Payments given to people from other countries who live in the UK have nearly doubled in just three years, and are now costing the country almost £1 billion every month. According to new figures, in March 2025, households that had at least one person who wasn’t British or Irish received £941 million in Universal Credit. Back in March 2022, the amount was £461 million. This means that by 2025, over 15% of the total monthly Universal Credit bill – which was £6.05 billion – went to foreign nationals.
Experts say this big increase is linked to the rising number of people moving to the UK and more asylum seekers being given permission to stay. Once they get official refugee status, they become eligible for government support like benefits.
The numbers, which were released through a Freedom of Information request, show that in just one year the cost rose from £726 million to £941 million – a jump of nearly 30%. The Department for Work and Pensions (DWP) explained that people counted as foreign need to pass a test showing they truly live in the UK and also must have permission to stay. If a couple applies for support and just one person is not British or Irish, the claim is considered foreign.
Former health minister Neil O’Brien said both migration and spending on benefits are growing too quickly. He warned that the UK’s generous system might be attracting more people from abroad. In a written statement, he said, “Migrants know that if they get to the UK, they’ll be allowed to stay. As long as that continues, more and more will come.”
Labour MP Graham Stringer also raised concerns, saying that in times when the government is trying to save money, spending nearly £1 billion a month on benefit payments to foreign nationals shouldn’t be a top priority. He mentioned that it should be considered carefully, especially when there are discussions about reducing support for disabled people (PIP) or cutting winter fuel payments for the elderly.
At the same time, Deputy Prime Minister Angela Rayner has reportedly urged Chancellor Rachel Reeves to consider placing tighter limits on how and when migrants can claim benefits like Universal Credit. She also suggested raising the NHS surcharge for migrants and changing the rules around pensions.
A leaked memo from Rayner warned that many people who came to the UK in the early 2020s are now getting indefinite leave to remain, which gives them full access to benefits for the long term. In response to rising public concern, Labour leader Sir Keir Starmer has put forward new ideas to tighten immigration rules. One major suggestion is to double the amount of time migrants must live in the UK before they can claim full benefits — changing it from five years to ten — unless they can clearly show they’ve made a strong, lasting contribution to the country.
A government spokesperson said that the current administration inherited a benefits system that was already out of control, but since July last year, they have worked to reduce how much of the money goes to people from outside the UK and Ireland. They also pointed out that only people with approved immigration status and who meet strict rules can claim benefits like Universal Credit.
