How many refugees receive benefits?

The government has said it will consult on measures that could mean people granted refugee status have to meet additional requirements to receive benefits. Data from the Department for Work and Pensions show that 112,000 people with refugee status were claiming Universal Credit in December 2024, equivalent to 66% of the adults with refugee status. This figure refers to individuals granted refugee status after claiming asylum in the UK, but not people who were granted refugee status via resettlement schemes.

Table 1

Group	Number in December 2024
Universal Credit claimants with refugee status	112,500
People aged 18+ with refugee status	171,200
	66%

Source: Migration Observatory analysis of DWP Universal Credit – Immigration Status and Nationality statistics, Table 1, and Home Office Migrant Journey, Table MJ_D01.

The high share of Universal Credit claimants among refugees reflects the fact they were less likely to be working than migrants who came to the UK for other reasons, such as for work or family. However, linked administrative data indicates that refugees’ employment rates improve with time spent in the UK, as they gain complementary skills, such as improved English language skills.

Our 66% estimate is comprised primarily of those granted refugee status in the past five years—that is, more recent refugees who are less likely to be employed and thus more likely to be claiming Universal Credit. This is because refugees in the UK have typically applied for settlement after five years, once they have become eligible.

It is not known what share of refugees who subsequently acquired indefinite leave to remain (ILR) claim Universal Credit, for two reasons. First, it is not possible to distinguish between people with ILR who were previously refugees from those who held other types of status. Second, the ILR figures published by the Department for Work and Pensions likely include individuals who now hold British citizenship. As a result, they will overstate the number of people with settlement who claim benefits.