UK immigration crackdown threatens £15 billion care sector - Bloomberg

Investing.com -- Britain’s immigration crackdown threatens its £15 billion ($20 billion) care sector, with providers warning of potential business closures, Bloomberg reported Sunday.

Migrant workers account for roughly one-third of Britain’s wider adult care workforce, according to the Work Rights Centre.

Around 280,000 workers entered the country through the Health and Care Visa scheme between February 2022 and July 2025, before the Labour government suspended the route over concerns about abuse.

Under proposed changes, existing visa holders would need to transfer to the Skilled Worker route from July 2028, potentially facing substantially higher salary requirements.

Care providers argue that funding from local authorities is insufficient to support those wages, threatening businesses already struggling with recruitment.

Further uncertainty surrounds Home Secretary Shabana Mahmood’s proposed settlement reforms, which would extend the standard qualifying period for permanent residency from five to 10 years.

The changes could prevent workers recruited in 2022 and 2023 from securing settlement before their existing visas expire.

Shweta Maulayah, managing director of care provider Maucare, warned that the restrictions could force her to downsize or sell the business.

The sector provides daily support to more than 650,000 vulnerable people, making staffing shortages a significant concern for care providers and local authorities.

Prime Minister Andy Burnham is reportedly considering exemptions for care workers, although no final decision has been announced.

The proposals have also faced opposition from Labour lawmakers, with more than 100 parliamentarians previously urging the government to reconsider the reforms.

Some lawmakers want existing migrants protected from retrospective changes and the maximum settlement period limited to seven years.

Care operators say uncertainty is already affecting business decisions, with some exploring sales or closures.

The government is expected to announce further details next month, while providers continue to warn that domestic recruitment remains difficult at current wage levels.