The move is part of a wider effort to “tighten up” what the prime minister called a “broken” immigration system.
The changes will also end automatic settlement for migrants on some visas in the UK after five years. Most migrants will need to stay at least 10 years before they can apply for settled status and begin the path to gaining full citizenship.
At the same time, a “fast-track” settlement will be established for nurses, engineers, AI experts and others who “genuinely contribute to Britain’s growth and society”, Sir Keir said.
With settled status, migrants can stay in the UK indefinitely, earn a living, study or get support. It can also be used to start the process to becoming a British citizen.
A 10-year route to settlement would make the UK “more restrictive than most other high-income countries,” Madeleine Sumption, director of the Migration Observatory at the University of Oxford, told BBC News.
The main impact of the change will be “more visa-fee revenue to the Home Office”, because people on temporary visas pay ongoing fees to be here, Ms Sumption said.
A longer settlement process will also make it “harder for migrants to settle in, because more will lack the rights that come with permanent status”, she added.