Nigel Farage's Reform UK proposes strict immigration and welfare cuts, targeting Hong Kong BNO migrants

Nigel Farage, leader of Reform UK, has sparked debate with a bold proposal to tighten Britain’s immigration and welfare policies, claiming the measures could save the treasury up to £230 billion.

The plan includes abolishing the indefinite leave to remain (ILR) status, which allows non-citizens, including Hong Kong residents under the BNO visa scheme, to live permanently in the UK after five years and access welfare benefits. 

Scrapping permanent residency for renewable visas

Instead, Farage’s party suggests replacing ILR with a five-year renewable visa system, targeting immigrants who claim benefits without pursuing full British citizenship. The policy particularly affects those under the BNO “5+1” route, where Hong Kong residents can apply for ILR after five years and citizenship after six.

Criticism of past immigration policies

Farage has criticized the immigration policies of former Prime Minister Boris Johnson, arguing that they led to a surge in arrivals since 2019, overwhelming the welfare system. 

He highlighted concerns about non-working immigrants claiming benefits while bringing dependents, which he claims has inflated the UK’s welfare costs. 

Data from the Oxford University Migration Observatory indicates that around 430,000 non-EU immigrants currently hold ILR, while over 4.12 million EU citizens have been granted settled status post-Brexit. 

A higher proportion of EU immigrants, about 9.7 percent, receive Universal Credit compared to 2.7 percent of non-EU immigrants.

Reform UK’s policy chief, Zia Yusuf, clarified that EU settled status would not face immediate cancellation, but the party would seek to renegotiate welfare terms with the EU. 

Failure to amend the Brexit withdrawal agreement could lead to fines or trade sanctions. 

Proposed visa restrictions and new schemes

The party also proposes raising the salary threshold for skilled worker visas from £41,700 to approximately £60,000, restricting immigrants from bringing spouses or children, and requiring visa renewals to prove no reliance on welfare or public funds, alongside passing a “good character” check that screens for issues like tax evasion.

Additionally, Reform UK plans to introduce an “Acute Skills Shortage Visa” to address critical staffing gaps in sectors like healthcare.

Employers hiring overseas workers under this scheme would need to commit to training a local worker as a replacement, aiming to reduce dependence on foreign labor and boost local wages.

Political backlash and economic claims

The proposal has drawn sharp criticism from the ruling Labour Party and the opposition Conservatives. 

Labour’s Chancellor, Rachel Reeves, dismissed the £230 billion savings estimate as outdated and questioned the plan’s viability, particularly if EU immigrants are excluded. 

Conservative Shadow Home Secretary Chris Philp accused Reform UK of recycling Conservative policies without practical details, arguing that while low-skilled immigration strains public services, a contribution-based system is needed rather than broad deportation rhetoric. 

Despite skepticism about the financial projections, Farage insists the actual savings could be even higher, fueling ongoing political debate as the UK approaches an anticipated general election in three years.