Announcing the changes in the Commons, Mahmood said: “Migration will always be a vital part of Britain’s story.
“But the scale of arrivals in recent years has been unprecedented.”
Home Office figures show net migration added 2.6 million people to UK population between 2021 and 2024.
Because of this, settlement grants are also expected to spike over the next five years, with around 1.6 million people forecast to settle between 2026 and 2030.
Currently, most work and family visa holders can apply for settlement after five years.
Under the proposed changes the new baseline will rise to 10 years.
But some groups, including those who arrived on post-Brexit health and social care visas, the criteria will be increased to 15 years, with the additional penalties for those who have claimed benefits.
Instead, ministers plan to introduce an “earned settlement” system, requiring migrants to demonstrate social integration, economic contribution and good “character” before being granted settled status.
Settlement, also known as Indefinite Leave to Remain (ILR), allows someone to live in the UK permanently, work without restrictions and access public services. It is also a key step towards British citizenship.
A consultation on the planned changes will run until 12 February.
