Will Brits in Spain Lose Benefits Under Reform UK Proposals?

Published: August 20, 2026, 8:37 pm

A controversial policy proposed by Nigel Farage’s Reform UK has sparked intense debate over the future of welfare access for foreign nationals in the United Kingdom, alongside concerns of potential retaliatory measures affecting British expats living across the European Union, particularly in Spain. Under the populist party's plans, almost all non-British residents would be excluded from the UK's welfare state if the party wins power in the next general election, scheduled for 2029.

The proposed crackdown would block foreign nationals from accessing major welfare payments, including universal credit, housing benefits, pension credit, jobseeker's allowance, child benefits, free childcare, and disability benefits. Reform UK estimates this sweeping overhaul would save British taxpayers £21 billion per year by 2029. The restriction would apply to all foreign nationals, including European Union citizens who hold settled status in the UK.

The party has outlined only limited exceptions to the ban, which would include individuals who have served in the armed forces and those receiving contributory state pensions after paying into the system. Highlighting the party's stance, Reform's economics spokesperson, Robert Jenrick, stated, "The welfare state is there for Britain. No British citizenship, no entitlement."

While the ban would directly impact many of the 13 million foreign nationals residing in the UK, critics and analysts suggest it could also trigger severe consequences for British citizens living abroad. The core of the argument is that Reform UK's proposed restrictions would breach the post-Brexit Withdrawal Agreement, which legally protects the reciprocal and equivalent rights of both EU and UK nationals who established residency before the UK left the bloc.

Ripping up these protections could force Brussels to scrap and renegotiate the Withdrawal Agreement. It has been suggested in the British press that the EU might respond by implementing a tit-for-tat welfare ban on British citizens living in Europe. Reform UK has acknowledged this possibility, proposing to set aside £500 million to assist returning British citizens who might have their benefits withdrawn by EU member states.

Speaking on BBC Breakfast, Reform's Danny Kruger expressed understanding of potential European countermeasures, stating, "So I'd understand if the Europeans decided to apply the same principle that we are and to deny our nationals access to their welfare system and we will pay for that ourselves."

In response, a spokesperson for the governing Labour Party criticized the proposal, warning that "these plans would mean ripping up the UK’s Withdrawal Agreement with the EU, plunging the UK back into years of Brexit renegotiations."

Despite the political rhetoric, advocacy groups representing British citizens in Europe believe a retaliatory response from Brussels is highly unlikely. Lisa Burton, Vice Chair of Bremain in Spain, argued that fears of EU retaliation against British migrants are unjustified. "The EU would not retaliate by withdrawing benefits from UK citizens living in the EU because not only would such a move be entirely contrary to the EU’s ethos, but it is also explicitly prohibited by the Withdrawal Agreement," Burton said. She characterized the proposal as "yet more sabre-rattling by Reform UK, announcing another fantasy policy designed to create a wedge issue and demonise migrants." However, she noted that such proposals still cause anxiety, bringing back "uncomfortable memories" of British expats being used as "political footballs."

Nigel Aston, head of the advocacy group Eurocitizens, described the welfare ban plans as "deeply worrying," noting that any breach of an international agreement could lead to countermeasures. However, he emphasized that "all this is speculative without Reform forming a government." Aston suggested that while individual EU member states might attempt to retaliate, the European Commission would likely intervene to strike down any such state-level reprisals.

The European Union has not released an official response to the proposals. Because Reform UK is an opposition party and not the sitting government, Brussels typically refrains from commenting on its policy platforms.

The potential fallout of such policies affects a significant population. According to the UK Office for National Statistics, approximately 1.3 million British citizens live across the 27 EU member states, though Eurostat estimates the figure is closer to 800,000. Spain hosts the largest British expat population in the EU, with estimates ranging between 280,000 and 420,000 people depending on registration records.

In Spain, the vast majority of major social benefit recipients—around 80 to 83 percent—are Spanish nationals. While some British expats do access the Spanish welfare system, most are retirees whose primary connection to state services is through Spain's public healthcare system. Under the Withdrawal Agreement, British residents in Spain are guaranteed equal access to social security, healthcare, unemployment benefits, and pensions under the same conditions as EU citizens. Those who arrived after Brexit can also access these services by contributing to the country's social security system. Analysts suggest it is highly improbable that any Spanish government would seek to penalize its British resident population in response to a future Reform-led UK administration.

Photo: Collected