Reform Proposes Benefits Ban for Foreign Nationals in the UK

Key Points

• Reform UK has suggested that the vast majority of foreign nationals will not be able to receive benefits if it gains power at the next election.
• It would reportedly involve EU citizens with settled status, which could mean the UK has to renegotiate its deal with the EU after Brexit.
• Reform estimates the savings will be £21 billion a year by the fifth year of the policy.
• The party says that the broader welfare programme it offers could save the government £50bn annually.
• The measures suggested would apply to benefits such as Universal Credit, housing benefit, pension credit, Jobseeker’s Allowance, child benefit, free childcare and disability payments.
• Welfare support should not be paid for by British taxpayers for those who have not paid into the British system, said Reform’s Robert Jenrick.
• Reform says it took six months to create its broader welfare plan, which was laid out in a 50-page policy document.
• Some of those claiming benefits for over a year would be forced to undertake 20 hours of community work a week under a proposed ‘welfare to work’ scheme.
• The party’s plans would mean that those deemed fit to work, but who refused or did a poor job of work, would be liable to benefit sanctions.
• If the EU governments retaliate by limiting welfare rights for British expatriates, then British citizens in the EU may be impacted by Reform’s plans.
• If British citizens return to the UK to claim benefits, as many as £500m may be required, Reform has estimated.
• Labour argued that bringing the policy into effect could lead to years of Brexit talks and take away support for those who have come to Britain legally to work.
• The Conservatives, Liberal Democrats and Greens also raised issues with parts of the plans.
• The Greens connected their criticism to the £5,000 that was donated to Reform leader Nigel Farage, which is being investigated by the parliamentary standards watchdog.

London (Britain Today News) August 17, 2026: Reform UK has proposed preventing most foreign nationals from receiving welfare payments in Britain, including EU citizens with settled status, under a wide-ranging benefits overhaul that the party says could save £21 billion a year by its fifth year.

The proposal, presented as part of Reform’s broader welfare strategy, would affect several major benefits and public support schemes. The restrictions would include housing benefit, pension credit, Jobseeker’s Allowance, child benefit, free childcare and disability payments. Only limited exemptions would apply, including the war widows pension and Armed Forces compensation.

The policy would represent a significant change to the rights of many people who have lawfully lived, worked and paid taxes in the UK. EU nationals with settled status currently have an indefinite right to live, work and study in Britain. Many obtained that status after living in the country continuously for at least five years.

Reform’s proposal would therefore have implications beyond domestic welfare policy. It could require the UK to reopen aspects of its Brexit agreement with the European Union, while also placing the welfare rights of British citizens living in EU member states at risk of reciprocal restrictions. The BBC reported that Reform has acknowledged a potential cost of £500 million if British expatriates returned to the UK to claim benefits following retaliatory action by European governments.

How much could the plan save?

Reform UK claims its proposed restrictions on foreign nationals could generate savings of £21 billion annually by the fifth year of implementation. The figure forms part of a wider package that the party says would save £50 billion a year from the welfare budget.

Robert Jenrick, Reform’s economy spokesman, is due to set out the party’s welfare proposals in a speech. The party says it has spent six months preparing a 50-page plan aimed at changing the way benefits are administered and reducing the number of people receiving long-term support.

The savings estimate has not been accepted by Reform’s political opponents. Labour has argued that the “vast majority” of migrants do not have access to benefits, while the Conservatives have described the proposals as “cobbled together”.

The scale of the expected savings is particularly important because welfare spending is already one of the largest areas of government expenditure. The government expects to spend about £322 billion on welfare in Great Britain this year, equivalent to 10.6% of gross domestic product. More than half of that sum is expected to go to pensioners.

Reform says reducing access for foreign nationals, changing disability support and introducing stronger work requirements would collectively reduce the cost of the system.

What did Robert Jenrick say?

Jenrick argued that the current welfare system placed an unfair burden on British taxpayers. He said:

“The British taxpayer is acting as the welfare state for the world. That’s unfair, we all know it.”

Jenrick also said the party wanted to “restore fairness” to the welfare system. He claimed that one in six Universal Credit claimants was not a British or Irish citizen and suggested that money currently spent on those claims should instead be used to improve the lives of British people.

Jenrick said:

“For British workers, paying for benefits of is not just economically illiterate but plain immoral.”

The wording in the published report appears incomplete, but the central argument was that British taxpayers should not be required to finance welfare support for people who had not made a sufficient contribution to the country.

Reform has framed the proposal as a question of national responsibility. Its position is that welfare should primarily be funded by, and reserved for, the citizens of the country providing the payments.

Critics, however, are likely to challenge the assumption that nationality alone should determine eligibility. Many foreign nationals affected by the proposal have worked in Britain, paid taxes and contributed to public services for years.

Who would be affected by the policy?

The proposal would affect foreign nationals living in Britain who currently qualify for one or more benefits. Reform has claimed that by 2029, approximately 1.5 million adults who are not British citizens could be receiving Universal Credit, while about 215,000 could be receiving Personal Independence Payment, commonly known as PIP.

The party had previously said it would prevent foreign nationals from claiming Universal Credit. Its latest plan would go substantially further by extending restrictions to a wider range of welfare payments.

The affected benefits could include:

• Universal Credit.
• Housing benefit.
• Pension credit.
• Jobseeker’s Allowance.
• Child benefit.
• Free childcare.
• Disability benefits.
• Other forms of means-tested support.

The proposals would also cover EU nationals with settled status. This group includes people who arrived in Britain before Brexit and who have been granted the right to remain indefinitely.

The inclusion of settled-status holders is among the most politically sensitive parts of the plan. Their rights were protected under the UK’s withdrawal agreement with the EU, which was negotiated by the previous Conservative government.

Reform’s policy could therefore create a legal and diplomatic dispute with Brussels. Any attempt to remove or limit those rights would likely require negotiations over existing commitments.

Why is settled status important?

Settled status was introduced to protect EU citizens and their families who were living in the UK before the end of the Brexit transition arrangements. It generally allows eligible individuals to remain in Britain indefinitely, work, study and access services according to the conditions attached to their status.

Many people with settled status have established their lives in the UK. They may own homes, raise families, run businesses or work in sectors such as health, social care, hospitality, construction and transport.

Reform’s proposal would seek to restrict welfare access even for people who hold that legal status. This is why the plan could not be implemented simply through a domestic change to benefit rules.

The BBC reported that renegotiating the Brexit agreement could also affect British citizens living in EU countries. If European governments adopted a reciprocal position, British expatriates might no longer be able to claim equivalent benefits abroad.

The issue is particularly significant for British people receiving disability support while living in the EU. Danny Kruger, a Reform MP, said the principle that a person’s country of citizenship should pay for their welfare was reasonable.

What did Danny Kruger say about British expatriates?

Kruger defended the principle behind the proposal. He said:

“So I’d understand if the Europeans decided to apply the same principle that we are and to deny our nationals access to their welfare system and we will pay for that ourselves.”

Kruger was also asked what would happen to British citizens living abroad who receive disability benefits. He said they would have two possible options.

“They would have two options – they can either return to the UK, they might wish to do that if the benefits system is preferable for them, but we’re open to a negotiation that it might mean that we could pay British disability benefits to them, if they qualify under our new scheme,”

He said.

Reform has included a possible £500 million cost in its calculations for British expatriates returning to the UK if EU countries retaliate. The estimate reflects the party’s expectation that the proposal could have consequences beyond the people currently claiming benefits in Britain.

The plan would therefore create both financial and diplomatic risks. Reform argues that the potential costs would be outweighed by the savings generated through restricting welfare access to foreign nationals.

What is Reform’s welfare-to-work proposal?

Reform’s welfare strategy would also introduce a “welfare to work” scheme for some people who have claimed benefits for more than 12 months.

Under the proposal, people judged fit to work would be required to complete 20 hours of community work each week. Local councils would organise the placements and could assign tasks in public spaces and community facilities.

Jenrick said participants could help clean up high streets and parks, improve neglected areas, carry out minor repairs and support libraries and community centres.

“They’ll work to clean up high streets and parks, to beautify neglected places, to carry out minor repairs to staff libraries and community centres, to perform many other tasks from the list that we’ve published today,”

He said.

People who failed to take part or performed poorly could face sanctions, including reductions in their benefit payments. The policy document reportedly states that sanctions would be used to enforce participation.

Reform says the scheme would encourage people who are capable of working to re-enter the labour market. Opponents may argue that compulsory community work could place additional pressure on people with health conditions, caring responsibilities or other barriers to employment.

How would the disability benefits system change?

The foreign-national restrictions form part of a wider Reform plan to change disability support. On the Saturday before Jenrick’s speech, the party said it would replace the existing Personal Independence Payment system if it entered government after the next general election.

PIP is designed to support people who face additional costs because of a long-term illness or disability. Reform’s proposal would replace the current system as part of a broader effort to reduce welfare spending.

The party says around 215,000 non-British citizens could be receiving PIP by 2029. Under the proposed restrictions, most foreign nationals would no longer qualify for disability payments.

Reform has not presented the plan simply as an immigration policy. It has linked the proposals to its wider argument that the welfare system has become too expensive and that access rules need to be tightened.

The party also proposes requiring larger employers to purchase “return to work cover” insurance. Businesses with more than five employees would pay for cover designed to support the cost of the first two years after an employee is signed off sick.

Reform says the measure is modelled on the Dutch system. It argues that employers would have a stronger incentive to make workplace adjustments and help employees return to work, while fewer people would enter the disability benefits system.

The party has also said it would reduce employers’ National Insurance contributions to offset the cost of the insurance. Jenrick said:

“Nothing that we’ve outlined today will adversely affect businesses.”

How have Labour and the Conservatives responded?

Labour has accused Reform of risking a fresh confrontation with the European Union. The party said the proposal would plunge the UK into years of Brexit renegotiations and remove support from potentially millions of people who had legally lived, worked and paid taxes in Britain for many years.

Labour’s criticism focuses both on the practical impact of the policy and its effect on the UK’s international obligations. The party argues that many people who could lose support are established members of British communities rather than recent arrivals.

The Conservatives also criticised Reform’s approach. Helen Whately, the Conservative shadow pensions secretary, said British people wanted welfare spending brought under control and abuse tackled.

However, she argued that voters also wanted dignity and protection for people with serious disabilities. She said the country should focus on welfare reform rather than becoming involved in disputes over Brexit.

The Conservative response reflects the party’s attempt to support tighter control of welfare spending while distancing itself from a policy that could reopen the withdrawal agreement.
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What did the Liberal Democrats and Greens say?

The Liberal Democrats said the government should focus on the NHS and social care if it wanted to reduce the benefits bill. The party’s position is that better access to healthcare and social-care services could prevent people from becoming dependent on welfare for long periods.

The Greens strongly criticised Reform’s proposals. They described the plans as “cowardly” because, in their view, they would take support from some of the most vulnerable people in society.

The party said the government should instead raise more money by taxing the super-wealthy. Its criticism referred to the £5 million donation received by Reform leader Nigel Farage before he became an MP.

That donation is being investigated by the parliamentary standards watchdog. The Greens used the issue to question whether Reform’s approach to welfare was consistent with its wider position on wealth and political donations.

Reform has defended its welfare plans as necessary to control public spending. Its opponents say the proposals would unfairly target migrants and disabled people while creating uncertainty for British citizens living overseas.

Could the plan trigger a new Brexit dispute?

The proposed benefits ban could become a major issue in the UK’s relationship with the European Union. Because the plan would apply to EU citizens with settled status, it could conflict with rights guaranteed under the withdrawal agreement.

Any attempt to change those rights would require discussions with EU governments. The negotiations could be complex because welfare access is connected to residency rights, legal protections and the treatment of British citizens living in Europe.

The possibility of reciprocal restrictions also raises questions for British expatriates. People living in EU countries could face reduced access to local welfare payments, while some might decide to return to Britain.

Reform has included the possible £500 million cost of returning British expatriates in its calculations. The party maintains that the wider savings would still make the plan worthwhile.

Labour has warned that the policy could lead to years of negotiations. The party says Britain should not jeopardise legally protected rights without clear evidence that the financial benefits would outweigh the diplomatic and social consequences.

What happens next for Reform’s proposal?

Reform UK’s plan is a political proposal rather than government policy. It would need to be incorporated into the party’s election platform, examined by Parliament and tested against domestic and international legal commitments if Reform formed a government.

The party would also need to provide detailed costings and explain how benefit eligibility would be determined. Questions would include how nationality would be verified, how settled-status holders would be treated and whether exemptions would be available for people with long employment or tax records in Britain.

The proposal would also need to clarify how councils would administer the welfare-to-work scheme and how sanctions would operate. Employers would require further information about the proposed return-to-work insurance, including premiums, eligibility rules and the responsibilities of companies.

For now, the announcement has placed Reform’s welfare policy at the centre of the political debate. The party presents it as a plan to restore fairness and reduce public spending, while Labour, the Conservatives, the Liberal Democrats and the Greens have warned of legal, economic and humanitarian consequences.

The central dispute is whether welfare access should be based primarily on British citizenship or on lawful residence, employment and contribution to the UK system. Reform says its proposals would protect taxpayers and reduce costs; its opponents say they could punish people who have already built their lives in Britain.