Migrant households in Britain now receive nearly £1 billion monthly in Universal Credit benefits, double what they claimed just three years ago as post-Brexit migration policies trigger massive welfare spending increases.
At a Glance
- Universal Credit payments to households with at least one foreign national have doubled to nearly £1 billion monthly, up from £461 million in March 2022
- The surge coincides with record-high net migration, which reached over 900,000 in 2023
- Migrants become eligible for benefits once they receive indefinite leave to remain or refugee status
- Total taxpayer burden extends beyond Universal Credit to include healthcare, education, and housing costs
- Labour government faces internal divisions over proposed welfare cuts while migrant benefit costs soar
Skyrocketing Costs to Taxpayers
The financial burden of providing welfare benefits to migrant households has reached unprecedented levels. In March 2023, households with at least one foreign national received £941 million in Universal Credit payments, representing a dramatic increase from £461 million just one year earlier. This marks a 30% jump from £726 million in the previous reporting period. These households now account for approximately 15.5% of all Universal Credit disbursements in Britain, creating significant strain on the welfare system during a period of fiscal challenges.
The surge in benefit claims directly correlates with the significant increase in net migration, which hit a record high of over 900,000 in 2023. This influx follows post-Brexit migration policies implemented under Boris Johnson’s government. Foreign nationals become eligible for Universal Credit and other benefits once they secure indefinite leave to remain in the UK or receive refugee status, typically after residing in the country for five to ten years. Many migrants who arrived during recent high-immigration periods will reach eligibility during the current Parliament.
This has nothing to do with channel migrants. Even the article makes clear they do not get these benefits. In fact, it's not even all foreigners. Article says it is counting everyone who lives with at least a foreign born person. So, it also includes born and bred Brits. https://t.co/rsfQvUslsL
— Phil (@Philmoorhouse76) May 31, 2025
Additional Burdens Beyond Universal Credit
The nearly £1 billion monthly Universal Credit expenditure represents only a portion of the total cost to British taxpayers for supporting migrant populations. Additional expenses include healthcare, education, and housing provisions. A recent study revealed that housing asylum seekers alone costs approximately £4.7 billion annually. Migrants in the UK for five to ten years generally gain access to a comprehensive range of welfare entitlements, including healthcare services after paying the current £1,035 healthcare fee required for those on work visas.
“The growth of benefit spending and the rate of migration are both much too fast, and the Government is doing far too little to change either trend,” said Neil O’Brien.
Critics argue that the current system prioritizes foreign claimants over British citizens, particularly as the government considers cuts to Personal Independence Payments and winter fuel allowances for elderly Britons. This disparity has fueled growing public concern about the fairness of benefit distribution, especially during times of economic austerity when many British citizens face financial hardship and potential reductions in their own benefit entitlements.
I’ll probably be arrested for writing this.
Is it any wonder that people feel utterly powerless right now? Everywhere you look, the hard-working taxpayer, the pensioner, the farmer, and the struggling family are being shafted while illegal migrants and virtue-signalling… pic.twitter.com/Y0ESmYqETp
— Darren Grimes (@darrengrimes_) November 27, 2024
Political Tensions and Proposed Solutions
Sir Keir Starmer’s Labour government faces significant political pressure over its handling of both immigration and austerity measures. Angela Rayner, in a leaked memo, suggested implementing restrictions on benefits for migrants, including a proposal to raise the NHS fee for migrants. Other proposed policy changes include making it more difficult for immigrants to receive Universal Credit and limiting access to state pensions, which currently become partially available after ten years of National Insurance contributions.
“Given the state of the country’s finances, everything has to be looked at and reassessed. This expenditure on foreign claimants in my opinion is not a priority. We have to be absolutely clear on what our priorities are and in my view these people are not a priority. It has to be judged against potential cuts in PIPs [Personal Independence Payments] and the winter fuel allowance and other benefits that may be cut for British citizens,” said Graham Stringer.
The government maintains that it has made progress in addressing the issue, with a spokesman stating: “We inherited a spiraling benefits system that was out of control. Since last July, we have reduced the proportion of benefit payments to nationals outside the British Isles.” However, critics point to Britain’s continued participation in the European Convention on Human Rights as a significant obstacle to effectively controlling illegal migration and associated welfare costs, as the convention limits the government’s ability to implement stricter deterrent measures.
