Will EU Citizens Lose Their Benefit Rights? Discover the Controversial Reform Plans!

Nigel Farage has announced that Reform UK plans to strip EU citizens of their rights to claim benefits as part of a broader strategy to cut government spending by £20 billion annually. This move involves renegotiating the previous government’s Brexit deal, which Farage deems unfair. The proposed changes could have significant implications for UK citizens and foreign nationals alike, especially as Chancellor Rachel Reeves prepares for the upcoming Budget, where tax increases are anticipated.

Last updated: 30 October 2023 (BST)

What’s happening now

Reform UK's latest proposals come in the wake of growing concerns over government spending and taxation. Farage's announcement highlights a clear intention to shift financial burdens away from British citizens, suggesting foreign nationals should contribute more to the UK’s welfare system. This plan aligns with broader political debates around Brexit, immigration, and public spending, particularly as the government's fiscal policies are about to be outlined in the forthcoming Budget.

Key takeaways

Reform UK plans to renegotiate the Brexit deal to strip EU citizens of their benefits.
The party estimates that restricting universal credit to British citizens could save £10 billion by 2030.
Proposals include significant cuts to foreign aid and NHS fees for visa applicants.

Timeline: how we got here

The discussion surrounding the rights of EU citizens in the UK has evolved significantly since Brexit was formalised. Here’s a brief timeline of key events:

31 January 2020: The UK officially leaves the EU.
31 December 2020: The Brexit transition period ends, solidifying the rights of EU citizens in the UK under Boris Johnson's withdrawal agreement.
June 2025: Provisional government statistics reveal that 9.7% of universal credit claimants are EU citizens.
30 October 2023: Nigel Farage announces Reform UK’s plans to overhaul the current benefits system.

What’s new vs what’s known

New today/this week

Farage has articulated a vision for significant policy changes, including the potential renegotiation of the Brexit deal. He claims that the existing agreement disproportionately benefits EU citizens at the expense of British citizens. His proposals aim to curb the financial drain caused by foreign nationals claiming UK benefits.

What was already established

The Brexit withdrawal deal, signed in 2020, allowed EU citizens residing in the UK to retain their rights to claim certain benefits. This arrangement has been a point of contention, with ongoing debates about its fairness and impact on British citizens.

Impact for the UK

Consumers and households

Farage's proposals could lead to significant shifts in the welfare landscape for both EU citizens and British nationals. If the government restricts benefits to British citizens only, many foreign nationals may face financial hardships, while UK citizens may see a reduction in public spending or increased taxes as the government seeks to balance its budget.

Businesses and jobs

Businesses relying on overseas workers may face challenges if benefits are restricted. This could impact sectors such as hospitality and agriculture, which often rely on EU nationals. The change may also affect the labour market by altering immigration patterns and the availability of workers.

Policy and regulation

The Conservative Party has reacted strongly against the idea of reopening the Brexit deal, warning that it could lead to a trade war with the EU. This sentiment reflects a broader concern about maintaining stable relations with European partners amid ongoing negotiations and trade agreements.

Numbers that matter

9.7%: Proportion of universal credit claimants who are EU citizens, as of June 2025.
£6.4 billion: Estimated savings from restricting universal credit to British citizens in the current fiscal year.
£10 billion: Projected savings by 2030 if reforms are implemented.
£1 billion: Proposed cap on foreign aid spending, significantly lower than previous budgets.
£3.5 billion: Annual savings from removing personal independence payments for certain anxiety issues.

Definitions and jargon buster

Universal Credit: A social security benefit in the UK designed to support individuals and families on low incomes.
Brexit: The term used for the United Kingdom's exit from the European Union, formalised on 31 January 2020.
NHS surcharge: A fee paid by non-UK residents to access healthcare services in the National Health Service (NHS).

How to think about the next steps

Near term (0–4 weeks)

As the Budget approaches, stakeholders will be observing how the government responds to Reform UK's proposals. Any significant changes in policy direction could impact upcoming elections and public sentiment.

Medium term (1–6 months)

The next few months will likely see debates intensify around immigration, public spending, and benefits. Political parties will need to clarify their positions ahead of the next general election, scheduled by 2029.

Signals to watch

Government announcements on the Budget and tax policies.
Responses from the EU regarding any potential renegotiation of the Brexit deal.
Public opinion shifts on immigration and welfare policies as a result of these proposals.

Practical guidance

Do

Stay informed about upcoming Budget announcements and their implications for benefits and taxes.
Engage with local representatives about concerns regarding changes to welfare policies.
Monitor the political landscape as parties position themselves for the next election.

Don’t

Assume that proposed changes will not affect you; understand how they may impact your financial situation.
Dismiss the importance of public opinion; it can influence political decisions significantly.
Ignore the potential for negotiations with the EU, as these could reshape the benefits landscape further.

Checklist

Review your own eligibility for benefits based on current and proposed changes.
Understand the implications of potential foreign aid cuts on international relations.
Keep track of political developments that may affect your rights as a citizen or resident.
Consider the economic impact of proposed changes on your local community.
Stay engaged with advocacy groups if you are concerned about welfare reforms.

Risks, caveats, and uncertainties

While Farage's proposals may resonate with certain voters, they are fraught with risks. The suggestion to renegotiate the Brexit deal raises questions about the feasibility of such negotiations and the potential backlash from both the EU and domestic stakeholders. Additionally, the financial savings projected by Reform UK are contingent upon successful implementation and may not materialise as anticipated. Political opposition is likely to challenge these plans, potentially leading to significant debate and further uncertainty.

Bottom line

The proposed changes by Reform UK represent a significant shift in the UK’s approach to benefits and foreign aid, aiming to reallocate financial responsibilities towards foreign nationals. As the Budget approaches, the political landscape will be closely monitored for shifts in policy that may impact citizens and residents alike. Understanding these proposals is crucial for all UK residents as they navigate the changing socio-economic environment.

FAQs

What are the main proposals from Reform UK regarding benefits?

Reform UK proposes to restrict universal credit to British citizens, potentially saving £10 billion by the end of the decade, while renegotiating the Brexit deal to alter EU citizens' rights.

How would these changes impact EU citizens living in the UK?

If implemented, EU citizens may lose their right to claim benefits, which could lead to significant financial challenges for many who rely on such support.

What is the rationale behind cutting foreign aid spending?

Reform UK argues that reducing foreign aid spending will allow for better allocation of resources within the UK and lessen the need for tax hikes on British citizens.