reform UK proposes future negotiations with Brussels aiming to cut welfare eligibility for EU residents, but European diplomats have rejected the prospect, reminding all parties that such a move would breach post-Brexit treaty obligations.

Labour has labelled the £234 billion savings estimate unfounded and “falling apart in real time”, as it is derived from an outdated think tank report. The Centre for Policy Studies itself has advised that the underlying estimates have been revised and “should no longer be used”. Despite the criticisms, Farage insists even greater savings might be possible and maintains that the overhaul would include all nationalities, even those from Ukraine or Hong Kong, if not covered by new visa rules.

Sector analysts warn about a looming labour shortage and the risk of damaging economic growth. Business groups stress that UK employers typically recruit internationally when domestic skills are unavailable. According to the Institute of Directors and the British Chambers of Commerce, three-quarters of their members already struggle to fill vacancies, and such immigration restrictions would intensify recruitment difficulties for vital roles.

The healthcare sector is particularly vulnerable. Healthcare leaders stress that withdrawing indefinite leave to remain from migrant workers would have a “major impact” on NHS services. Many foreign healthcare staff pay taxes and contribute substantially, and sudden withdrawal of working rights would threaten basic service provision.

While Reform UK pushes ahead with its vision for a tougher immigration and welfare regime, critics argue that it risks breaching legal agreements and undermining economic stability. Expert consensus suggests that without comprehensive labour market reforms and improved domestic skills training, such drastic restrictions may prove not only unworkable but potentially damaging to the UK’s international reputation and its economic health.