The Conservative Party in the United Kingdom is urging the government to restrict access to key disability benefits for foreign nationals in a bid to reduce Britain’s growing welfare bill. Under new proposals, Personal Independence Payments (PIP) and health-related Universal Credit top-ups would be limited to British citizens only, with an exception for EU nationals with settled status.
The plan comes as the cost of welfare claims by households with at least one foreign national has reportedly doubled to nearly £1 billion per month. PIP, which can be worth up to £750 per month, is intended to support people with additional living costs due to disability or long-term health issues. In some cases, total monthly support can reach £1,200.
Conservative party leader Kemi Badenoch is expected to use a speech this week to position welfare reform as a dividing line between the Tories, Labour, and Reform UK. She will argue that only the Conservatives are willing to make tough decisions to control public spending.
Restricting PIP and health top-ups to British citizens, excluding foreign nationals except EU nationals with settled status
Mandating face-to-face assessments for all PIP claims, replacing remote evaluations that are viewed as more susceptible to abuse.
Reclassifying mental health conditions like anxiety, mild depression, and ADHD so they are no longer treated as severe under the benefits system.
These measures follow new figures showing a sharp rise in mental health-related claims. In 2023, a record 531 people per day were granted PIP for mental health conditions. Media reports have highlighted cases where PIP was awarded for conditions such as acne and writer’s cramp.
Government data also shows that more than 75% of sickness benefit claimants in 2023–24 were placed in the highest payment bracket, and those not expected to seek work receiving an extra £423 per month.
The Tory proposals follow a Labour U-turn on welfare reforms after a major rebellion from its own MPs, leaving a £5 billion gap in public finances. Chancellor Rachel Reeves has indicated that this shortfall may need to be covered through tax increases in the autumn.
Helen Whately, the Conservative shadow work and pensions secretary criticised Labour’s handling of welfare policy:
“Instead of saving money, the welfare bill we’re voting on next week costs money. We’ve told them how to fix it: stop signing people off sick for anxiety, bring back face-to-face assessments, and limit benefits to British citizens.”
However, spending on PIP and its predecessor, Disability Living Allowance, is projected to reach £28 billion annually by 2028–29. Overall, disability-related welfare spending, including Universal Credit health top-ups, is forecast to rise from £39 billion in 2023–24 to £58 billion over the same period, according to the Office for Budget Responsibility.
Badenoch is also expected to criticise Labour for potentially scrapping the two-child benefit cap, a policy introduced by the Conservatives. Repealing it would cost an estimated £3.4 billion per year.
“The Conservatives are now the only party committed to serious welfare reform,We are the only party prepared to take the tough decisions to get spending under control,”Banedoch said
Labour dismissed the Conservative proposals as politically motivated and lacking credibility. A party spokesperson said:
“These uncosted and unserious proposals from Kemi Badenoch are nothing but a desperate attempt to stay relevant. The Conservatives had 14 years to reform welfare but left a broken system.”
Labour claims it is already increasing face-to-face assessments and reducing disincentives in the Universal Credit system by adjusting health top-ups and boosting the standard allowance in real terms.
