A Reform UK government would block EU nationals from receiving universal credit, a move that would rip up the post-Brexit trade deal with Europe and risk potential retaliation from Brussels.
It is among several proposals that will be announced by Nigel Farage at a press conference on Tuesday. The party claims its measures would save £25bn a year in total – enough to cover the supposed shortfall faced by Rachel Reeves in next week’s budget.
Other proposed cost savings would involve cutting overseas aid to a maximum of £1bn a year – a 90% reduction from the current level of 0.3% of national income – and almost tripling the NHS surcharge paid by non-UK residents.
While Farage will present the package as prioritising the welfare of British nationals over non-citizens, the proposal to unilaterally junk elements of the post-Brexit deal with Brussels could affect the UK economy if it sparked reciprocal measures such as trade restrictions.
Nigel Farage claims his party’s policies would fix the country’s finances. Photograph: Andy Rain/EPA
According to a Reform statement released on Monday night, all overseas nationals – including those with EU settled status – would lose the right to claim universal credit after a three-month notice period, which the party said would save £6bn a year.
EU nationals – plus citizens from the European Economic Area and Switzerland – were able to apply for settled status under the terms of the Brexit deal, allowing access to public services and some benefits.
While Reform has described this deal as “atrocious and one-sided”, ending elements of it without negotiation could see UK nationals in the EU also face action, and possible trade measures.
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Another policy would see the health surcharge increase from £1,035 a year to £2,718, which Reform believes would raise £5bn. The party argues the current cost is “clearly too low”, and says overseas nationals used the NHS more on average.
Other elements of the claimed £25bn in annual savings include £580m that would be recouped by deporting all foreign criminals.
The plans were first reported in The Times – with Reform’s head of policy, Zia Yusuf, telling the newspaper: “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, not British citizens.
“Most British people would consider it outrageous to expect British people to pay higher taxes or see their services cut whilst their money is being spent this way.”
A Labour spokesperson said: “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 at the checkouts by risking a trade war with Europe. He’d betray working people and hammer British businesses who want to trade with the EU.”
