Nearly 1.5 million migrants claimed benefits through Universal Credit during 2025, according to newly released government figures. The data showed foreign nationals accounted for almost one in six claimants, increasing pressure on Labour as ministers consider tougher welfare and immigration policies.
Government figures reveal scale of Universal Credit claims
The figures, obtained through Freedom of Information requests, showed that 1,497,774 migrants claimed Universal Credit at some point during the 12 months to December 2025.
That represented 15.6 per cent of the total 9.6 million people who received the benefit during the year. It is the first time the Department for Work and Pensions has released this level of detail about the immigration status of claimants.
The data include people who may only have claimed temporarily before moving into employment later in the year.
Which groups claimed benefits?
The largest group of migrant claimants came through the EU Settlement Scheme, accounting for around 899,000 people. More than 145,000 refugees also received Universal Credit, while another 66,497 people had humanitarian protection status.
Around 332,000 claimants held indefinite leave to remain or limited leave to remain, including dependants who joined family members already living in Britain. A further 54,749 people were listed under “other” immigration categories, while more than 31,000 claimants had no immigration status recorded digitally, reports Telegraph.
Labour faces growing pressure over welfare plans
The figures have intensified debate around Labour’s proposed migration reforms. The Government is considering plans to increase the waiting period for indefinite leave to remain from five years to 10 years. Ministers are also consulting on proposals that could prevent migrants from claiming welfare benefits until they become British citizens.
Supporters of the changes argue migrants should contribute through work and taxes before gaining access to public funds. Critics inside Labour have raised concerns about applying tougher rules retrospectively to migrants already living in the UK. More than 100 Labour MPs are reportedly unhappy with some of the proposals.
Critics warn welfare costs are rising
Opposition politicians and migration campaign groups reacted strongly to the figures after their release. Shadow Home Secretary Chris Philp said migrants should not receive benefits before becoming British citizens. Meanwhile, the Centre for Migration Control claimed the welfare system was facing growing financial pressure.
The overall UK welfare bill is forecast to increase from £313 billion in 2024/25 to around £373 billion by the end of the decade.
Government defends reforms
Despite the criticism, ministers pointed out that the proportion of foreign nationals claiming Universal Credit had fallen compared with previous years. A Government spokesperson said planned reforms would ensure migrants “contribute more than they take out” before becoming eligible for long-term support from the state.
