Skip to content
Friday 7 August 2026London --:--Frankfurt --:--Zurich --:--
NewslettersSearchEN · DE
MorningWire

European business, markets and politics

FTSE 100
10,905.98
+0.35%
DAX
26,295.06
+0.59%
CAC 40
8,715.37
+0.18%
STOXX 50
6,528.11
+0.39%
  • Europe
  • Markets
  • Business
  • Economy
  • Technology
  • Politics
  • Opinion
More
GermanyFranceBankingAIEnergyFintechPropertyCapital Markets
  • Germany
  • France
  • Europe
  • Markets
  • Business
  • Economy
  • Technology
  • Politics
  • Opinion
  • DE
Saturday 27 June 2026 2:17 pm  |  Updated:  Saturday 27 June 2026 2:18 pm

Mahmood unveils refugee sponsorship route as asylum bill faces Labour test

By: Saskia Koopman

Tech Reporter

Add as a preferred source on Google
Mahmood prepares to bring forward an immigration bill next week

Home secretary Shabana Mahmood has unveiled plans for businesses and universities to sponsor refugees to come to Britain, as she seeks to shore up support for a wider asylum overhaul expected to face resistance from parts of Labour.

The Home Office said it would introduce new “capped safe and legal” routes from later this year, modelled partly on Canada’s private sponsorship system, which has resettled almost 400,000 refugees since 1979.

Under the proposals, trusted organisations including universities, churches, community groups and eventually employers would be able to sponsor refugees approved to come to the UK, helping them find housing, work and support after arrival.

The move comes as Mahmood prepares to bring forward an immigration bill next week containing tougher rules on human rights and modern slavery claims, including measures aimed at blocking what ministers describe as “vexatious” applications.

Mahmood said the reforms would protect “genuine refugees” while closing loopholes that had been “too often abused”.

“Britain has always offered sanctuary to those fleeing war and persecution,” she said. “But this system only survives if the public trusts that it is fair, controlled, and not open to abuse.”

Canada model under Labour pressure

The announcement seems to be designed to balance the harder-edged parts of Mahmood’s asylum package with a route aimed at Labour MPs and charities who have argued that the lack of legal alternatives helps fuel small boat crossings.

Applications for a university sponsorship route are due to open later this year, with first arrivals expected in 2027.

A separate refugee work route, allowing employers to sponsor refugees, is expected to open next year.

The Home Office has not said how many people will be allowed to arrive under the new schemes, but said numbers would be capped and start from a low base before eventually operating at a higher capacity than the existing UK Resettlement Scheme.

The department said it would work with the UN refugee agency to establish eligibility, with all applicants subject to background checks before arrival.

Read more

Mahmood called for banker bonus tax to fix youth unemployment 

Shabana Mahmood wearing a stylish black jacket, embodying professional elegance in a business setting

The reforms come as ministers remain under pressure to reduce the number of asylum seekers housed in hotels, which has become one of the most politically sensitive parts of the migration system.

Mahmood’s bill is also expected to tighten the definition of family life in immigration claims, restrict modern slavery protections for foreign nationals who have received custodial sentences, and introduce a stronger test making clear that deporting foreign national offenders is in the public interest.

The Home Office insisted Britain’s membership of the European Convention on Human Rights remained “firmly in our national interest”, but said the application of human rights law needed to be narrowed.

Conservative shadow home secretary Chris Philp said the plan would “make no difference” to small boat crossings, while Reform UK said it would reverse the sponsorship scheme if elected.

The Liberal Democrats described the new route as a “step in the right direction” but said more work was needed to reduce dangerous crossings.

The Community Sponsorship Alliance urged ministers not to make the scheme too narrow.

Leonie Ansems De Vries, its deputy chair, said the government should avoid eligibility rules that “stifle the very public goodwill that makes sponsorship work”.

The announcement lands amid tensions inside the Home Office after Mahmood clashed with immigration minister Mike Tapp over an unauthorised article arguing foreign care workers should be exempt from proposed visa changes.

Mahmood asked Sir Keir Starmer to sack Tapp, but Downing Street declined, saying the minister had instead been reminded of his obligations under the ministerial code.

The row has added to the political sensitivity around the bill, which is expected to become an early test of Labour’s direction on immigration ahead of Andy Burnham’s expected rise to Downing Street.

Read more

Shabana Mahmood set to be named Chancellor by Burnham

Shabana Mahmood, potential Chancellor, in a professional setting, poised and confident, reflecting leadership qualities

Share this article

  • Facebook
  • X
  • LinkedIn
  • WhatsApp
  • Email

Similarly tagged content:

Sections

  • News

Categories

  • Business

People & Organisations

  • asylum seeker
  • home office
  • Home Secretary
  • illegal immigration
  • immigration
  • Keir Starmer
  • Labour
  • Shabana Mahmood
  • universities

Trending Articles

  • Revolut founder’s wealth set to balloon amid talks of share award at $500bn valuation

  • Rupert Lowe axes pensions triple lock and pledges tax cuts in economic plan

  • As it happened: Stocks rise as oil fluctuates after Red Sea attack; US-Iran deal ‘being circulated’

  • Liverpool owners tipped to sell – but not to Amazon boss Bezos – by former CEO

  • WPP slashes jobs as revenue continues to fall

More from Morning Wire

  • Mahmood called for banker bonus tax to fix youth unemployment 

    Banking
    Shabana Mahmood wearing a stylish black jacket, embodying professional elegance in a business setting
  • Shabana Mahmood set to be named Chancellor by Burnham

    Politics
    Shabana Mahmood, potential Chancellor, in a professional setting, poised and confident, reflecting leadership qualities
  • City sizes up mystery Mahmood

    Politics
    Shabana Mahmood, potential Chancellor, in a professional setting, poised and confident, reflecting leadership qualities
  • Miliband opponents pour cold water on Chancellor hopes

    Politics
    Ed Miliband outside Downing Street
  • As it happened: Stocks drop on Trump-Iran warning; Mahmood tipped to be chancellor

    Markets
    Donald Trump speaking at a press conference podium with an American flag backdrop, emphasizing political discourse
  • Can the City make friends with Healey?

    Politics
    Chancellor John Healey smiling, wearing a navy suit, white shirt, and red tie.
  • John Healey becomes Chancellor as Andy Burnham names top Cabinet appointments

    Politics
    Chancellor John Healey speaking at a professional event, likely a press conference or address.
  • Investor visa proposed by Labour-aligned think tank

    Politics
    Skyline of Canada with iconic financial district buildings, highlighting UK investments and economic growth.
MorningWire

Independent European business, markets and political news for decision-makers.

Morning Briefing

Europe

  • Germany
  • France
  • Europe
  • UK & Ireland

Business

  • Markets
  • Banking
  • Technology
  • Energy
  • Property
  • Fintech

Editorial

  • Opinion
  • Editorial Policy
  • Corrections
  • Contact

Company

  • About Morning Wire
  • Privacy Policy
  • Terms of Use
  • Cookie Policy
© 2026 Morning Wire Ltd · Published by Morning Wire Media, Bahnhofstrasse 65, 8001 Zürich, Switzerland
Privacy · Terms · Cookies · Facebook