There was a significant increase from £7.5billion the previous year, Department for Work and Pensions (DWP) data, secured through freedom of information requests by the Centre for Migration Control, show.

The figures show that roughly one in six universal credit payments — 15.6 per cent of the total — went to such households over the past year.

Of the £11.9billion total, some £7.7billion — equivalent to 65 per cent — was directed to claimants who were out of work.

The remaining claims were split across households where at least one foreign national was from inside the European Economic Area.

The Home Secretary, Shabana Mahmood, has attracted backlash from her own party after announcing a sweeping set of asylum reforms.

As part of those plans, she has put forward plans to double the qualifying period for indefinite leave to remain from five to 20 years, with an even longer 15-year wait imposed on foreign care workers.

Since coming to power, rebel MPs have pleaded with Mr Burnham to water down the proposals.

Up in arms over the latest findings, Shadow Home Secretary Chris Philp told The Telegraph: “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.

“Paying unemployed foreigners is an insult to hard-working taxpayers.”

His fury was reiterated by Reform’s Treasury spokesman, Robert Jenrick, who heaped blame onto the “Boriswave”.

He warned: “If Burnham bottles ILR changes, the Boriswave risks becoming permanent and will cost taxpayers tens of billions more.”

Robert Bates, research director at the Centre for Migration Control, described the situation as “nothing short of a fiscal disaster”.

“These figures make a mockery of the suggestion that mass legal migration has been a boon for Britain’s economy,” he fumed.

A Government spokesman said: “Under this Government, net migration is down by 82 per cent from its 2023 peak.

“Only people who are in the UK legally can claim taxpayer-funded benefits, of which around half are in work.

“Last November, we set out proposals to reform settlement which will double the standard qualifying period to 10 years for most migrants, with shorter routes for those who contribute most to the UK.”

Under existing rules, foreign nationals may access universal credit provided their immigration status grants them recourse to public funds.

Such rules include refugees, individuals holding EU settled status, and those who have obtained indefinite leave to remain.

Migrant Crisis: Migrant Families Take Home Record £12 BILLION in Universal Credit Claims in ‘Insult’ to British Taxpayers

Households containing at least one foreign national received almost £12 billion in Universal Credit payments over the past year, according to newly reported figures that have reignited Britain’s debate over immigration, welfare and the cost to taxpayers.

The figures show that around £11.9 billion was paid to households with at least one foreign-national claimant during the year ending March 2026. That represented approximately 15.6 per cent of total Universal Credit payments, according to data obtained from the Department for Work and Pensions (DWP).

The figures have prompted criticism from Conservative and Reform politicians, who have argued that the welfare system should place stronger restrictions on access for foreign nationals.

But the statistics require careful interpretation.

The £11.9 billion figure does not mean that £11.9 billion was paid exclusively to migrants. Universal Credit is paid at household level, meaning the figures can include British citizens living in households where another claimant is a foreign national.

The data also cover different categories of people with different immigration statuses and circumstances.

What the figures show

According to the reported DWP figures, payments to households containing at least one foreign national increased from around £9.5 billion in the previous year to £11.9 billion.

That represented an increase of approximately 25 per cent.

Of the £11.9 billion, around £7.7 billion went to households where the foreign-national claimant was recorded as being out of work. That amounted to roughly 65 per cent of the total payments associated with such households.

The numbers have become politically significant because Universal Credit is one of Britain’s largest welfare programmes.

It provides financial support to people on low incomes or who are out of work and can include assistance with housing and children.

However, being a foreign national does not automatically make someone ineligible for the benefit.

Eligibility depends on immigration status and the individual’s circumstances.

People subject to immigration restrictions such as “No Recourse to Public Funds” generally cannot claim Universal Credit. Those with settled status, refugee status or other qualifying forms of immigration status may be eligible.

Why the £12 billion figure has caused controversy

Critics argue that the figures demonstrate a growing pressure on the welfare system.

Shadow Home Secretary Chris Philp described the figures as “shocking” and argued that British taxpayers should not be paying billions of pounds in benefits to foreign nationals, particularly where recipients are not working.

Reform UK politicians have similarly linked the figures to Britain’s post-Brexit immigration system and the rapid increase in migration during the previous decade.

The Centre for Migration Control, which obtained the figures through a Freedom of Information request, argued that the figures undermined claims that large-scale migration necessarily produces a positive fiscal contribution.

Such conclusions are political interpretations of the data rather than findings contained in the DWP figures themselves.

The central factual point is that households containing foreign-national claimants received £11.9 billion in Universal Credit during the period examined.

What that means for Britain’s overall fiscal position is a broader question involving taxation, employment, public-service use and migrants’ contributions to the economy.

Migrants and Universal Credit

The relationship between migration and Universal Credit is more complicated than the headline figure might suggest.

Research by the University of Oxford’s Migration Observatory found that in December 2025, about 13 per cent of people receiving Universal Credit were neither UK nor Irish nationals.

The organisation also noted that many migrants are subject to restrictions on access to public funds.

Temporary migrants on work, study or family visas are commonly subject to a “No Recourse to Public Funds” condition, meaning they cannot normally access benefits such as Universal Credit.

By contrast, people who have obtained settlement, refugees and some people protected under specific schemes can qualify.

The Migration Observatory also found that in the year ending March 2026, the DWP made just over £80 billion in Universal Credit payments overall.

Of that amount, £6.7 billion was paid to households containing at least one EEA national claimant and £6.2 billion to households containing at least one non-EEA national claimant.

Those two figures cannot simply be added together because some households contain claimants from both categories.

They also include payments to UK and Irish citizens living in the same households.

This is why the precise definition of “migrant welfare” matters when interpreting the numbers.

The employment question

The proportion of payments going to households with someone out of work has become another major point of political debate.

Critics argue that people who come to Britain should primarily be expected to support themselves through employment.

But the wider evidence shows that migrants have very different employment outcomes depending on why they came to Britain and what immigration status they hold.

The Migration Observatory reported that migrants who came to Britain specifically for work were the most likely migrant group to be employed in 2025.

People who came through asylum routes had substantially lower employment rates, partly reflecting restrictions on asylum seekers’ ability to work while their claims are being processed.

Once refugees enter the labour market, employment rates tend to increase with time spent in the UK, although the organisation says they remain relatively low compared with some other migrant groups.

That distinction is important when discussing the £7.7 billion paid to households classified as out of work.

The category does not necessarily describe every foreign national in the household, nor does it explain why the household was receiving Universal Credit.

The Government’s response

The Government has defended the principle that benefits should be available to people who meet the legal eligibility requirements.

A Government spokesperson cited in reporting on the figures said that only people legally in the UK can claim taxpayer-funded benefits and noted that around half of the relevant claimants are in work.

The Government has also emphasised its broader programme to reduce net migration and reform the immigration system.

Its immigration policy paper sets out proposals designed to reduce migration, tighten settlement rules and strengthen controls over access to public services.

The Government has argued that immigration must be properly controlled while acknowledging that migrants can contribute to Britain’s economy, including through work in sectors such as healthcare and social care.

This creates a policy balancing act.

Reducing access to benefits for some groups could reduce welfare spending, but restrictions can also affect migrants who are working, paying taxes and filling labour shortages.

A changing immigration system

The debate comes as Britain is already considering major changes to settlement and immigration rules.

The Government has proposed increasing the standard qualifying period for indefinite leave to remain for many migrants.

The objective is to create a system in which long-term residence and settlement are more closely connected to contribution and compliance with immigration rules.

The Government has also promised tougher measures against illegal migration and greater enforcement against people who have no legal right to remain.

These policies reflect growing political pressure to demonstrate that immigration is being controlled.

The Universal Credit figures are likely to become part of that debate because they provide a concrete measure of the interaction between immigration and the welfare system.

The broader economic picture

There is another side to the argument.

Migrants who work in Britain pay income tax, National Insurance and other taxes, while also contributing to economic output.

The Migration Observatory reported that by December 2025, migrants accounted for approximately 19 per cent of UK employees.

Non-UK nationals were particularly represented in sectors including health and care, administration and hospitality.

This means the fiscal impact of migration cannot be measured simply by looking at benefit payments.

A full assessment would need to compare welfare spending with taxes paid, employment, earnings, public-service consumption and other economic effects.

That is why political claims about the £12 billion figure need to be distinguished from the underlying administrative data.

Why the issue is politically sensitive

Universal Credit has long been one of Britain’s most controversial welfare programmes.

Supporters argue that it provides essential assistance to people who have lost employment or cannot earn enough to cover basic living costs.

Critics argue that welfare spending can create financial incentives that discourage work or place excessive burdens on taxpayers.

When immigration is added to the debate, the issue becomes even more politically sensitive.

The question is no longer simply how much Britain spends on welfare, but who should be entitled to receive it and under what conditions.

Those questions are likely to become increasingly important as political parties debate immigration, taxation and public spending.

What the £11.9 billion figure does — and does not — tell us

The newly reported figures provide a clear measurement of Universal Credit payments associated with households containing foreign-national claimants.

They show that the amount reached £11.9 billion during the year ending March 2026 and that approximately £7.7 billion was associated with households where the relevant claimant was out of work.

But the numbers do not demonstrate that every pound was paid directly to migrants.

Nor do they establish that migration as a whole costs Britain £11.9 billion.

They do not measure taxes paid by migrants, economic output generated by migrant workers or the cost of public services used by migrants.

Instead, they measure Universal Credit payments connected to households containing foreign-national claimants.

That distinction is particularly important because the debate is already highly charged.

A bigger argument over immigration and welfare

The latest figures are likely to intensify demands for further changes to Britain’s welfare and immigration systems.

Opposition politicians have used the numbers to argue that the Government needs tougher rules.

The Government has responded by pointing to its immigration reforms, reduced net migration compared with the 2023 peak and plans to change settlement requirements.

Meanwhile, researchers have stressed that migrants are not a single group and that employment and benefit eligibility vary significantly according to immigration route and status.

For taxpayers, the £11.9 billion figure raises legitimate questions about how Universal Credit should be funded and who should qualify.

For policymakers, however, the challenge is broader: ensuring that the welfare system remains financially sustainable while maintaining clear and enforceable immigration rules.

The figures will therefore continue to feature prominently in Britain’s immigration debate.

Whether they ultimately lead to tighter welfare eligibility, faster movement into employment or further immigration reform will depend on decisions made by the Government and Parliament.

For now, the clearest conclusion from the data is narrower but significant: Universal Credit payments to households containing foreign-national claimants have reached a record level, and the scale of those payments has placed welfare and immigration firmly back at the centre of Britain’s political debate.