Nigel Farage is facing criticism for potentially sparking a trade dispute with the European Union by proposing to cut off European citizens from accessing benefits in the UK.
The Reform UK leader announced plans to stop Universal Credit payments for EU nationals, aiming to save approximately £6 billion. However, this move could violate the Brexit agreement that permits EU citizens with settled status to receive specific benefits, leading to a possible conflict with the EU.
Farage acknowledged that he has not engaged in discussions with EU officials due to his lack of popularity in Brussels. He also refrained from disclosing whether he had assessed the repercussions of a trade war.
In response to Farage’s proposal, Anna Turley MP, Chair of the Labour Party, accused Farage of inviting a trade conflict with Europe that could result in increased prices for consumers. Farage defended his stance on limiting council tax increases, emphasizing the importance of keeping hikes in line with inflation.
The Reform UK leader further expressed his willingness to align with the government’s reforms on asylum policies. Farage criticized the EU relationship as being unbalanced and highlighted the significant costs associated with the benefits system, proposing substantial cuts, including for EU citizens.
Reform UK’s policy head emphasized the need to shield British citizens from bearing the brunt of budgetary measures, suggesting that halting Universal Credit payments to foreign nationals could generate savings for the Treasury. Additionally, Reform UK outlined a three-month notification period for EU citizens with settled status before ceasing benefits.
Despite the potential financial gains, Farage’s plan to revoke benefits for EU citizens under the Brexit treaty may trigger a trade conflict with the EU, causing price hikes in UK stores. Farage is set to address these issues at a press conference in London.