Reform UK would bar most foreign nationals from welfare, costing £21bn a year

Reform UK has proposed banning most foreign nationals, including EU settled-status holders, from almost all welfare payments in the UK, the party announced ahead of a welfare speech by its shadow chancellor Robert Jenrick. The plan, the party says, would save £21bn by its fifth year and would require renegotiating parts of the Brexit agreement with the EU.

The proposal targets benefits such as housing benefit, pension credit, jobseeker’s allowance, child benefit, free childcare and disability payments, with a small number of exemptions including the war widows pension and Armed Forces compensation. Reform also said it would replace the Personal Independence Payment (PIP) system if it entered government.

Reform acknowledged a potential cost of about £500m for British expatriates who might return from the EU to claim benefits if Brussels retaliated. The party said it spent six months preparing a 50-page plan that it claims could save a total of £50bn a year.

Liberal News Analysis: What Does This Development Mean?

The proposal would affect EU nationals with settled status, who typically have indefinite rights to live and work in the UK after five years’ continuous residence. Implementing the ban would therefore touch on obligations established under the UK–EU post‑Brexit arrangements, which Reform says would need renegotiation.

Politically, Labour warned the plans would force renewed Brexit negotiations and remove support from people who have lawfully lived and paid taxes in Britain for years, while Conservatives and other parties criticized the measures on different grounds.

Quick Glance: What You Need to Know

• Reform UK proposes banning most foreign nationals, including EU settled-status holders, from nearly all welfare payments in the UK.
• The party claims the policy would save £21bn a year by year five and up to £50bn annually according to its broader plan.
• Exemptions would be limited; implementation could require renegotiating the UK’s Brexit deal and might cost about £500m if British expats return to claim benefits.