KEY POINTS

• Some foreign care workers will retain the five-year route to UK settlement.

• The number of people affected by longer waiting periods falls from 799,000 to 517,000.

• Mahmood says the revised policy will save billions, but has not disclosed its projected cost.

UK Home Secretary Shabana Mahmood has declined to disclose the cost of revised immigration plans that will allow some foreign care workers already living in the country to qualify for permanent settlement after five years.

Mahmood said the government would still achieve savings worth billions of pounds because migrants in other sectors would face longer waiting periods before qualifying for settlement and accessing certain benefits.

The revised policy follows criticism of her original proposal to double the standard settlement waiting period for most migrants from five to 10 years, with some facing waits of up to 15 years.

Revised rules ease restrictions for care workers

Under the revised plans announced on Monday, foreign care workers who arrived in the UK before May 2025 and earn at least £25,000 annually will retain the right to qualify for settlement after five years, alongside some other eligible groups.

Those who do not meet the criteria will be able to apply for a new five-year visa before seeking permanent settlement.

The changes represent a significant adjustment to Mahmood’s original proposal, which would have delayed settlement for an estimated 799,000 people.

Under the revised arrangements, that figure has fallen to approximately 517,000, although many migrants already living in the UK will still have to wait longer than five years.

The exact waiting period will depend on factors including income and whether individuals entered the country legally.

Minister promises billions in savings

Speaking on BBC Radio 4’s Today programme, Mahmood said the detailed financial implications would be published when the Home Office presented the changes to Parliament.

She maintained that the revised policy would generate savings worth billions of pounds for the Department for Work and Pensions by reducing future benefit claims.

Mahmood argued that some care workers who were no longer working in the sector could otherwise have qualified for settlement after five years and subsequently claimed benefits.

Under the revised rules, she said, those individuals would have another opportunity to contribute to the economy before qualifying for permanent residency.

In March, the Home Office estimated that the net lifetime cost of care workers and their adult dependants expected to settle between 2026 and 2030 would reach £10 billion under the existing rules.

However, the government has not yet disclosed how much its revised policy is expected to save.

Political parties criticise policy changes

The Conservatives have described the revised plans as a U-turn and warned that they could cost the state billions of pounds.

Shadow Home Secretary Chris Philp blamed opposition from Labour ministers and what he called the party’s “open-borders left” for the changes.

Reform UK leader Nigel Farage also accused Mahmood of retreating from her immigration promises at the first sign of political pressure.

The Liberal Democrats said the government’s reforms were unravelling, while the Green Party’s Siân Berry criticised the revised requirements as additional barriers for migrants.

Mahmood rejected the characterisation of the changes as a U-turn, saying a public consultation had produced a package that struck the right balance.

Labour divisions over settlement rules

The original proposal had also attracted criticism from within the Labour Party because it would have changed the rules for migrants already living and working in Britain.

Housing Secretary Angela Rayner argued that changing the requirements retrospectively amounted to moving the goalposts. Other Labour MPs warned that the approach could worsen skills shortages, particularly in the care sector.

Mahmood also declined to say whether Prime Minister Andy Burnham had instructed her to change course. She had introduced the original proposals in November under Burnham’s predecessor, Sir Keir Starmer.

Indefinite leave to remain, commonly known as settlement, allows eligible migrants to live, work and study in the UK without a time limit. It can also provide access to benefits where eligibility requirements are met and allow individuals to apply for British citizenship.