Nearly two million foreign nationals 'receiving benefits or state pension

A newly published inquiry has ignited a fierce political debate over public spending after revealing that nearly two million foreign nationals received welfare support or the state pension. According to the Centre for Social Justice, approximately 1.85 million non-British adults accessed at least one form of welfare assistance or state pension in 2025, after adjusting for individuals receiving multiple streams of support. The findings place the estimated cost at billions of pounds and have intensified scrutiny on the relationship between immigration patterns and the rising welfare bill.

Published on Tuesday, 13 October 2026, the research forms the backbone of the think tank's report titled State of Dependency. The analysis calculates that working-age benefits accounted for roughly £14.3 billion of the total, with pension-related payments contributing £2.9 billion and child-related support adding £5.8 billion. Furthermore, reporting details how the Centre for Social Justice warned that the total working-age benefit bill is on course to reach £136.1 billion.

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Think tank founder and former Conservative leader Sir Iain Duncan Smith argued that unconstrained migration has severely strained public finances.

"Britain’s immigration and welfare systems were founded on the expectation that those arriving here should be able to support themselves and their families,"

Sir Iain Duncan Smith, Founder of the Centre for Social Justice, via Express

He urged a swift return to contribution and reciprocity within the system.

Projections indicate that the number of migrant beneficiaries will comfortably surpass the two million mark by the end of the decade. Behind these headline figures lies a notable surge in Universal Credit claimants. The Centre for Social Justice reports a 38 percent increase in foreign nationals claiming Universal Credit since April 2022, pushing the total to 1.3 million recipients. This figure comprises 745,000 individuals covered by the EU Settlement Scheme alongside 537,000 migrants arriving from outside the European Economic Area.

Benefit Category / Support Type	Estimated Foreign National Caseload	Estimated Annual Cost / Expenditure
Working-Age Benefits (Total)	1.4 million	£14.3 billion
Universal Credit (Sub-category)	1.3 million	—
State Pension & Pension Credit	400,000 state pension, 76,000 Pension Credit	£2.9 billion
Child-Related Support & Benefits	—	£5.8 billion
Disability & Sickness Support	200,000 disability, 200,000 sickness	,

The release of the data drew an immediate response from Whitehall. A government spokesperson pushed back against the conclusions, stating that ministers do not recognise figures which appear to be based on small-sample survey data that is not robust enough to produce reliable estimates. The administration further emphasized that net migration has fallen significantly from previous peaks, and maintained that only individuals possessing explicit eligible immigration status can access taxpayer-funded benefits, noting additionally that roughly half of Universal Credit claimants from abroad are currently in work.

Opposition politicians seized upon the findings to criticize government management of public services. Shadow Work and Pensions Secretary Helen Whately asserted that the welfare bill has spiralled out of control, proposing that restricting benefit access for foreign nationals could generate substantial annual savings. Echoing these sentiments, Shadow Home Secretary Chris Philp warned that rising immigration without adequate controls places unsustainable pressure on public infrastructure.

Meanwhile, alternative policy proposals have brought broader systemic questions to the fore. Analysis examines Reform UK's parallel proposals to slash £50 billion from welfare spending by 2030, a plan that heavily relies on barring foreign nationals from most benefit entitlements alongside sweeping overhauls of disability payments like Personal Independence Payments. Yet economic analysts and independent think tanks caution that executing such sweeping bans risks severe diplomatic friction, noting that millions of EU citizens possess long-term settlement rights protected by post-Brexit agreements.

As political parties posture ahead of upcoming fiscal events and parliamentary debates, attention will turn to the government's forthcoming legislative agenda. Ministers are expected to outline their own formal welfare and immigration reform proposals later this year, setting up a legislative battle over qualifying periods, benefit eligibility, and the future sustainability of the public purse.