Shabana Mahmood scraps cost-saving plan for care worker settlements

Home Secretary Shabana Mahmood has declined to specify the financial implications of her decision to abandon plans that would have extended the wait for foreign care workers in the UK to qualify for permanent settlement. The original proposal aimed to double the wait time from five years to ten for most migrants, with some facing a potential fifteen-year wait. The Home Office had projected that this change could save the government up to £10 billion.

The reversal comes amidst growing concerns over record levels of post-Brexit net migration, previously criticized under the term "Boriswave." Mahmood's initial stance was that delaying settlement for migrant care workers would prevent what she termed a £10 billion drain on public finances. However, facing significant backlash, she announced on Monday that care workers who arrived in the UK before May 2025 and earn at least £25,000 annually will still qualify for settlement after five years. Additionally, those who do not meet this threshold will have the option to apply for a new five-year visa, before seeking settlement.

The latest changes mean that just over 500,000 foreign care workers will now be delayed from achieving permanent residency, a significant decrease from the nearly 800,000 who would have been affected under the original proposal. The Home Office estimates that around 1.9 million people will settle in the UK between 2026 and 2030. Mahmood expressed confidence that the revised plan would still yield "billions" in savings for the Department of Work and Pensions, arguing that the cohort most likely to rely on state support consists of care workers who would have settled after five years.

Mahmood stated that detailed cost figures would be presented to Parliament when the changes are formalized. She emphasized that the new policy allows care workers the opportunity to contribute to the economy without immediately depending on state benefits, a shift she believes will ultimately benefit the UK’s financial landscape.