Labour has been told to ban foreigners from claiming disability benefits to reduce Britain's ballooning welfare bill.
According to recent data, the cost of benefits claims by households with at least one foreign national has doubled to nearly £1billion a month.
The Conservative Party has put pressure on the Prime Minister to restrict Personal Independence Payments (Pip) and sickness top-ups to Universal Credit, which can be worth up to £1,200 a month, to those born in the UK only.
Kemi Badenoch's proposed policy creates a clear divide between the Tory position with Labour and Reform.
Kemi Badenoch's proposed policy creates a clear divide between the Tory position with Labour and Reform
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Her plans would mean Pips and all Universal Credit health top-up would be limited "to British citizens, excluding all foreign nationals".
An exception for EU citizens with settled status, a term settled under the Brexit deal, would be implemented according to the Tory leader.
Current laws allow foreign nationals to claim Pip if they have lived in Britain for two of the last three years.
These reforms are seen as the first major shift in position by the Tory leader, who has been accused by political commentators of lacking official party policies.
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Sir Keir Starmer watered down his proposed £5billion cuts to the benefits bill
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Reform UK voted against Starmer's legislation and also backed lifting the two-child benefit cap, rather than cutting welfare costs.
Sir Keir Starmer watered down his proposed £5billion cuts to the benefits bill to appease 120 backbench Labour MPs who represented a significant threat to his leadership.
The "major concessions" mean that Rachel Reeves cannot rule out filling the fiscal black hole with tax rises in autumn.
Pips, which are worth up to £750 a month, are paid to individuals who face higher living costs due to mobility issues.
Helen Whately, the shadow Work and Pensions Secretary, said that the Government’s welfare plans are in chaos
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Shadow Work and Pensions Secretary Helen Whately said: "The Government’s welfare plans are in chaos. Instead of saving money, the welfare Bill we’re voting on next week costs money.
"We’ve told them how to fix it: stop signing people off sick for mental health problems like anxiety, bring back face-to-face assessments, and only give sickness benefits to British citizens.
"If ministers had the guts to take up even one of these proposals, they could save billions – and spare the country from more tax rises this autumn."
A record 531 people per day were granted Pips for mental health problems last year, according to analysis of Government figures.
The handouts can be given to people who are in work as well as those who are unemployed
GETTYThe handouts can be given to people who are in work as well as those who are unemployed.
Individuals who are signed off with long-term sickness are categorised into one of two groups.
A payment of £423 a month on top of their Universal Credit is paid to the most severe claimants who are deemed so ill they are not expected to look for work.
More than three-quarters of claimants in 2023-24 were classed as the top bracket, with the rest required to prepare for employment and receive £158 a month.
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