Reform UK has announced plans to block foreign nationals from claiming most benefits if the party wins the next general election, as part of a sweeping overhaul of Britain’s welfare system.

The proposals would apply even to European Union citizens with settled status in the UK, potentially forcing a renegotiation of Britain’s post Brexit agreement with the EU.

Unveiling the plans on Monday, Reform’s economy spokesman Robert Jenrick said the current system was unfair on British taxpayers.

“The British taxpayer is acting as the welfare state for the world. That’s unfair, we all know it,” he said.

Reform claims its proposals would save around £21 billion a year by the fifth year of implementation, although Labour has challenged the figures and argued that the vast majority of migrants already have no access to public funds.

The Conservatives have also criticised the plans, describing them as “cobbled together”.

Jenrick said Reform wanted to “restore fairness” to the welfare system, pointing to figures showing that around one in six Universal Credit claimants are not British or Irish citizens.

He argued that the money should instead be spent on improving the lives of British people.

The government currently expects welfare spending in Great Britain to reach around £322 billion this year, equivalent to 10.6% of GDP. Just over half of that spending goes towards pensioners.

Reform says it has spent six months developing a 50 page welfare plan which it claims could eventually reduce annual spending by £50 billion.

Alongside restrictions on foreign nationals, Reform is proposing a new “welfare to work” programme for people who have been receiving benefits for more than 12 months.

Those considered fit to work would be required to complete 20 hours of community work each week, organised through their local council.

The work could include cleaning high streets and parks, carrying out minor repairs, maintaining community centres and libraries and improving neglected public spaces.

People who refuse to participate or are deemed to have performed poorly could face sanctions, including reductions to their benefits.

Jenrick said the scheme would see claimants working “to clean up high streets and parks, to beautify neglected places” and carry out other tasks within their communities.

Under Reform’s proposals, foreign nationals would be prevented from accessing a wide range of benefits, including Universal Credit, housing benefit, pension credit, Jobseeker’s Allowance, child benefit, free childcare and disability benefits.

Only a limited number of exemptions would remain, including the War Widows Pension and Armed Forces compensation.

The announcement follows Reform’s pledge over the weekend to replace the current Personal Independence Payment system, known as PIP, if it enters government.

Reform estimates that by 2029 around 1.5 million adults who are not British citizens could be receiving Universal Credit, while approximately 215,000 could be receiving PIP.

The party had previously promised to prevent foreign nationals from claiming Universal Credit, but its latest announcement goes significantly further.

One of the biggest obstacles to implementing the policy would be the status of EU citizens who were living in Britain before Brexit.

People with settled status generally have an indefinite right to live, work and study in the UK after completing five years of continuous residence. Their rights are protected under the Brexit arrangements agreed between Britain and the EU.

Removing access to benefits for this group could therefore require the UK to renegotiate parts of that agreement.

It could also lead to consequences for British citizens living across the European Union if EU countries respond by restricting their access to welfare.

Figures published in 2025 showed that more than one million Universal Credit claimants were born outside the UK, including around 700,000 EU citizens who arrived before Brexit and have the right to live and work in Britain.

Reform says it has already accounted for the possibility of retaliation from the EU, estimating that around £500 million could be needed if British expatriates return to the UK and claim benefits.

Reform MP Danny Kruger defended the policy, arguing that welfare should ultimately be the responsibility of the country whose citizenship a person holds.

He said he would understand if European countries responded by applying the same principle to British citizens living abroad.

Asked what this could mean for British people in Europe who currently receive disability support, Kruger said they could return to Britain or the government could potentially negotiate arrangements allowing UK disability benefits to be paid overseas.

Reform’s welfare overhaul would also place new responsibilities on employers.

Businesses with more than five employees would be required to purchase “return to work cover”, an insurance policy designed to fund the first two years of support after an employee is signed off sick.

Reform says the proposal is based on the system used in the Netherlands and would give employers a stronger incentive to make workplace adjustments and help employees return to work rather than entering the disability benefits system.

The party says it would reduce employers’ National Insurance contributions to help offset the additional cost.

Asked whether the policy could place an extra financial burden on businesses, Jenrick insisted that “nothing that we’ve outlined today will adversely affect businesses”.

Labour has strongly criticised the proposals, warning that they could reopen years of disputes with the European Union.

The party said Reform’s plans would mean “plunging the UK back into years of Brexit renegotiations and stripping support from potentially millions of people who have lawfully lived, worked and paid taxes in Britain for years, and in many cases decades”.

Conservative shadow pensions secretary Helen Whately said voters wanted welfare spending brought under control and abuse of the system tackled, while protecting the dignity of people with serious disabilities.

The Liberal Democrats argued that fixing the NHS and social care system would be a more effective way of reducing Britain’s benefits bill.

The Greens accused Reform of targeting some of the most vulnerable people in society rather than raising taxes on the wealthiest.

They said it was “cowardly to take from the most defenceless when we should be taxing the super wealthy including those who are in the privileged position of accepting £5m donations”.

The comment was a reference to the £5 million gift received by Reform leader Nigel Farage before he became an MP, which is currently being investigated by the parliamentary standards watchdog.