Nearly two million foreign nationals ​’receiving benefits or state pension’ . hyn

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The Centre for Social Justice has put the spotlight on foreign nationals claiming benefits (Image: Anadolu via Getty)

Nearly two million foreign nationals received benefits or the state pension last year at an estimated cost of £23billion, according to a new analysis calling for urgent reform to welfare and immigration. The Centre for Social Justice (CSJ) found approximately 1.85million non-British adults received at least one form of welfare support or the state pension in 2025. It warns this number is expected to top two million by 2030, with the total bill edging towards £27billion.

The Government says it does not “recognise” the figures and has cast doubt on the findings. But the influential think tank claims about 1.4million foreign nationals receive working-age benefits at a cost of approximately £14.3billion. This is alongside £2.9billion in pension-related payments and £5.8billion in benefits linked to children.

It states: “The number of foreign nationals on Universal Credit has increased by 38% since April 2022 alone, to 1.3million, including 745,000 covered by the EU settlement scheme and 537,000 migrants from outside the European Economic Area.”

The CSJ reports that “around 200,000 foreign nationals now receive disability benefits such as the Personal Independence Payment and the Disability Living Allowance”, with another 200,000 receiving sickness benefits. It estimates 400,000 foreign nationals receive the state pension, with around 76,000 getting Pension Credit.

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Former Conservative leader Sir Iain Duncan Smith, who founded the CSJ, said: “Britain’s immigration and welfare systems were founded on the expectation that those arriving here should be able to support themselves and their families. But at a time when families and businesses are being clobbered with yet more taxes, many will be deeply concerned at the extent to which governments have let unconstrained immigration drive up the welfare bill.

“We must urgently now restore contribution and reciprocity to the welfare system while helping the millions of Brits on out-of-work benefits back towards a better future for themselves and their families. We have done this before, we can do it again.”

Robert Jenrick at BBC

Robert Jenrick: ‘If I went to live in Japan or India, I wouldn’t expect benefits’ (Image: Andy Rain/EPA/Shutterstock)

The CSJ has also claimed that since January 2020, “non-EU nationals accounted for 2.1million new payroll jobs, while payrolled jobs going to British nationals fell by 186,000”. It says the “out-of-work benefit caseload rose by 2.3million over the same period”. The think tank further warns that the “total working-age benefit bill is set to reach £136.1billion in 2026-27”.

Robert Jenrick – Nigel Farage’s choice to serve as chancellor in a Reform UK government – said: “This is an outrageous waste of taxpayers’ money. If I went to live in Japan or India, I wouldn’t expect benefits – and nor should migrants coming to the UK.

“How on earth can Andy Burnham justify this spending when he’s planning on putting up taxes even higher at the Budget? Reform will end all benefits for migrants so we can afford to raise the tax-free personal allowance to £15,000.”

A government spokesperson said: “We do not recognise these figures, which appear to be based on small-sample survey data, which is not robust enough to produce reliable estimates. Under this Government, net migration is down by 82% from its 2023 peak, and only people with eligible immigration status can claim taxpayer-funded benefits, of which around half of those claiming Universal Credit are in work.

“We have also set out proposals which will double the standard qualifying period to 10 years for most migrants, with shorter routes for those who contribute most to the UK.”

The Goverment argues the data sources used by the CSJ should be “treated with caution” due to small sample sizing. It claims the research draws on a mix of official data sources which were “not intended for this purpose”.

Helen Whately at Conservative conference

Shadow Work and Pensions Secretary Helen Whately (Image: Gary Roberts/SOPA Images/Shutterstock)

Shadow Work and Pensions Secretary Helen Whately said: “The welfare bill has spiralled out of control, with millions of people trapped on out-of-work benefits and taxpayers footing an ever-growing bill. This report exposes the scale of the problem facing Britain’s welfare system and the urgent need to restore fairness and contribution. The Conservatives will end access to benefits for foreign nationals, saving £9.5billion a year. Our welfare system should be there as a safety net for British citizens who have paid in, not a pull-factor for foreign nationals.”

Shadow Home Secretary Chris Philp added: “When immigration rises without proper control, the pressure on public services and the welfare system grows, and it is working people who are left to pick up the tab. Immigration and welfare policy cannot be treated in isolation.

“Britain must have a system that rewards contribution, not one that leaves taxpayers paying the price for Labour’s failure to control our borders.”

Nearly Two Million Foreign Nationals ‘Receiving Benefits or State Pension’ – Questions Mount Over Britain’s Welfare System

Britain’s welfare system is once again at the centre of a heated political debate after claims that nearly two million foreign nationals are receiving benefits or state pension payments. The figure has prompted questions about eligibility rules, public spending and whether the government is doing enough to ensure that financial support reaches those entitled to receive it.

For a country facing pressure on public services, an ageing population and persistent concerns about household finances, the question of who receives state support is politically significant. Taxpayers want to know how public money is being spent, while people who rely on benefits and pensions need a system that is fair, reliable and capable of protecting those who qualify.

However, interpreting a headline figure of this size requires care. Foreign nationality alone does not establish whether someone is eligible for benefits, whether their payments are lawful or whether they have made contributions to the British economy. Benefits and pensions also operate under different rules, making it essential to distinguish between the various forms of support included in any published total.

The debate is therefore about more than the number of foreign nationals receiving payments. It concerns the rules governing entitlement, the quality of official information and the government’s responsibility to explain how the welfare system works.

What Does the Figure Actually Tell Us?

A figure approaching two million naturally attracts attention, particularly when it is presented alongside concerns about the cost of living and pressure on government budgets. Yet the headline number cannot, on its own, establish whether public spending is excessive or whether the system is being abused.

The first question is what the figure counts. Does it include everyone who holds a foreign nationality and receives any form of state support? Does it include people who have lived and worked in Britain for decades? Does it cover pensioners who contributed through employment and National Insurance payments? Or does it combine several different categories of benefit recipients?

These distinctions matter because the term “foreign national” covers a diverse population. It can include people who arrived recently, individuals who have lived in Britain for many years, workers who have paid taxes throughout their careers and pensioners who spent much of their working lives contributing to the public finances.

A person’s nationality does not automatically determine their entitlement to every benefit. Eligibility can depend on immigration status, residence, contribution records, income, savings and the specific rules governing the payment in question.

Consequently, a large number of recipients does not necessarily demonstrate that the system is failing. To assess whether there is a problem, the public needs a breakdown showing which payments are involved, the number of people receiving each type of support and the legal basis for their eligibility.

Without that information, the headline may generate political controversy without providing a complete picture of the underlying issue.

State Pensions Are Different From Means-Tested Benefits

One of the most important distinctions concerns the state pension.

The UK State Pension is primarily based on an individual’s National Insurance record. People generally need a sufficient qualifying record to receive it, although eligibility and payment arrangements can vary according to individual circumstances and the applicable rules.

Nationality alone does not explain whether a person qualifies. A foreign national who has worked legally in Britain and built up the required National Insurance record may be entitled to a state pension in the same way as another person with an equivalent qualifying record.

This is fundamentally different from suggesting that someone who has recently arrived in the country automatically receives a full state pension. That is not how the system works.

Other benefits have their own eligibility requirements. Some are means-tested, some depend on National Insurance contributions and others are linked to disability, caring responsibilities, housing costs or a person’s circumstances.

The distinction matters when assessing public spending. A pension payment based on an established contribution record should not automatically be treated as equivalent to a means-tested benefit awarded to a household on a low income.

A meaningful assessment would separate pension payments from working-age benefits and identify the expenditure associated with each category. It would also clarify whether the figures count individual claimants, households or payments, since these measures are not interchangeable.

This level of detail would help taxpayers understand the figures without unfairly suggesting that every recipient is receiving support under the same conditions.

Pressure on Public Finances

The controversy comes amid broader concerns about the sustainability of public spending. Britain must fund pensions, healthcare, education, social care, housing support and a range of other public services while managing competing demands on taxation and borrowing.

Welfare spending is a major part of that challenge. The government must ensure that eligible people receive the support Parliament has provided for them while preventing fraud, correcting administrative errors and enforcing the rules consistently.

For taxpayers, the basic expectation is reasonable: public money should be spent lawfully, efficiently and transparently.

But a serious debate about costs requires more than identifying the nationality of recipients. Policymakers need to consider the total value of payments, the number of people entitled to receive them, the contributions recipients have made and the wider economic effects of employment, taxation and population change.

Foreign nationals who work in Britain may pay income tax, National Insurance and other taxes. Their contribution to public finances can therefore be relevant when assessing the overall relationship between migration and public spending.

That does not mean every migrant makes the same contribution or that every policy produces the same fiscal outcome. Age, employment, earnings, household composition and length of residence can all affect the calculation.

A balanced assessment should examine both public expenditure and the revenues associated with economic activity. Looking at only one side risks producing an incomplete picture.

Why Immigration and Welfare Have Become Politically Connected

Immigration has become one of the most contentious issues in British politics. Debates over border controls, asylum accommodation, public services and the cost of living have encouraged politicians to ask whether existing policies are working as intended.

For parties advocating tighter immigration rules, figures about foreign nationals receiving benefits provide an opportunity to argue that the government needs stricter controls and more effective enforcement.

Other politicians emphasise the contributions migrants make to the workforce and the importance of distinguishing lawful entitlement from fraud or abuse. They argue that nationality-based comparisons can obscure the different circumstances of individual recipients.

Both perspectives raise questions that can be examined through evidence. The key is to avoid assuming that everyone within a broad category has the same financial circumstances or legal status.

If a person receives a payment to which they are not entitled, the authorities should investigate and take appropriate action. If someone meets the legal requirements, their entitlement should be assessed under the rules rather than through generalisations about their nationality.

The government also needs to explain how immigration policy interacts with welfare rules. Clear public information can help distinguish legitimate concerns about expenditure from misleading claims about who receives support.

The Need for Stronger Checks and Transparency

Regardless of the political arguments, the administration of public funds should be subject to effective oversight.

Government departments need reliable information to confirm eligibility, update records and identify payments that may have been made incorrectly. Where relevant, checks should be designed to detect fraud without creating unnecessary barriers for people who are entitled to support.

Administrative errors can occur in complex systems, particularly when personal circumstances change. A recipient may begin working, move house, experience a change in household income or become subject to different eligibility conditions.

Effective systems must be able to identify such changes and respond promptly. At the same time, safeguards are necessary to ensure that people are not wrongly denied support because of inaccurate information or delays in processing their cases.

Transparency is equally important. If the government publishes a figure showing how many foreign nationals receive benefits or pensions, it should explain the definition used, the period covered and the categories included.

It should also provide enough information for the public to distinguish between recipients of contributory pensions, means-tested benefits and other payments.

Such disclosure would make it easier for Parliament, journalists and taxpayers to assess whether the system is operating efficiently. It would also help prevent figures from being used to support conclusions that the underlying data cannot justify.

Fairness for Taxpayers and Eligible Recipients

The argument over welfare spending often becomes framed as a conflict between taxpayers and benefit recipients. In reality, the interests involved are more complicated.

Many people who receive benefits have previously paid taxes and National Insurance. Others receive support because they are disabled, caring for relatives, unemployed or facing circumstances that leave them unable to meet essential costs.

Pensioners may have contributed to the public finances for decades before reaching retirement. Some foreign nationals will also have spent many years working and paying taxes in Britain before becoming eligible for pension payments.

At the same time, taxpayers have a legitimate interest in ensuring that the system is not exploited and that government departments are accountable for their decisions.

A fair system must therefore meet two objectives: enforce eligibility rules consistently and protect people who qualify for support.

If the rules are too loose, public money may be wasted. If they are applied incorrectly or administered poorly, eligible recipients may suffer financial hardship. Both problems deserve attention.

The solution is not to assume that every recipient is undeserving or that every concern about welfare spending is politically motivated. It is to establish the facts and ensure that the rules are enforced properly.

What Should the Government Explain?

If nearly two million foreign nationals are indeed covered by the reported figure, the government should make the underlying information clear.

First, it should specify which benefits and pension payments are included. Second, it should distinguish between people who qualify through National Insurance contributions and those receiving means-tested support. Third, it should explain the relevant residence and immigration requirements.

The government should also publish expenditure figures where available, rather than relying exclusively on the number of recipients. Two categories of payments can involve very different average costs, so recipient totals alone cannot reveal the full financial impact.

Finally, it should explain what safeguards exist to prevent fraudulent claims and how errors are identified and corrected.

These questions would provide a stronger basis for public debate than a headline number in isolation. They would allow people to judge whether current rules are appropriate, whether administrative systems are effective and whether reforms are necessary.

A Debate That Requires Facts, Not Assumptions

The claim that nearly two million foreign nationals are receiving benefits or state pension payments is likely to attract strong reactions because it touches on immigration, taxation, retirement and the cost of government.

But the figure needs context before it can support conclusions about fairness or public spending. Foreign nationality does not automatically establish eligibility, ineligibility or the financial contribution someone has made to Britain.

The distinction between a state pension and means-tested welfare is particularly important. Treating them as a single category can obscure how different payments operate and why recipients qualify.

For the government, the responsibility is to provide clear information, enforce the rules and demonstrate that public funds are being administered properly. For political parties, the challenge is to discuss welfare and immigration without confusing legitimate policy questions with unsupported generalisations.

For taxpayers, transparency should remain the central demand. People deserve to know how their money is spent, which rules govern eligibility and whether those rules are being followed.

Ultimately, a sustainable welfare system depends on public confidence. That confidence is strengthened when government decisions are transparent, errors are corrected and entitlement rules are applied consistently.

The debate over foreign nationals receiving benefits or pensions should therefore begin with a straightforward question: what exactly does the figure measure, and what does the evidence show about the payments involved? Only after those questions are answered can Britain have an informed discussion about whether its welfare system needs reform.

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