Some 1.6 million people are expected to receive indefinite leave to remain over the next five years.

But the Home Secretary could change the rules to ringfence benefits for British citizens.

The move comes amid growing concern at the record 1.3 million migrants claiming benefits, up 6.7 per cent on the previous year and nearly 50 per cent up since 2022.

The vast majority of these are EU nationals, prompting warnings that Labour has failed to tackle a “huge problem” which is costing taxpayers billions.

But Labour will not change their rights, because ministers do not not want to renege on previous promises.

Robert Bates, Research Director at the Centre for Migration Control, told the Daily Express: “Any proposals on settled status that fail to address the EU Settlement Scheme are not worth the paper they are written on.

“A huge bulk of those inflicting an economic burden on this country do so under rights given by the Brexit Withdrawal Agreement.

“It is laughable that the government is claiming to toughen up ILR rules but, at the same time, running away from tackling this huge problem.

“It beggars belief that they are claiming benefits will be restricted solely to British citizens, when over 4m EU nationals already hold the unencumbered right to access the welfare state, with another 2m likely to qualify in the coming years.”

European nationals, under the EU Settlement Scheme deal with Brussels, have their rights protected as soon as they apply to stay in the UK.

Migrants faced a deadline of December 31 2020 to apply for pre-settled status.

This lasts five years and can be upgraded to Settled Status.

Both guarantee the right to live and work in the UK and provide access to the benefits system.

Nearly 500 migrants a day are signing up for Universal Credit, pushing the total to 1.27 million up from 883,000 in spring 2022.

Ms Mahmood on Thursday confirmed migrants living on benefits must wait 20 to 30 years to receive indefinite leave to remain. Similarly, this will only apply to non-EU migrants.

And foreign nationals who arrived in the so-called ‘Boris Wave’ face a 10 to 15-year wait for settlement rights amid fears over an influx of low-skilled workers, particularly on the abused health and social care visa in the early part of this decade.

The new rules will apply to around 2.6 million people who arrived after 2021 – but won’t impact those already with settled status.

Foreign nationals applying for indefinite leave to remain must have no criminal record, speak English to A-level standards and have no debt, under Labour’s new proposals.

Under Labour’s new proposals, migrants making national insurance contributions will receive settlement after 10 years.

But higher and additional rate taxpayers will be able to secure indefinite leave to remain before that.

Someone earning £125,000 a year could achieve ILR in three years, Home Office documents show.

Under the current system, settlement is typically granted with few conditions after five years in the UK.

The Home Secretary said the proposed changes will not apply to those already granted settled status.

A staggering one in 30 people “in this country” have arrived since 2021, Ms Mahmood revealed.

Nigel Farage promised to abolish indefinite leave to remain and ban foreign nationals from claiming any form of welfare.

And those with settlement rights would have them rescinded, under Mr Farage’s plan if he wins the next election.

The Reform UK leader has vowed to confront Brussels over the proposals.

And the Tories have said only migrants that make a positive financial contribution to the UK should be able to receive ILR.