Migrant households receive record £12bn in universal credit

Households with foreign nationals received a record £11.9bn in universal credit payments last year, with over half going to jobless claimants, according to official government figures. The data has intensified political pressure over welfare spending and migration settlement rights.

Official figures from the Department for Work and Pensions show that the amount of universal credit claimed by households with at least one foreign national rose by a quarter between 2024 and 2025. The total reached £11.9bn, up from £9.5bn in 2024 and £7.5bn in 2023, according to data obtained by the Centre for Migration Control under freedom of information laws.

The figures reveal that around one in six of all universal credit payments over the past year were issued to households with at least one foreign national. Furthermore, 65 per cent of these payments, equating to £7.7bn, went to jobless claimants.

Political fallout and reform debates

The release of the data coincides with debates over whether to water down proposals by Home Secretary Shabana Mahmood to limit settlement rights by delaying the right to claim indefinite leave to remain from five to 10 years. Critics argue that allowing low-wage and unemployed migrants to access benefits places an unsustainable burden on public finances.

These are shocking figures. British taxpayers should not be paying billions in benefits to foreigners, especially given that over half of these payments are for people out of work.

— Chris Philp, Shadow Home Secretary

Shadow home secretary Chris Philp strongly criticized the figures, describing payments to unemployed individuals as an insult to hard-working taxpayers. Reform’s treasury spokesman Robert Jenrick similarly argued that previous reductions in minimum-salary requirements had caused a ballooning benefits bill.

• Foreign households received £11.9bn in universal credit in 2025.
• Around 65 per cent (£7.7bn) went to jobless claimants.
• Payments represent roughly one in six of all universal credit claims.
• Proposals are under consideration to extend settlement qualifying periods to 10 years.

A government spokesperson defended the current framework, emphasizing that net migration is down by 82 per cent from its 2023 peak and that only individuals with legal status and recourse to public funds can access taxpayer-funded benefits. Discussions regarding settlement reforms and welfare access continue as ministers weigh backbench pressure.

Original source: Read the full report at The Telegraph