Labour accused of spiralling welfare ‘out of control’ as foreign nationals handed billions in Universal Credit

Gareth Davies has accused the Labour Government of letting the welfare budget spiral “out of control” as new figures reveal the staggering amount of Universal Credit paid to foreign nationals.

Speaking to GB News, the Shadow Financial Secretary to the Treasury declared that Britons across the country will be “outraged” by the data.

According to new Department for Work and Pensions data, migrant families have taken home a record-breaking £12billion in Universal Credit claims.

Households with at least one foreign national claimed a staggering £11.9billion in Universal Credit during 2025, a 25 per cent jump compared with the £9.5billion paid out in 2024.

Of the £11.9billion total, some £7.7billion, equivalent to 65 per cent, was directed to claimants who were out of work.

The figures show that roughly one in six universal credit payments went to such households over the past year.

Reacting to the figures, Mr Davies told GB News that it is “another example” of the issues surrounding Labour’s handling of the welfare system.

Mr Davies said: “I think people across the country will be outraged by that and it’s just another example of the broader issue that we have in this country where welfare is spiralling out of control.

“We’ve now got to a position where it’s forecast to be £400billion by the end of this Parliament.”

Recalling the Conservatives’s time in Government, Mr Davies admitted he wishes his party had “gone further” in cutting the ballooning welfare bill.

He told GB News: “In the last couple of Budgets that we had in Government, we obviously cut welfare quite significantly by about £12billion.

“I wish we’d gone further, but now we’re committing to very much going further in tightening up the welfare spending.”

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Mr Davies urged the Prime Minister to “face down his MPs” and tackle the welfare spending of his Government.

He declared: “We’re urging Andy Burnham to face down his Labour MPs to make the decisions on spending when it comes to welfare so that we can relieve the pressure on businesses who actually grow our economy.

“I do not hold my breath, however, because the last time Labour tried to cut welfare, they got literally beaten down by their own MPs and had to withdraw in the same very debate that day.

“So what needs to be done is clear, but whether the Labour Government will do it is another matter.”

Home Secretary Shabana Mahmood has implemented tougher measures on foreign nationals, such as doubling the qualifying period for indefinite leave to remain from five to 10 years, with an even longer 15-year wait imposed on foreign care workers.

A Government spokesman said in a statement: “Under this Government, net migration is down by 82 per cent from its 2023 peak.

“Only people who are in the UK legally can claim taxpayer-funded benefits, of which around half are in work.

“Last November, we set out proposals to reform settlement which will double the standard qualifying period to 10 years for most migrants, with shorter routes for those who contribute most to the UK.”

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