Illegal migrant families in the United Kingdom will now be offered up to £40,000 to leave the country voluntarily under a new pilot scheme announced by Home Secretary Shabana Mahmood. The policy, part of a wider overhaul of the UK’s migration system, aims to encourage failed asylum seekers to depart within seven days while reducing the cost of supporting them.

Under the scheme, up to 150 migrants will be eligible for £10,000 per person, including children, with a maximum payment of £40,000 per family. Mahmood highlighted the financial impact of failed asylum claims, noting that housing a family of three in asylum accommodation can cost up to £158,000 annually. She argued that the incentive program could therefore save taxpayers significant sums if it successfully encourages voluntary returns.
Mahmood stressed that migrants who refuse to leave voluntarily could face enforced deportation. “Where a voluntary removal is refused, we will escalate to an enforced removal for those who can be returned to their safe home country,” she said. The move forms part of a broader migration crackdown under Prime Minister Keir Starmer’s government, designed to balance a measure of generosity with stronger border enforcement. “At the same time as showing generosity, we must wrest control over migration back from the smugglers and restore order and control at our border,” Mahmood added.
The proposal has sparked debate within the Labour Party. Reports indicate that more than 100 Labour MPs have signed a letter urging the prime minister to reconsider parts of the crackdown. Mahmood acknowledged internal tensions but defended the reforms, saying that the goal is not to lean toward extreme positions. She criticized rival proposals from politicians such as Zack Polanski and Nigel Farage, describing the government’s plan as a middle path between unrestricted open borders and total closure.
Alongside the voluntary return payments, the government is introducing stricter requirements for settlement. Migrants seeking permanent residency will now need to demonstrate English proficiency at an A-level standard, and the standard path to settlement will increase from five years to ten years under an “earned settlement model.” Refugees granted protection will no longer automatically receive long-term status but will be placed on temporary 30-month protection visas subject to review.
Asylum seekers who commit crimes, work illegally, or are able to support themselves may lose access to taxpayer-funded housing and financial assistance. Officials say these measures are designed to reduce the £4 billion annual asylum support bill while restoring what Mahmood describes as “order and control” at Britain’s borders. Certain skilled workers, including doctors and nurses, are expected to retain a faster five-year pathway to settlement. Some of the most controversial elements of the policy could be included in legislation presented during the King’s Speech in May.


