Britain will reportedly offer the EU an “Australian-style” youth mobility scheme as part of Sir Keir Starmer’s post-Brexit reset of relations with the bloc.
The plan would see tens of thousands of workers and students from the EU allowed to live and work in the UK for up to three years, with 18 to 30-year-old Britons granted similar access to the European Union.
A youth mobility scheme has emerged as one of the key sticking points in negotiations about a closer relationship between the UK and Brussels, with Downing Street so far rejecting the plan. Ministers fear a deal on youth mobility will be painted as a return to freedom of movement and a betrayal of Brexit.
But, under the proposals to be tabled by British negotiators, there will be a cap on the number who can take part in the scheme to allay concerns over its impact on immigration figures, The Times reported.
Those coming to the UK would also have to pay an NHS surcharge, but would not be entitled to claim benefits.
The Liberal Democrats said progress on a youth mobility deal were a “victory for common sense”. The party’s Europe spokesman James MacCleary added: “This has to be the first step in fixing our broken relationship with the EU and cutting down the Brexit red tape which is holding our economy back.”
Dr Mike Galsworthy, chairman of the European Movement UK, told The Independent: “This is welcome news. We need to start pulling this country out of the no-growth quagmire of Brexit and start giving people hope for a better, brighter future.
“Liberating our youth and small businesses alike to engage is an important start. Hopefully the government will now see that being bold, hopeful and engaged with Europe brings a sigh of relief from the public and a happier outlook.”
And chief executive of the Best for Britain campaign group Naomi Smith said it was a “very welcome and common sense move” which would “give opportunities back to young Brits while helping businesses across the UK struggling with labour shortages”.
But the Conservatives compared Sir Keir’s reported acceptance of a youth mobility deal with the PM’s plans to hand over the Chagos Islands to Mauritius and said “when Labour negotiate, the UK loses”.
Shadow foreign secretary Dame Priti Patel said: “Within months of coming to office Labour are already betraying Brexit by steering Britain back to being a rule-taker and opening the door to free movement returning.”
The PM has said he wants to strike an “ambitious” post-Brexit deal with Brussels in time for a key UK/EU leader summit in May.
Alongside access to UK fishing waters, a youth mobility scheme has been a top demand from European countries during Sir Keir’s reset efforts so far.
But, despite the British concession, EU leaders are still expected to pile pressure on UK negotiators over healthcare fees, overseas university tuition fees and the mooted cap on numbers.
Britain has an existing youth mobility agreement with Australia, under which the number of visas issued last year was capped at 45,000, while those who came to the UK on the scheme paid an average of £1,552 in health surcharges and a £298 fee.
A scheme with the EU could reportedly be capped at 70,000, though no decision has been taken.
The UK has youth mobility deals with 12 countries, including New Zealand, South Korea, Iceland, Uruguay, Hong Kong and Taiwan.
As well as coming under pressure from Brussels, Sir Keir has been facing growing pressure in the Labour ranks to agree a youth mobility deal. The Labour Movement for Europe, a pro-EU pressure group of MPs, has been campaigning for the PM to strike a deal with the EU.
And on Tuesday, London mayor Sadiq Khan backed proposals for a youth mobility scheme with the EU, saying he is “strongly in favour” of such a deal.
Britain’s top priority in the reset talks is a deal to reduce red tape blighting businesses by scrapping checks on food and plant product exports.
A government spokesperson said: "We do not have plans for a youth mobility agreement.
“We are committed to resetting the relationship with the EU to improve the British people’s security, safety and prosperity.
“We will of course listen to sensible proposals. But we have been clear there will be no return to freedom of movement, the customs union or the single market.”
