Care home bosses have been ordered to hire foreign workers already living in the UK before recruiting from overseas.
The Home Office declared employers must show they are not overly reliant on bringing in cheap labour from abroad.
Only then can they offer jobs to migrant workers living overseas.
The Government revoked more than 470 sponsor licences in the care sector between July 2022 and December 2024, amid fears of abuse.
They have been linked to 39,000 foreign workers.
And officials fear short English language courses are being exploited by migrants with no “genuine intention to study or to leave the UK”.
Caseworkers will be given more powers to refuse applications to prevent the “troubling trend” from spiralling out of control.
Migration Minister Seema Malhotra said: “Those who have come to the UK to support our adult care sector should have the opportunity to do so, free from abuse and exploitation.
“We have already taken action to ensure employers are not able to flout the rules with little consequence or exploit international workers for costs they were always supposed to pay.
“We are now going further, requiring employers in England to prioritise recruiting international care workers who are already here and seeking new sponsorship, before recruiting from overseas.”
Home Office data shows the number of Health and Care Worker visas granted plunged 84% between April to September 2024 – down from 80,541 grants in the same period in 2023.
The Office for National Statistics said net migration to the UK hit 906,000 in the year to June 2023, amid an influx of foreign students, a spike in non-EU workers, particularly in the health and social care sectors and the introduction of the Ukraine and Hong Kong refugee visa schemes.
It fell to 728,000 as reforms to the immigration system began to bite.
Care Minister Stephen Kinnock said: “International care workers play a vital role in our social care workforce. We value their contribution and work supporting vulnerable people across the country every day.
“As we crack down on shameful rogue operators exploiting overseas workers here in the UK, we must do all we can to get the victims back into rewarding careers in adult social care.
“Prioritising care workers who are already in the UK will get people back to work, reduce our reliance on international recruitment, and make sure our social care sector has the care professionals it needs.”
Research by the Centre for Policy Studies revealed low-skilled migrants are costing taxpayers “more than they contribute at every stage of their time in the UK”.
Analysis of an Office for Budget Responsibility report found that the amount they cost the state – through benefits, healthcare and pensions – dwarfs the amount they pay in tax.
The Centre for Policy Studies warned that the Government must “rebalance our migration policy” towards high-skilled workers.
And the Tories insisted new restrictions should be placed on migrants.
Only foreign workers who have not claimed benefits or relied on social housing whilst living in the UK on work visas will be given the right to remain indefinitely.
