Migrants Settlement Rights Tied To Economic Contribution Under Labour Proposals

Migrants seeking permanent residency in the United Kingdom will soon face significant changes to the rules if Labour’s proposed reforms are enacted. In her inaugural speech as Home Secretary at the Labour Party conference, Shabana Mahmood is set to declare that migrants must demonstrate meaningful contributions to the UK in order to obtain indefinite leave to remain. The changes aim to reshape the route to long-term settlement, linking it tightly to both economic and societal input. The current five-year wait for eligibility will be extended to a minimum of ten years in most cases, unless applicants can prove a particularly significant positive impact—either financially or through voluntary and charitable engagement.

Economic independence is set to become a central pillar of Labour’s approach. Migrants must pay national insurance, sustain themselves without claiming benefits, and show clear records of volunteering in their communities. A high standard of English language proficiency will also be expected, and a clean criminal record is non-negotiable. Mahmood is understood to be firm on exclusions for those with criminal backgrounds, with even lesser offences potentially delaying eligibility rather than excluding applicants altogether. The specifics of which crimes constitute outright disqualification versus those that result in delays are anticipated in an upcoming consultation.

The changes do not end there. Labour plans to introduce a new points-based system, where applicants may face even longer waits if they fail to meet certain thresholds. Financial contribution, employment, voluntary work, and English skills are factors to be scored. Those providing less benefit to society, relying on state support, or encountering legal issues risk outright removal from the UK upon visa renewal. The approach aims to ensure that state welfare is available to those actively contributing to the economy, shaping a more sustainable social safety net.

Significant exemptions exist within these proposals. Those fleeing crisis as part of designated government schemes, such as Hong Kongers and Ukrainians, will not be subjected to the extended 10-year rule. The reforms are likely to be retroactive, affecting hundreds of thousands who currently expect indefinite leave to remain under the five-year rule. Estimates suggest that by 2040, 810,000 foreign nationals will seek settlement. Of these, a substantial 78 per cent, or 627,000, are currently earning below the UK average salary of £37,430.

This policy shift places Labour closer to the Tories, who earlier this year pushed for settlement rights only after 10 years of clear net contribution. It stands in direct opposition to the proposals from Reform, which would rescind settlement for existing non-EU residents unless they meet even stricter standards. Labour leader Sir Keir Starmer has branded the Reform policy as divisive and damaging, highlighting the contributions migrants already make to sectors such as healthcare and education.

Labour’s approach is rooted not only in economics but also in social cohesion. Mahmood cites her family’s experience of migration, highlighting the importance of involvement beyond simple employment. She asserts that patriotism must not morph into exclusionary nationalism, framing these reforms as a means to foster a society that remains open and tolerant while ensuring fairness to taxpayers. Precise details and a public consultation on the new settlement criteria are expected later this year, marking a significant moment for migration policy in the post-Brexit era.