Reform UK has unveiled proposals to prevent foreign nationals from receiving most welfare benefits if the party forms the next British government.
The proposed changes would affect a wide range of payments, including Universal Credit, housing support, pension credit, child benefit, jobseeker’s allowance, childcare assistance and disability payments.
Limited exceptions would remain for schemes such as compensation for members of the Armed Forces and pensions for war widows.
The party’s economic affairs spokesman, Robert Jenrick, said the current welfare system placed an unfair financial burden on British taxpayers.
He argued that public funds should be prioritised for British citizens.
Reform estimates the measures could generate savings of about £21 billion annually within five years.
It also claims its wider welfare reforms could reduce government expenditure by approximately £50 billion each year.
The proposals would have significant implications for EU citizens living in Britain under settled status.
Such residents currently have indefinite rights to remain, work and study in the country.
Reform acknowledges that implementing its policy could therefore require changes to the post-Brexit agreement between Britain and the European Union.
The move could also affect British citizens living elsewhere in Europe if EU governments respond by restricting access to their own welfare systems.
Government figures released last year indicated that more than one million Universal Credit recipients were born outside Britain.
About 700,000 were EU citizens who had moved to the UK before Brexit and retained residency and employment rights.
Reform has estimated that a possible return of British citizens from European countries could cost the Treasury about £500 million if reciprocal welfare arrangements were withdrawn.
The party is also proposing a compulsory community-work programme for people considered capable of employment who have remained on benefits for more than a year.
Under the plan, eligible recipients would undertake up to 20 hours of weekly community service arranged by local authorities.
Duties could include maintaining public spaces, improving parks, carrying out minor repairs and assisting at libraries and community centres.
Failure to participate adequately could result in financial penalties or reductions in welfare payments.
Reform has separately pledged to replace the Personal Independence Payment system and introduce a different approach to disability support.
Another element of the package would require companies employing more than five people to purchase insurance covering the initial two years after an employee is declared medically unfit for work.
The party says the proposal is inspired by arrangements in the Netherlands and would encourage employers to help workers return to employment.
Reform says employers would receive relief through reductions in National Insurance contributions to compensate for the additional insurance requirement.
Labour criticised the proposals, warning that they could trigger renewed negotiations with the EU while withdrawing assistance from large numbers of people who have lived and contributed to Britain for many years.
The Conservative Party said the priority should instead be reducing unnecessary welfare expenditure, tackling abuse and protecting people with serious disabilities.
The Liberal Democrats argued that improving healthcare and social care would be essential to reducing pressure on the welfare budget.
The Green Party accused Reform of targeting vulnerable people rather than increasing taxation on wealthy individuals.
Its criticism referred to a £5 million donation received by Reform leader Nigel Farage, which is currently the subject of scrutiny by the parliamentary standards watchdog.
The British government expects welfare expenditure in Great Britain to reach approximately £322 billion this year, equivalent to 10.6% of the country’s economic output, with pension-related spending accounting for slightly more than half of the total.
By: Magdalene Agyeiwaa Sarpong