Aspiring British citizens will be put on probation for at least one year to show they can speak English, pay their taxes, abide by the law and have integrated into local life, the government said yesterday.
The move is the latest by Britain to try to control the influx of migrants and ease public fears that schools, hospitals and transport networks are being swamped by foreign nationals, especially since EU enlargement.
Migrants, particularly those with elderly relatives and children, will also face higher application fees to help Britain adapt its infrastructure to cope with rising immigration.
Countries in the European Economic Area, a grouping of 30 states most of whom are EU members, are exempt from the new rules.
The plans also seek to encourage migrants to integrate locally, rather than living in segregated areas and speaking their own languages - a trend that can lead to intolerance.
As in Europe and the US, immigration is a major election issue in Britain and Prime Minister Gordon Brown faces a challenge to strike the right balance between encouraging economic migration and maintaining good community relations. Germany, France, Spain and Italy have or are introducing steps to better foster the integration of foreign nationals.
"It is fair to expect people to pay their way, to play by the rules, to speak our language and contribute to the community," said Home Secretary (Interior Minister) Jacqui Smith, unveiling the plans that must be passed by Parliament.
Under the proposals, highly skilled or skilled workers will undergo the one-year probation period on top of a five-year temporary residence period they must first complete.
There will be stricter English-language tests and migrants will have access to full benefits such as housing and child benefit only once they have passed probation.
Those who cannot show they have integrated into their community, through voluntary work or fund-raising for example, will have to wait three years before applying for citizenship.
The opposition Conservative Party labelled the plans a "gimmick" and called for a numerical cap on immigration, a move the government opposes.
Ms Smith said the changes would target those who "languish in limbo" - living in Britain but not adapting to British life.
They follow moves to limit the number of immigrants, which include an Australian-style points based system that begins in March and will measure migrants' potential.