Refugee benefit claims skyrocket to £1.1bn but what exactly are they getting? | Personal Finance | Finance

Staggering new figures revealed £1.1billion of Universal Credit was paid last year to households with at least one claimant who is a refugee. It marks a 33% increase from 2023 and the first time this figure has breached £1billion. The DWP also highlighted that currently the proportion of claimants from refugee households also rose from 1.7% in 2023 to 1.8% in 2024.

This revelation has drawn some harsh criticism with experts linking it to the rise in asylum seekers being granted refugee status. The Telegraph noted these figures are expected to put more pressure on Sir Keir Starmer who is due to announce his plan to crackdown on migration later this month. A white paper should be revealed in the coming weeks showcasing the Government’s strategy to bring down legal migration.

The figures were revealed through a Freedom of Information request by Neil O’Brien.

The former minister said: “None of this will be fixed until we exit from this thicket of human rights law which leads to illegal immigrants being prioritised over British people who have paid in all their lives.”

In order to be eligible for benefits at all in the UK, foreign nationals need to meet the same requirements as British citizens.

The biggest difference is they will only become eligible when they have received indefinite leave to remain or refugee status.

While they are classed as asylum seekers, before getting a decision on their refugee status, they are not allowed to work.

State asylum support may provide housing or a cash allowance, with some getting as little as £6.43 per day according to Refugee Council.

This support will be withdrawn 56 days after they are granted refugee status or indefinite leave to remain.

Once the asylum support payments stop, refugees may be eligible for Universal Credit, Pension Credit, Housing Benefit or a refugee integration loan.

They will still need to meet the other eligibility requirements put forward by the DWP, such as having a National Insurance number and bank account.

Citizens Advice noted: “Once you’ve got refugee status, you’ll get permission to work in the UK – in any profession and at any skill level. If you’re not ready or able to look for work and have very little or no income, you can apply for benefits instead.”