Leading think tank estimates £23bn was spent on handouts, pensions and child-related support received by foreign nationals last year
The Centre for Social Justice has put the spotlight on foreign nationals claiming benefits (Image: Anadolu via Getty)
Nearly two million foreign nationals received benefits or the state pension last year at an estimated cost of £23billion, according to a new analysis calling for urgent reform to welfare and immigration. The Centre for Social Justice (CSJ) found approximately 1.85million non-British adults received at least one form of welfare support or the state pension in 2025. It warns this number is expected to top two million by 2030, with the total bill edging towards £27billion.
The Government says it does not “recognise” the figures and has cast doubt on the findings. But the influential think tank claims about 1.4million foreign nationals receive working-age benefits at a cost of approximately £14.3billion. This is alongside £2.9billion in pension-related payments and £5.8billion in benefits linked to children.
It states: “The number of foreign nationals on Universal Credit has increased by 38% since April 2022 alone, to 1.3million, including 745,000 covered by the EU settlement scheme and 537,000 migrants from outside the European Economic Area.”
The CSJ reports that “around 200,000 foreign nationals now receive disability benefits such as the Personal Independence Payment and the Disability Living Allowance”, with another 200,000 receiving sickness benefits. It estimates 400,000 foreign nationals receive the state pension, with around 76,000 getting Pension Credit.
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Former Conservative leader Sir Iain Duncan Smith, who founded the CSJ, said: “Britain’s immigration and welfare systems were founded on the expectation that those arriving here should be able to support themselves and their families. But at a time when families and businesses are being clobbered with yet more taxes, many will be deeply concerned at the extent to which governments have let unconstrained immigration drive up the welfare bill.
“We must urgently now restore contribution and reciprocity to the welfare system while helping the millions of Brits on out-of-work benefits back towards a better future for themselves and their families. We have done this before, we can do it again.”
Robert Jenrick: ‘If I went to live in Japan or India, I wouldn’t expect benefits’ (Image: Andy Rain/EPA/Shutterstock)
The CSJ has also claimed that since January 2020, “non-EU nationals accounted for 2.1million new payroll jobs, while payrolled jobs going to British nationals fell by 186,000”. It says the “out-of-work benefit caseload rose by 2.3million over the same period”. The think tank further warns that the “total working-age benefit bill is set to reach £136.1billion in 2026-27”.
Robert Jenrick – Nigel Farage’s choice to serve as chancellor in a Reform UK government – said: “This is an outrageous waste of taxpayers’ money. If I went to live in Japan or India, I wouldn’t expect benefits – and nor should migrants coming to the UK.
“How on earth can Andy Burnham justify this spending when he’s planning on putting up taxes even higher at the Budget? Reform will end all benefits for migrants so we can afford to raise the tax-free personal allowance to £15,000.”
A government spokesperson said: “We do not recognise these figures, which appear to be based on small-sample survey data, which is not robust enough to produce reliable estimates. Under this Government, net migration is down by 82% from its 2023 peak, and only people with eligible immigration status can claim taxpayer-funded benefits, of which around half of those claiming Universal Credit are in work.
“We have also set out proposals which will double the standard qualifying period to 10 years for most migrants, with shorter routes for those who contribute most to the UK.”
The Goverment argues the data sources used by the CSJ should be “treated with caution” due to small sample sizing. It claims the research draws on a mix of official data sources which were “not intended for this purpose”.
Shadow Work and Pensions Secretary Helen Whately (Image: Gary Roberts/SOPA Images/Shutterstock)
Shadow Work and Pensions Secretary Helen Whately said: “The welfare bill has spiralled out of control, with millions of people trapped on out-of-work benefits and taxpayers footing an ever-growing bill. This report exposes the scale of the problem facing Britain’s welfare system and the urgent need to restore fairness and contribution. The Conservatives will end access to benefits for foreign nationals, saving £9.5billion a year. Our welfare system should be there as a safety net for British citizens who have paid in, not a pull-factor for foreign nationals.”
Shadow Home Secretary Chris Philp added: “When immigration rises without proper control, the pressure on public services and the welfare system grows, and it is working people who are left to pick up the tab. Immigration and welfare policy cannot be treated in isolation.
“Britain must have a system that rewards contribution, not one that leaves taxpayers paying the price for Labour’s failure to control our borders.”
New driveway rule and ban under Andy Burnham this October
Andy Burnham has already overseen driveway rule changes this October, and more motoring updates are on their way.
Andy Burnham is overseeing new changes for EV owners (Image: Getty)
Andy Burnham will oversee two major motoring rule changes this October as part of drastic changes for electric car owners, although some road users will be banned from making savings. The Prime Minister has altered VAT rates on domestic electricity bills, slashing fees from 5% to 0% in a move that experts suggest could save EV owners with a driveway up to £40 per year. Labour’s updates don’t stop there, with new cross-pavement solution rules set to come into effect from October 21 in a boost for those without a driveway or off-street parking space.
Under the changes, Labour will allow homeowners and renters to install cable solutions, such as pavement gullies, to connect an EV charger from their house to their car. This previously required traditional planning permission, but the new updates will mean motorists won’t need this to take advantage of the savings.
This will ensure those without access to a driveway can still charge at the discounted 0% domestic rates, rather than the more expensive 20% VAT charged on public charging plugs. However, one set of road users will not be allowed to take advantage of the new cross-pavement solution due to a late legislative change.
The Government has decided that those living in conservation areas will not be allowed to make changes and will still require full planning permission. It is understood there are around 10,000 conservation areas around England alone, with the new rule set to affect as many as 3.5million people who don’t have a driveway.
A Government spokesperson told The Times: “We want to support households without off-street parking to access domestic electric vehicle charging, but it’s vital that we continue to protect the special character of our conservation areas.
“People in conservation areas without off-street parking can still apply for planning permission to install a cross-pavement solution. Local authorities also have powers to grant blanket permission for these installations in an entire area if they choose to.”
Labour is changing rules around EV charging (Image: Getty)
New cross-pavement solutions will see drivers install gullies under footpaths (Image: DfT)
Despite the changes, local highway authorities will still need to approve a cross-parking cable installation. This should take just a couple of weeks compared to several months under the previous planning permission requirement. Daniel Briggs, CEO at frontline worker car discount company Motorfinity, has warned this still risked a “postcode lottery”.
There is concern that some councils are likely to be quicker than others at approving works which could leave some EV owners plugging in at expensive public chargers for longer than they need.
He said: “Scrapping planning red tape is an overdue win for fair access to EV charging, making it easier for those wanting to make the switch from petrol to EV. That said, the bottleneck hasn’t entirely vanished. The decision has shifted parking planning permission approval to local highway authorities, which could create a postcode lottery of enforcement.”
