Universal credit data reveals surge in non UK claimants and new welfare pressures

Fresh figures have revealed that over one million foreign citizens are now receiving universal credit in Britain, highlighting intensified debates on the future of the welfare system and the effectiveness of current policies. With a total of 7.9 million individuals now claiming universal credit, the details show that 3.6 million have no requirement to look for work, while the remainder consists of 2.2 million in employment, 1.6 million job seekers, and half a million preparing for work.

Of particular note, 16 per cent of all claimants are not British citizens. The largest share comprises EU nationals with settled status since Brexit, accounting for almost 10 per cent of claimants and numbering over a quarter of a million. More than 200000 other recipients have indefinite leave to remain, in addition to more than 100000 refugees. Altogether, the tally reaches 1.26 million claimants under non UK immigration status, including 1.06 million with overseas nationality.

This proportion of non British claimants has triggered strong political responses. The shadow home secretary argued for a ban on foreign citizens claiming universal credit, calling for support to be reserved for UK nationals. By contrast, data indicate that 41 per cent of non British claimants are employed, compared with 34 per cent of all claimants. Experts suggest this is due to immigrant claimants typically being of working age and participating actively in the labour market.

The Resolution Foundation highlighted the complexity of excluding non citizens who contribute through work and tax. There are already strict requirements for eligibility based on immigration status, and only those with legal status and the right to work can claim benefits. Those in the UK illegally are ineligible for universal credit. Tightening of rules has been proposed, including extending the qualifying period for benefits once legal status is secured.

A notable increase in the number exempt from work search requirements has accompanied a rise in long term sickness, as more claimants transfer from legacy benefits. Analysts point out that the system, originally designed for the unemployed, now faces the dual challenges of an expanding sick and disabled cohort and political disagreement over the direction of reform. Ministers have committed to halving the incapacity element for new claimants, whilst increasing the standard rate, with the aim of incentivising work while balancing support for those in genuine need.

Whether proposed reforms will deliver a sustainable and fair welfare system remains a matter of significant political and financial debate, set against a backdrop of rising claimant numbers and an evolving labour market in post Brexit Britain.