New analysis of the Labour government's Autumn Budget suggests that close to 350,000 foreign-born families could become eligible for increased welfare payments. The policy change, which involves lifting a benefits cap, has ignited a fierce political debate about the allocation of public funds.
Budget Change Sparks Political Backlash
The research, conducted by Conservative MP Nick Timothy, indicates that the decision made in the Autumn Budget under Chancellor Rachel Reeves will primarily impact migrant households. Timothy expressed strong criticism, stating: "You have to ask whose side this Government is on." He accused the government of breaking tax promises and argued that working families would ultimately bear the cost of increased welfare spending.
"And the beneficiaries, as this research shows, will disproportionately be immigrant families who have never paid into the system," he added. The figures show that almost 200,000 of the potentially affected families originate from just ten countries.
Key Beneficiaries and Internal Government Concerns
The data highlights the nationalities with the highest number of families that could benefit. According to the analysis:
- 59,000 families from Pakistan
- 26,000 families from Bangladesh
- 22,000 families from Nigeria
A senior Government source acknowledged internal apprehensions about the policy's reception, noting there was "definitely concern that Reform UK and others would highlight that and that we would be criticised for it." However, the source confirmed that "the cap was lifted in its entirety because of internal political pressure — MPs wanted it."
Reform UK and Government Response
Zia Yusuf, policy chief for Reform UK, condemned the findings, labelling them a "disgrace." He argued that the data, though partially obscured, clearly shows foreign national families, many not in work, as the primary beneficiaries. "It is totally unfair for British families and taxpayers to have to pay for that. You should have to put in to take out of our system," Yusuf stated.
In response, a Government spokesman offered a different perspective, pointing out that "overall, the proportion of Universal Credit claimants who are foreign nationals has fallen since October 2024." The spokesman also announced a future consultation, saying the government "will consult on restricting migrants’ access to benefits if they are not making an economic contribution to the UK."
The announcement, made in the Autumn Budget of 2026, continues to fuel discussions on welfare, immigration, and fiscal responsibility within UK politics.
