The Changing Landscape of Universal Credit Claimants: Immigration Status Revealed for the First Time

In a move that has garnered significant attention, the government has for the first time published data regarding the immigration status of those claiming Universal Credit (UC), a vital benefit aimed at supporting individuals with their living costs, whether they are employed or unemployed.

This marks an important shift in the transparency of the UK’s welfare system, providing insights into the demographics of those receiving this financial support.

As of June, nearly eight million people were receiving Universal Credit, a system designed to provide crucial financial assistance for people in various life situations.

This includes employed individuals whose wages are insufficient to cover basic living costs and those who are unemployed.

In the same month, 83.6% of claimants were British or Irish nationals, highlighting that the majority of UC recipients are from the UK or Ireland. However, a closer look at the data reveals a more complex and diverse picture.

The Immigration Status Breakdown

The newly published data reveals that more than a million UC claimants were born overseas.

This includes a significant proportion of EU citizens around 700,000 who arrived in the UK before Brexit and have retained their right to live and work in the country.

This group of claimants, often referred to as ‘pre-settlement’ EU citizens, is a direct consequence of the UK’s membership in the European Union prior to its exit.

Further breaking down the figures, the data shows that around 1.5% of claimants are refugees, while 0.7% are individuals who arrived in the UK through safe routes such as those designed for Ukrainians and Afghans.

These refugees and asylum seekers are typically eligible for support through UC due to their vulnerability and the temporary nature of their stay in the UK.

Perhaps the most striking revelation in the data is the number of claimants who are in the UK temporarily, who would usually not be eligible for benefits.

More than 75,000 individuals in this category are currently receiving Universal Credit. These claimants may be in the UK for a range of reasons, such as on short-term work visas or under other temporary immigration statuses.

The fact that such a large number of people in the UK temporarily are able to access benefits has raised questions and concerns, particularly regarding the fairness of the system and whether those who are not expected to stay long-term should receive financial support from UK taxpayers.

Increasing Numbers of Claimants

Since April 2022, the number of people receiving UC has risen sharply, from 5.5 million to nearly 8 million in June 2025.

This increase has been attributed to a variety of factors, including the economic fallout from the COVID-19 pandemic, the rise in living costs, and the broader economic uncertainty that has affected the UK in recent years.

The proportion of claimants born overseas has remained relatively stable throughout this period, fluctuating between 15% and 17%.

This stability in the percentage of foreign-born claimants, despite the overall rise in the number of UC recipients, suggests that the demographic makeup of UC claimants has not shifted dramatically, although the total number of claimants has increased.

Government and Political Reactions

The publication of this data follows considerable pressure from some Conservative members of Parliament and independent MP Rupert Lowe, who had been calling for greater transparency regarding the immigration status of benefit claimants. For some, the data serves as a basis for criticism of the current welfare system.

A spokesperson for the Prime Minister stated that the government is keen to reduce the number of unemployed foreign nationals claiming benefits. They also highlighted the government’s ongoing efforts to “toughen up the system” by increasing the waiting time for migrants to qualify for permanent or settled status in the UK.

The government’s position on Universal Credit and foreign nationals is clear: individuals in the UK illegally are not eligible for benefits. However, the question remains as to whether those who are in the UK temporarily or on limited terms should have access to such support.

Critics of the current system argue that the number of temporary residents and foreign nationals receiving UC is simply too high and that these individuals are placing an unnecessary strain on the system.

The Conservative Perspective

The Conservative Party has long advocated for changes to the way foreign nationals are treated within the welfare system.

Senior figures within the party, including the Home Secretary and various MPs, have called for foreign nationals to be excluded from certain benefits, notably the Personal Independence Payment (PIP) disability benefit and the health element of Universal Credit.

Chris Philp, the Shadow Home Secretary, described the publication of the data as “clear proof that the Labour government has lost control of our welfare system.”

He further claimed that the system has become unsustainable and that significant reforms are needed. According to him, it is imperative to ensure that support is directed primarily at those who have contributed to the UK economy, rather than those who have not yet established themselves in the country.

Lowe, a vocal critic of the current state of affairs, also seized on the publication of the data as a “huge win” for those who have long pushed for greater transparency. He did not mince words in his criticism of the current welfare system, calling the levels of foreign nationals claiming UC “absolute insanity.”

Lowe and others in the Conservative Party argue that the UK cannot afford to continue providing benefits to a growing number of non-UK nationals, especially at a time when the country is facing mounting financial challenges.

Labour’s Response

On the other side of the debate, Labour Party figures have expressed concern over what they see as unfair attacks on foreign nationals in the welfare system.

Some have suggested that the government’s push to reduce the number of foreign nationals on UC is politically motivated and reflects a broader trend of scapegoating vulnerable groups in society.

Critics of the Conservative position argue that such policies will only serve to divide communities and create further inequality.

At the same time, Labour’s stance is not without nuance. While they support the welfare system as a whole, they also recognise the need for reform to ensure that it is fair and sustainable in the long term.

They have pointed to the increasing pressure on welfare systems as a result of rising living costs and have suggested that the focus should be on improving the system’s efficiency and targeting support where it is most needed.

The Road Ahead

The publication of immigration status data has ignited a broader debate about the future of Universal Credit, the welfare system, and the place of foreign nationals within it.

This debate is only likely to intensify as more data is made available, and as the government and opposition parties continue to push their competing visions for the future of welfare in the UK.

As the government continues to tighten immigration controls and demand greater accountability from foreign nationals claiming benefits, the pressure on the welfare system is expected to grow.

For many, the question remains whether the current system can support the needs of both British nationals and foreign nationals alike, without leading to further social and political division.

One thing is certain: the publication of immigration status data marks the beginning of a new chapter in the UK’s welfare policy. With the government’s increased focus on immigration and benefit claims, the coming years will likely see significant changes to how Universal Credit is administered and who qualifies for support.