Fury over benefits 'loophole' handing cash to thousands of migrants

Thousands of migrants have exploited a legal loophole to claim benefits they should not be entitled to, a shocking inquiry has revealed. Court rulings based on European human rights laws have forced the UK to hand over benefits such as Universal Credit and Child Benefit.

The loophole involves migrants who come to the UK on visas designed to ensure they do not become a burden on taxpayers by stating they have "no recourse to public funds". They apply to the Home Office to have this restriction lifted, by claiming they are destitute and cannot afford housing costs.

Think tank Onward, led by former Cabinet Minister Sir Simon Clarke, has exposed the practice in a new report. He said: "Britain's immigration system is a disaster - at every turn we find new incentives that draw in thousands of migrants who we all end up paying for, and who are progressively eroding our social cohesion.

"This new report shows in devastating detail how our welfare system is being further undermined by legal loopholes that allow access to benefits even before settlement is granted. This isn't compassionate - it's uncontrollable."

Those able to take advantage of the loophole include people with visas allowing them to live with family members in the United Kingdom. They are not British citizens and do not have indefinite leave to remain.

Once in the country they apply to the Home Office for a "change of condition", which removes the restriction on benefits. There are almost 4,600 applications every year and 65% of these are accepted, the investigation found. The was highest during the Covid pandemic, and 18,463 applications for benefits have been successful since the start of 2020.

Evidence applicants need to prove they are destitute, meaning they cannot afford adequate accommodation, includes documents such as bank statements or household bills.

Claimants are able to cite article 3 of the European Convention on Human Rights, which prohibits inhuman or degrading treatment, and court rulings have made it clear that the UK must pay

One case in 2024, in which the applicant cited the European Convention, stated that a "change of condition" should be granted if a migrant was at risk of becoming destitute - even if it hadn't happened yet.

Onward researcher Caroline Elsom said: "Our visa system is meant to make sure migrants coming here are able to support themselves during their stay. But creeping judicial activism under the protection of the ECHR has created loopholes that allow the path to settlement to be fully-funded by the taxpayer.

"While political attention is focussed on the asylum crisis, legal visa routes have been left wide open to abuse."

Nigerians have submitted almost double the number of "change of condition" applications due to destitution than any other nationality, followed by Pakistanis, Ghanaians, Bangladeshis and Indians, the study found.

As well as Universal Credit, those whose applications are successful might become eligible for Personal Independence Payment, Child Benefit or Pension Credit as well as access to social housing and more.

Tories said anyone who uses this loophole should be barred from staying permanently in the UK. Shadow Home Secretary Chris Philp said: "Labour's immigration system signs illegal immigrants up for benefits before they've even unpacked.

"The public can see what's happening. Article 3 is being twisted into a legal ladder for those gaming the system, the rule is flipped and the taxpayer picks up the bill. It's wrong and people know it.

"This is exactly why the Conservatives will close these back doors in our Deportation Bill. We must double the time it takes to get indefinite leave to remain, ending the automatic drift from temporary stay to permanent settlement, refuse indefinite leave to remain to anyone who has claimed benefits in Britain. It's time to end open-door dependency."

Prime Minister Sir Keir Starmer has promised to crack down on unlawful small boat crossings, after 25,000 people made the journey across the Channel so far this year. But he has also pledged to cut legal immigration after the population of England and Wales shot up by more than 700,000 in just one year, due almost entirely to arrivals from overseas.

Onward is urging the Government to repeal Labour's Human Rights Act, which enshrined the European Convention on Human Rights into UK law, and withdraw from the Convention. It is also calling for an end to visa condition changes except when local councils highlight "truly exceptional" cases that need financial support.