Reform UK has pledged to slash £50bn from the welfare bill by restricting benefits for foreign nationals and people with disabilities if it wins the next general election. The party proposes banning all foreign nationals from claiming almost all forms of welfare, including housing benefit, jobseeker’s allowance, and disability benefit, with exceptions only for war widows’ pensions and armed forces compensation. This would save £21bn annually by the fifth year. The policy extends beyond earlier proposals targeting universal credit.

The party also plans to overhaul disability benefits, replacing Personal Independence Payments (Pip) and the health element of universal credit for working-age adults with a new 'health security allowance' for severe cases. This affects around 2.89mn people and aims to save £22bn. Reform UK criticized the current system as encouraging dependency, proposing new 'disability support accounts' managed by councils.

Labour dismissed the proposals as 'fantasy economics,' accusing Reform of distracting from controversy over Nigel Farage's £5mn donation from crypto tycoon Christopher Harborne. All major parties boycotted Farage's recent by-election victory in Clacton. Meanwhile, Labour under Prime Minister Andy Burnham has gained ground in polls and continues its own welfare reforms.