By Salma El-Sakka
UK Home Secretary Shabana Mahmood has declined to specify the cost of her revised settlement plans for foreign care workers, after scaling back proposals that would have doubled the wait for permanent residency. The original plan, announced in November, aimed to save £10bn by extending the qualifying period from five to 10 years for most migrants, with some facing a 15-year wait.
Revised Settlement Rules
Under the revised policy announced on Monday, care workers who arrived in the UK before May 2025 and earn at least £25,000 a year will continue to qualify for indefinite leave to remain after five years. Other foreign care workers can apply for a new five-year visa before seeking settlement. The Home Office says just over 500,000 people will now face delays in gaining permanent residency, down from nearly 800,000 under the initial proposal. An estimated 1.9 million people are expected to settle in the UK between 2026 and 2030.
Cost Estimates and Savings Claims
Mahmood told the BBC the changes would still save "billions" because workers in other sectors would wait longer for settlement. She argued that many care workers not currently employed in care would have claimed benefits if granted settlement at five years. Home Office minister Anna Turley said the revisions would yield "at least £1bn over the next couple of years in terms of welfare savings," with further calculations pending. The Conservatives labelled the move a U-turn that would cost the UK billions.
Political Backlash and Criticism
The original proposal drew criticism from Labour MPs, including Housing Secretary Angela Rayner, who said it amounted to "changing the goalposts" for migrants already in the UK. Several MPs described the retrospective rule change as "un-British" and warned it could worsen skills shortages in the care sector. The Institute for Public Policy Research challenged the £10bn savings figure, estimating a £115bn addition to public finances under current settlement rules. Mahmood denied the revision was a U-turn, saying a public consultation produced a "transformative package" that strikes the right balance.
