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Settled status is given to those who have been living in the UK for a continuous five-year period.
Under the EUSS, those who were living in the UK before Brexit but had been here for less than five years are given pre-settled status, but will subsequently become eligible for settled status if they stay.
Speaking to The Times, who reported the figures, a minister said EU citizens losing access to benefits could inflame tensions with the bloc.
They said: “The Home Office needs to get a grip of this, and quick, otherwise we could have a total disaster on our hands.”
A Government spokeswoman stated it was “working hard” to identify claimants who needed to apply.
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