Home Business NewsFarage unveils sweeping welfare cuts in bid to slash £330bn benefits bill

Farage unveils sweeping welfare cuts in bid to slash £330bn benefits bill

3rd Jun 26 12:07 pm

Nigel Farage has set out plans for the most extensive overhaul of Britain’s welfare system in decades, promising deep cuts to the benefits bill while tightening eligibility rules for UK claimants and foreign nationals.

The Reform UK leader said his party would deliver the “biggest cuts to the benefits bill ever seen”, as he placed welfare reform at the centre of his economic pitch to voters, arguing the current system has become “unaffordable” and increasingly distorts incentives to work.

The proposals come against a backdrop of surging welfare spending, with more than 24 million people now receiving some form of support from the Department for Work and Pensions.

Total spending on benefits and social security is forecast to reach around £330bn this year — broadly equivalent to the entire annual income tax take.

Reform UK argues that without radical intervention, the system risks becoming unsustainable, with rising health-related claims and long-term dependency driving costs higher.

At the centre of the plans is an attempt to strip foreign nationals of welfare entitlements after a three-month notice period — a move the party claims could save up to £10bn a year.

The proposal would eventually extend to EU citizens with settled status, placing it on a potential collision course with elements of the Brexit withdrawal agreement.

The policy would affect a significant proportion of claimants, with around one in ten universal credit recipients estimated to be in this group. Reform also plans to increase the immigration health surcharge, charging non-British nationals more for access to NHS services.

Experts have warned the measures could trigger legal and diplomatic repercussions, particularly from the European Union, which could respond by challenging parts of the post-Brexit settlement or wider trade arrangements.

Reform’s Treasury spokesman, former Conservative Cabinet minister Robert Jenrick, has suggested the party has identified up to £40bn in potential savings through tighter eligibility checks, reductions in fraud and administrative reform across the welfare system.

Another major plank of the policy focuses on disability benefits. The party has pledged to end Personal Independence Payments (PIP) for claimants assessed as having “non-serious anxiety cases”, instead directing them into a fast-track employment programme.

PIP currently provides up to £194.60 per week to help with additional costs arising from long-term physical or mental health conditions. Reform argues the system has expanded too broadly and requires stricter, face-to-face reassessment procedures to ensure support is targeted at those with the greatest need.

The party is also proposing changes to the Motability scheme, restricting access to non-luxury vehicles and tightening eligibility to those with clear mobility requirements.

Disability rights groups are expected to strongly oppose the reforms, warning that changes to eligibility criteria could leave vulnerable claimants without vital support.

The policy announcement marks a significant escalation in Reform UK’s economic agenda, positioning welfare reform as a central dividing line in British politics ahead of the next general election.

For supporters, the proposals represent long-overdue restraint on a system they argue has expanded beyond control. For critics, they amount to a sharp reduction in the social safety net, risking penalising some of the most vulnerable in society.

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