WASHINGTON, D.C. — The British Home Secretary, Mahmood, announced on Tuesday that the government will abandon its draft settlement scheme for migrant care workers, replacing it with a revised proposal that shortens the residency period required for permanent status.

The new policy reduces the qualifying continuous residence from five years to three years, affecting an estimated 120,000 care workers currently on temporary visas. Analysts say the change could ease staffing shortages in a sector that contributes £23 billion to the UK economy, but it also raises questions about long‑term investment as foreign capital in UK care services fell 12 % last year.

“We must ensure the care sector remains viable while protecting the rights of migrant workers,” Mahmood said in a press briefing. “This streamlined route to settlement aligns with our broader immigration reform and supports families who rely on these essential services.” Jane Doe, director of the Care Workers Union, warned that the previous plan “would have imposed unrealistic costs on employers and jeopardised patient care.”

Global investors are watching the shift closely. The European Investment Bank, which recently pledged €500 million for UK health‑care projects, noted that policy certainty is a key factor in allocating capital. A London‑based asset manager estimated that the revised settlement rules could unlock up to £1.2 billion of new private funding for care facilities over the next five years.

Opposition parties have criticised the timing, arguing the government is using the settlement issue to distract from broader immigration debates. Parliamentary committees are set to review the proposal next month, with a vote expected before the end of the fiscal year.

Key Takeaways

• The residency requirement for permanent status is cut from five to three years.
• Approximately 120,000 migrant care workers are directly impacted.
• Potential infusion of £1.2 billion in private investment into the UK care sector.

While the revised plan aims to balance labour market needs with immigration control, its ultimate success will depend on parliamentary approval and the ability of care providers to translate policy certainty into tangible hiring and investment outcomes.