The British passport has been “debased by benefit tourism for too long”, ministers have been warned.
Shadow Home Secretary Chris Philp told the Daily Express that Labour wants to “subsidise recent arrivals who have never paid into the system.”
The Tories have declared unemployed migrants should have their work visas revoked.
And they insisted those claiming benefits or living in social housing should be barred from settling in the UK indefinitely.
The Conservatives believe their proposed reforms would prevent up to three quarters of migrants from being granted indefinite leave to remain.
Shadow Home Secretary Chris Philp told the Daily Express: “The fact that the Labour Party think it is right that those who only ever stand to take out more from the system than they put in, should be granted the right to stay in this country is absurd
“ILR must be earned. You must contribute more financially than you take out of the system, even more so if you wish to bring a dependent, and be a part of the community you wish to join.
“A British passport is a privilege, one that has been debased by benefit tourism for too long. Our plan gets it right, making sure that those who pay their way, get to stay.
“Labour wants hard-working taxpayers to subsidise recent arrivals who have never paid into the system. That is fundamentally unfair and the Conservative’s new policy will end it. We only want a limited number of migrants who will actually make a real contribution.”
Research has suggested 72 per cent of migrants on skilled worker visas are employed in sectors that pay less than the UK average salary.
Mr Philp said the plans could result in hundreds of thousands of migrants losing the right to settle permanently in the UK and seek British citizenship.
He said that, on current forecasts, around two million people are likely to become eligible for indefinite leave to remain in the next five years.
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. 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.
Those with criminal records would also be barred, the Conservatives said. Tory leader Kemi Badenoch also called for migrants to face a 10-year wait before they can apply for indefinite leave to remain.
This is double the current five years and would signal “our country is not a dormitory”, Kemi Badenoch declared.
Mrs Badenoch told the BBC: “I think that the single biggest failure that politicians across the board have had over the last few decades is making promises and announcements without understanding how we will deliver them.
“We did that on immigration. I said we did it on net zero. I don’t want us to do that anymore. Labour is doing this now, and that’s why they’re running into trouble, and we need to change that.”
Challenged on whether immigration was the biggest issue of broken promises for the Conservatives, Mrs Badenoch said: “Well, there are some people who talk about taxes, others talk about immigration.
“My view is that we need to start showing that we have a credible plan to fix the problems of this country, and this is one of them.
“I have acknowledged that we’ve made mistakes on immigration. There is no hiding from that. I don’t hide from problems.
“We are telling the truth. I’m not somebody who’s afraid to tell the truth on immigration.
“I will say what needs to be said, and the party is under new leadership, and this is how we are going to be doing things from now on.”