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UK spends roughly £23bn on benefits and pensions for non-British residents

A Centre for Social Justice report says the UK government paid about £23bn on welfare and pensions for foreign nationals in 2025, sparking debate over immigration and benefit policy.

Research by the Centre for Social Justice puts UK spending on benefits, pensions and child-related support for non-British nationals at about £23bn in 2025, including £14.3bn for working-age benefits and roughly 1.85 million claimants. The report also notes that 400,000 foreign nationals receive the state pension, and forecasts the total bill could approach £27bn by 2030. The analysis links the rise in claims to the recent surge in net migration, which peaked at around 944,000 in the year to March 2023.

Government spokespeople reject the estimates, citing small-sample data, and point to recent proposals to extend the qualifying period for migrants to ten years. Politicians such as Ian Duncan Smith and Andy Burnham have called for reforms to restore contribution and reduce the welfare bill, while Home Secretary Shabana Mahmood faces criticism over her plans to lengthen the route to settled status.

Why it matters

The figures highlight the fiscal impact of immigration on the UK's welfare system and fuel political debate over benefit eligibility.

In this story

welfare spendingforeign nationalsimmigrationbenefitsstate pensionnet migrationsettled statuspolicy debate
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