In an attempt to prevent migrants from crossing the English Channel, new punishments will target the financial resources of people-smuggling networks.The goal of the proposed regulations is to impede the money flow and make it more difficult for ringleaders to generate money from the lethal trade. It will be the first independent penalties system in history aimed at combating organized immigration criminality and irregular migration."We must dismantle the crime gangs that facilitate breaches of our borders," stated Prime Minister Sir Keir Starmer. He claimed that "securing UK borders" will be aided by "crippling illicit finance rings that allow smugglers to traffic vulnerable people across Europe."The Government will bring forward legislation for the new scheme, which is expected to come into force within the year.

The plans have not yet been finalised but the regime is likely to operate on similar lines to other sanctions, meaning asset freezes and travel bans for individuals or firms where there are “reasonable grounds to suspect” involvement in people smuggling.The sanctions regime would prevent them using UK financial institutions to invest or move money around.

With these new sanctions, we will target those profiting off putting lives at risk and disrupt the gangs' finances, making it harder for them to operate

Yvette Cooper

If the new scheme is in line with the UK’s other regimes, such as those aimed at tackling terrorism, cyber attacks or Russians linked to the war in Ukraine, breaches of sanctions could be a criminal offence, punishable by up to seven years in prison.Foreign Secretary David Lammy will set out further details of the scheme in a major speech on Thursday.

He said: “This will help to prevent, combat, deter and disrupt irregular migration and the smuggling of migrants into the UK.”

As well as the UK’s sanctions regime, the Foreign Office expects to collaborate closely with international allies to combat people smugglers.

The Labour government has put international co-operation at the heart of its plans to address the migrant crisis after scrapping the Tory plan to send asylum seekers on a one-way trip to Rwanda.

Sir Keir will discuss the issue with France’s Emmanuel Macron on Thursday after the number of migrants arriving in the UK after crossing the Channel in small boats was 25% higher in 2024 than 2023.Some 36,816 people made the journey in 2024, up from 29,437 the year before.

The total is down 20% on the record 45,774 arrivals in 2022, however.

Home Secretary Yvette Cooper said: “Since coming into power, we have taken swift and robust action to smash the gangs, working with international partners to track down and disrupt dangerous criminal networks.

“With these new sanctions, we will target those profiting off putting lives at risk and disrupt the gangs’ finances, making it harder for them to operate.”

Shadow foreign secretary Dame Priti Patel accused Labour of having “no credibility” in dealing with people-smuggling.

“In Parliament they voted against tougher punishments and life sentences for people smugglers, abolished the Rwanda deterrent and campaigned in favour of the rights of dangerous criminals and foreign national offenders, over the safety of the British people,” she said.

“The last Conservative government legislated to tackle illegal migration and worked with international partners to bring criminals to face justice, disrupt their activities and secure arrests, prosecutions and convictions.”