Reform UK Proposes Major Welfare Restrictions for Foreign Nationals
By ldadmin
August 19, 2026
Reform UK has announced plans to significantly overhaul the UK welfare system, including proposals to restrict access to most benefits for foreign nationals if the party forms the next government.
Reform UK Welfare Reform Plans
The proposed policy would prevent many foreign nationals from accessing benefits such as Universal Credit, Housing Benefit, Pension Credit, Jobseeker’s Allowance, Child Benefit, free childcare and disability payments.
The proposals could also affect EU citizens with settled status in the UK. Because these individuals currently have rights secured under the UK-EU Withdrawal Agreement, implementing the policy could require renegotiation of parts of the UK’s post-Brexit arrangements with the European Union.
Reform UK’s economy spokesman, Robert Jenrick, argued that the welfare system needs to be reformed to ensure greater fairness for British taxpayers.
The party claims its wider welfare reforms could save approximately £50 billion annually, with the proposed restrictions on benefits for foreign nationals contributing around £21 billion in annual savings by the fifth year.
According to Reform UK, around one in six Universal Credit applicants is neither a British nor Irish citizen.
Proposed Welfare-to-Work Programme
Reform UK also plans to introduce a new “welfare to work” programme targeting people who have received benefits for more than 12 months and are considered fit to work.
Under the proposal, eligible claimants could be required to work up to 20 hours a week in their local communities.
Work could include cleaning high streets and parks, maintaining public spaces, carrying out minor repairs and helping improve libraries and community centres.
The party says people who refuse to participate or fail to meet programme requirements could face benefit sanctions, including reductions in their payments.
Jenrick said the system would continue to support people who genuinely need assistance while focusing on helping those who are capable of working return to employment.
Impact on Foreign Nationals
Reform UK says more than 1.5 million adults who are not British nationals could be receiving Universal Credit by 2029, while approximately 215,000 could be receiving Personal Independence Payment (PIP).
The party’s proposal would represent a significant change for foreign nationals who currently qualify for welfare support under UK law.
It could also affect hundreds of thousands of EU citizens who moved to Britain before Brexit and obtained settled status.
More than 700,000 EU nationals who arrived before Brexit were among the overseas-born population applying for Universal Credit, according to figures published in 2025.
Possible Impact on British Expats
The proposed changes could also create consequences for British citizens living elsewhere in Europe.
Reform UK has acknowledged that EU countries could respond by restricting welfare access for British nationals living abroad.
The party estimates that as many as £500 million could potentially be spent if British citizens returned from EU countries to the UK to access benefits.
Reform MP Danny Kruger said it was reasonable for countries to provide welfare assistance primarily to their own citizens.
He suggested that British citizens living abroad who qualify for disability support could potentially return to the UK or, following negotiations, continue receiving certain UK benefits while overseas.
Reform UK Disability Benefit Changes
The party has also pledged to overhaul the Personal Independence Payment system and introduce tougher assessments for disability-related benefits.
Reform UK argues that its approach would reduce long-term welfare spending while ensuring that people with genuine disabilities continue receiving support.
The Institute for Fiscal Studies, however, has raised concerns about the proposals. It said many of the projected savings would depend on a substantially tougher assessment of disability needs, while warning that insufficient details had been provided about how the new system would work.
The IFS also estimated that Reform’s proposal to use a lower measure of inflation when uprating benefits could save around £4.8 billion in 2033–34.
New Support for Employers
Another proposal would require businesses with more than five employees to purchase “return to work cover” insurance.
The insurance would help cover costs during the first two years after an employee is signed off sick. Reform UK says the policy is designed to encourage employers to make workplace adjustments and support employees in returning to work.
The party has compared the proposal with elements of the Dutch system and says employers’ National Insurance contributions could be reduced to offset the cost.
Political Reaction
The proposals have already attracted criticism from other political parties.
Labour accused Reform UK of potentially dragging Britain into another period of Brexit negotiations while reducing support for people who have legally lived and worked in the UK for many years.
The Conservatives said voters want welfare spending brought under control and abuse tackled, but argued that the focus should remain on supporting genuinely disabled people rather than reopening Brexit-related disputes.
The Liberal Democrats said improving the NHS and social care system would be a more effective way of reducing welfare spending.
The Green Party also criticised the proposals, accusing Reform UK of targeting vulnerable people rather than addressing wealth inequality.
What Could Happen Next?
Reform UK says its welfare proposals are designed to reduce government spending, increase employment and make the benefits system fairer for British taxpayers.
However, many of the proposals would require significant changes to existing laws and, in the case of EU citizens with settled status, could potentially involve negotiations with the European Union.
The plans are therefore likely to face substantial political, legal and practical challenges before they could become government policy.
For foreign nationals living in the UK, the proposals are significant but should not be interpreted as current changes to benefit eligibility. Any changes would depend on future legislation and government decisions.
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