Home Secretary Shabana Mahmood has confirmed that Labour’s forthcoming asylum bill will include provisions barring most migrants from accessing means-tested benefits until they become British citizens. Speaking to The Independent, Mahmood argued that “settling in Britain is a privilege, not a right,” and said the measure would create a stronger incentive for economic contribution while curbing what ministers call “pull factors” in the asylum system.
The policy—expected to be tabled in Parliament before Christmas—will dovetail with the new ‘earned settlement’ model, effectively extending the ‘no recourse to public funds’ (NRPF) condition for up to ten years or longer. Critics, including the Refugee Council and business groups employing lower-paid staff, warn that locking migrants out of Universal Credit and housing support could drive destitution and push working families into the informal economy.
![Government signals benefits ban for non-citizens in latest asylum crackdown]()
For global mobility managers, the headline risk is talent attrition. Surveys by Fragomen show that access to Britain’s social-security safety net is among the top five factors in location choice for mid-level professionals with dependants. Internal mobility policies may need to include hardship allowances or private insurance to mitigate the cut-off.
Practically, employers should prepare for increased demand for salary advances or loans, review relocation packages to include private healthcare and housing stipends, and brief assignees on the extended NRPF rules. Immigration advisers also caution that any benefit claim—however small—could lengthen the road to ILR under the consultation published this week.
The bill’s second reading is pencilled in for early December, with Labour commanding a 90-seat majority. Unless significant amendments are forced in committee, the benefits ban could become law in Q1 2026 and apply to visas issued after April 2026.
The policy—expected to be tabled in Parliament before Christmas—will dovetail with the new ‘earned settlement’ model, effectively extending the ‘no recourse to public funds’ (NRPF) condition for up to ten years or longer. Critics, including the Refugee Council and business groups employing lower-paid staff, warn that locking migrants out of Universal Credit and housing support could drive destitution and push working families into the informal economy.
For global mobility managers, the headline risk is talent attrition. Surveys by Fragomen show that access to Britain’s social-security safety net is among the top five factors in location choice for mid-level professionals with dependants. Internal mobility policies may need to include hardship allowances or private insurance to mitigate the cut-off.
Practically, employers should prepare for increased demand for salary advances or loans, review relocation packages to include private healthcare and housing stipends, and brief assignees on the extended NRPF rules. Immigration advisers also caution that any benefit claim—however small—could lengthen the road to ILR under the consultation published this week.
The bill’s second reading is pencilled in for early December, with Labour commanding a 90-seat majority. Unless significant amendments are forced in committee, the benefits ban could become law in Q1 2026 and apply to visas issued after April 2026.
