In a bold move that could reshape the welfare landscape, Reform UK has unveiled plans to ban most benefit entitlements for foreign nationals, including EU citizens with settled status. The proposal, aimed at overhauling the existing benefits system, raises significant questions about the future of Britain’s relationship with the EU and the rights of long-term residents.
Major Changes Proposed
In a speech delivered on Monday, Reform UK’s economy spokesperson Robert Jenrick declared that the British taxpayer is “acting as the welfare state for the world” and that this situation is “unfair”. He emphasised the need for a fundamental shift to restore equity within the welfare system. The party claims that implementing these changes could save approximately £21 billion annually by the fifth year, a figure that Labour has contested, insisting that the majority of migrants currently do not access benefits.
Under the proposed changes, foreign nationals would be barred from a range of benefits, including housing support, pension credit, jobseeker’s allowance, child benefit, and disability payments. Only a few specific exemptions, such as war widows’ pensions and Armed Forces compensation, would remain.
Impact on EU Nationals
One of the most contentious aspects of Reform’s proposal is its potential impact on EU nationals who have settled in the UK. Currently, many of these individuals have indefinite rights to live, work, and study in the UK after residing here for five continuous years. The reform would necessitate a renegotiation of the UK’s existing Brexit deal with the EU, raising fears that British expatriates in Europe may lose reciprocal rights.
According to Reform UK, approximately 1.5 million adults who are not British citizens are expected to receive Universal Credit by 2029, with around 215,000 anticipated to claim Personal Independence Payment (PIP). Jenrick pointed out that one in six Universal Credit claimants are non-British or non-Irish citizens, suggesting that funds currently allocated to foreign claimants could be redirected to improve the lives of British citizens.
A New Welfare to Work Scheme
In addition to the proposed cuts, Reform UK has introduced a “welfare to work” scheme. This initiative would require individuals who have been on benefits for over a year to undertake 20 hours of community work each week, provided they are deemed fit to work. Local councils would oversee this programme, with non-compliance potentially resulting in benefit sanctions.
Jenrick elaborated on the community work aspect, stating that participants could engage in activities such as cleaning public spaces, maintaining libraries, and other community-enhancing tasks. This policy is seen as a way to incentivise participation and responsibility among benefit claimants.
Reactions from Political Rivals
The response from opposition parties has been swift and critical. Labour has condemned the proposals as an attempt to plunge the UK back into contentious Brexit negotiations while stripping vital support from those who have legally resided and contributed to the UK for many years. Shadow pensions secretary Helen Whately pointed out that the public is more concerned with controlling welfare spending and ensuring dignity for those with disabilities than with further Brexit disputes.
The Liberal Democrats prioritise the need to address the NHS and social care as a more effective means of reducing the benefits bill, while the Green Party has labelled the proposals as a “cowardly” approach to welfare reform that unfairly targets the most vulnerable in society.
Why it Matters
The proposed reforms from Reform UK could have far-reaching implications not only for foreign nationals living in the UK but also for the country’s welfare system as a whole. By excluding a significant portion of the population from benefits, the government risks exacerbating inequalities and sparking tensions with the EU regarding the rights of citizens. As the debate unfolds, the potential impact on social cohesion and the lives of those affected will be closely scrutinised, highlighting the complexities of welfare reform in a post-Brexit landscape.
