Reform UK has announced plans to block EU nationals from claiming universal credit, a move that experts warn could undermine the post-Brexit trade deal and trigger retaliation from Brussels. The policy, set to be unveiled by Nigel Farage on Tuesday, is part of a package the party claims would save £25bn annually, enough to cover the fiscal shortfall faced by Chancellor Rachel Reeves in next week's budget.
Under the proposals, all overseas nationals, including those with EU settled status, would lose the right to universal credit after a three-month notice period, saving an estimated £6bn a year. The party also plans to cut overseas aid by 90% to £1bn annually and nearly triple the NHS immigration health surcharge from £1,035 to £2,718 per year, raising £5bn. Other savings include £580m from deporting all foreign criminals.
However, unilaterally scrapping elements of the Brexit deal could lead to reciprocal measures against UK nationals in the EU and potential trade restrictions. Labour criticised the plans, with a spokesperson saying: 'Nigel Farage's fantasy numbers don't add up, and he'd leave British taxpayers footing a hefty bill. Farage is happy to slap British shoppers with higher prices by risking a trade war with Europe.'
Reform's head of policy, Zia Yusuf, defended the proposals, stating: 'Labour has a choice. They can either go ahead and raise taxes on British citizens or they can enact our proposals which put British people first and ask foreign nationals to bear the brunt of the black hole.'
