Hundreds of migrants are signing up for benefits every day as claims by foreign nationals hit almost 1.3 million.
In October, 472 migrants began claiming Universal Credit - an increase of 6.7 per cent in a year.
The overall number of migrants receiving the benefit payment meanwhile rose to 1.27 million, according to The Telegraph, citing figures from the Department for Work and Pensions (DWP).
Universal Credit is a payment to help with living costs and is available for people in work who are on low incomes, as well as those who are out of work or cannot work.
There were 8.3 million people in Britain overall receiving the payment in October, a rise from 7.2 million at the same point last year, data from the DWP showed.
A Government spokesman said: “The number of Universal Credit claimants across all categories – including British nationals – has been increasing as we have invited tens of thousands of people each month to move from legacy benefits onto the modernised system.
“Overall, the proportion of claimants in this country who are foreign nationals has fallen since October 2024."
As part of a series of reforms to the country's asylum system announced by Shabana Mahmood this week, migrants who have a right to work in the UK and can support themselves, but do not do so, could be denied benefits.
A total of 8.3 million people in Britain overall were claiming Universal Credit in October
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In what has been billed as the largest overhaul of asylum policy in modern times, the Government said it "expects those who are arriving or returning to the UK to seek work".
It said it is exploring a "change" to taxpayer-funded benefits to "prioritise access for those who are making an economic contribution".
"This could see additional criteria that migrants have to meet to receive benefits and actions they need to take in order not to lose them," it stated today.
"A consultation on this question will take place in 2026."
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Shabana Mahmood has this week set out a number of reforms to Britain's asylum system including tightening rules around benefits
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Under the Home Secretary's plans there will also be a tightening of settlement rules.
It will mean refugees will not be able to get settled status until they have lived in the UK for 20 years, a huge increase on the current five years.
Ms Mahmood has also said she is considering "a big increase" in payments for migrants to return voluntarily to their home countries.
Under current rules, the UK offers payments of up to £3,000 for some people with no right to remain in the country to return home.
The Home Secretary has directed officials to "pilot a small programme" of increased payments, "just to see how it changes behaviour".
The Birmingham Ladywood MP has insisted the policy represents "value for money" - but admitted it "sticks in the craw" for Britain's hard-pressed taxpayers.
She told MPs on Monday it was the "uncomfortable truth" that Britain's generous asylum offer, compared to other European countries, is drawing people to UK shores and for British taxpayers the system "feels out of control and unfair".
“The pace and scale of change has destabilised communities. It is making our country a more divided place,” Ms Mahmood said.
“There will never be a justification for the violence and racism of a minority, but if we fail to deal with this crisis, we will draw more people down a path that starts with anger and ends in hatred.”
She said the UK was an “open, tolerant and generous” country but “to maintain the generosity that allows us to provide sanctuary, we must restore order and control”.
A series of Labour MPs have challenged Ms Mahmood over the plans, which they say echoes the rhetoric of Nigel Farage’s Reform UK.
Former Labour frontbencher Richard Burgon said the policy “scrapes the bottom of the barrel” and was “a desperate attempt to triangulate with Reform”.
Ian Lavery said that when the Tories and Reform are backing the policies “is it not time to question whether we’re actually in the right place?”.