UK Immigration Rules Shift Under Shabana Mahmood's Latest Plans 2026

UK immigration rules are set to change under Shabana Mahmood's latest plans, with the Home Secretary watering down some of last year's proposals after backlash from Labour MPs and cabinet colleagues. The revised package still represents a radical hardening of settlement rules, making lower-income workers wait longer for indefinite leave to remain (ILR) while higher earners find it easier.

What was proposed before the changes?

Under Keir Starmer, the home secretary was tasked with driving down net migration and had drawn up proposals to tighten the criteria for settling in the UK. The original plan would have forced many low-paid workers, including care workers, to wait 15 years before applying for ILR, despite having arrived expecting a five-year wait.

The new norm for most workers will be a 10-year wait. This shift reflects a compromise between reducing migration and addressing labour shortages in key sectors.

How did the proposals change?

On Monday, Mahmood scrapped the 15-year wait for lower-paid workers. She went further, announcing that care workers earning at least £25,000 and who arrived before May 2025 would be eligible for ILR after five years.

This concession aims to retain essential workers in the care sector, which has faced chronic staffing gaps. However, the overall package still makes it harder for many to settle permanently.

What does this mean for workers?

The changes will delay settlement for many workers on lower incomes, who now face a 10-year wait instead of five. Higher earners may qualify sooner under new salary thresholds.

• Lower-paid workers face longer waits for ILR, impacting financial planning and family life.
• Care workers who meet the salary and arrival date criteria can still settle after five years.
• Higher earners benefit from faster routes to settlement.
• Employers in sectors reliant on migrant labour may need to adjust recruitment and retention strategies.
• Net migration is expected to fall as a result of the tightened rules.

How do the new rules compare?

The table illustrates the uneven impact: while some care workers retain the five-year path, most lower-paid workers face a doubling of their wait.

Why does this matter for businesses?

These changes create uncertainty for employers who rely on migrant workers, particularly in social care, hospitality, and agriculture. Businesses may struggle to retain staff who now face longer waits for settlement, affecting morale and long-term planning.

Moreover, the salary threshold for care workers (£25,000) may be challenging for some employers to meet, potentially exacerbating staff shortages.

What to watch next

Parliamentary scrutiny of the proposals is expected, with further details on higher-earner routes to be clarified. The government must balance migration control with economic needs.

As Shabana Mahmood hints at softer immigration rules for UK workers, the political debate continues. For a deeper look at the cabinet divisions, see our analysis of the cabinet split over Mahmood's immigration plans.

The care sector remains a flashpoint. While UK immigration rules soften for care workers in a cabinet U-turn, many questions remain about implementation and enforcement. The background to this story is set out in Shabana Mahmood Hints at Softer Immigration Rules for UK Workers. A related thread runs through Cabinet Split Deepens Over Shabana Mahmood Immigration Plans. Earlier coverage in Shabana Mahmood as Chancellor: What Business Leaders Think shows how the argument developed.

Business leaders are also watching Mahmood's broader political trajectory. With speculation that she could become chancellor in a Burnham cabinet, her immigration stance will be closely scrutinised. Our report on Mahmood as chancellor: what business leaders think explores this further. A closer look at the same subject appears in Shabana Mahmood as Chancellor: What Businesses Need to Know. Anyone following the wider picture can start with Shabana Mahmood Urges Police to Curb Far-Right Protests. The same theme surfaces in Shabana Mahmood Frontrunner for Chancellor in Burnham Cabinet, which takes a different angle.

For those planning ahead, understanding what businesses need to know about Mahmood as future chancellor is essential, as immigration policy may shift again. Finally, her focus on law enforcement cooperation is also relevant: Mahmood's EU talks on UK law enforcement cooperation could impact visa and security arrangements. Context on how this played out before sits in Shabana Mahmood EU Talks: UK Law Enforcement Cooperation. A companion piece, Shabana Mahmood as Future Chancellor: What Businesses Need to Kno, approaches the same subject from another angle.