Department for Work and Pensions data show households with at least one foreign national received a record £11.9bn in universal credit in 2025, up from £9.5bn in 2024 and £7.5bn in 2023. These households accounted for about 15.6% of total payments, with roughly £7.7bn (65%) going to claimants out of work. The figures arrive amid Home Office proposals to lengthen the qualifying period for Indefinite Leave to Remain and political pressure to exempt care workers from retrospective rules.
Households With Foreign Nationals Received Record £11.9bn In Universal Credit In 2025, DWP Data Show
Andy Burnham must decide whether to water down proposals by the Home Secretary to limit the settlement rights of migrants - AFP/Oli Scarff
Official Department for Work and Pensions (DWP) figures show households containing at least one foreign national were paid a record £11.9bn in universal credit in 2025. That total rose from £9.5bn in 2024 and £7.5bn in 2023, an increase of roughly 25% year-on-year between 2024 and 2025.
The figures — obtained by the Centre for Migration Control under freedom of information rules — indicate that these households accounted for about 15.6% of all universal credit payments in the year. Around 65% of the payments to those households, approximately £7.7bn, went to claimants who were out of work.
Eligibility for universal credit for foreign nationals depends on immigration status and whether an individual has "recourse to public funds". Common examples of statuses that permit claims include refugees, people with EU Settled Status and holders of Indefinite Leave to Remain (ILR).
Political Context And Proposed Changes
The release of the new statistics coincides with debate within the Labour Party and government over proposed changes to settlement rules. Home Secretary Shabana Mahmood has proposed extending the standard qualifying period for ILR from five years to 10 years for most migrants, with a further proposed increase to 15 years for foreign care workers. The proposals could apply retrospectively in some cases.
Shabana Mahmood has proposed not granting leave to remain until after 10 years - REUTERS/Toby Melville
Some Home Office modelling has suggested that allowing foreign care workers to settle from this year could impose a net lifetime fiscal cost to the taxpayer of up to £10bn. That estimate has become a focal point in arguments for and against changing settlement rules.
Responses From Politicians And Campaigners
Chris Philp, Shadow Home Secretary, said: "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."
Robert Jenrick, Reform's treasury spokesman, warned that changes to ILR could have long-term fiscal implications and argued for stricter limits on benefits for foreign nationals.
Conversely, up to 100 Labour MPs, including Communities Secretary Angela Rayner, have urged exemptions for care workers and criticised retrospective application of the proposed rules as unfair. Robert Bates, research director at the Centre for Migration Control, described the figures as evidence that recent legal migration has increased fiscal pressure on public services.
A government spokesperson said: "Under this government, net migration is down by 82% 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."
These statistics add to ongoing policy debates about immigration, labour shortages (particularly in social care), and the sustainability of welfare spending, and they are likely to shape discussions about any forthcoming settlement reforms.
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