The UK is likely to offer European Union members a youth mobility scheme, as the government looks to reset relations with the trading bloc.

Under an “Australian-style” plan, young EU workers and students would be able to live and work in the UK for two years, with the possibility of a one-year extension, according to a report in The Times.

The reciprocal scheme would allow young Britons, aged 18-30, similar access to countries in the EU.

The number of young people allowed into the UK would be capped annually and participants would have to pay an NHS surcharge. They would not be entitled to state benefits.

Ministers hope the plans will be fully agreed in time for a “Brexit reset” summit in London on 19 May.

Previously the UK government has rejected the idea of an EU youth mobility scheme.

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As yet, the annual figure at which the British government would cap an EU scheme is unknown, although 70,000 has been rumoured. This would be far lower as a proportion of the population than Australia’s scheme where the population is 27 million as opposed to the UK’s 68 million.

Based on last year’s figures, the number of visas issued under the Australian scheme was capped at 45,000 and all beneficiaries were expected to pay upfront an average of £1,552 in immigration health surcharges for two years, plus a £298 fee.

If visas were issued in the same proportion as the scheme for Australia, about 750,000 visas a year would be issued to citizens of the EU.

British conditions for establishing a scheme are likely to be contested by EU member states. The European Commission does not believe mobility should be subject to a quota and it is opposed to healthcare surcharges.

A UK government spokesperson said: “We are committed to resetting the relationship with the EU to improve the British people’s security, safety and prosperity. We will of course listen to EU proposals. But we have been clear there will be no return to freedom of movement, the customs union or the single market.”

However, among other areas of concern, the UK is looking to ease trade friction by eliminating checks on exports of food and plant products, mutual acceptance of professional qualifications and a new agreement on fishing quotas. It is thought that concessions will have to be made over youth mobility.

Naomi Smith, chief executive of Best for Britain, which has campaigned for youth mobility since May 2023, said: “If these reports are accurate, this is a very welcome and common sense move from the Government to give opportunities back to young Brits while helping businesses across the UK struggling with labour shortages.

“With our polling consistently showing that around 60% of voters back the idea, it really is a win-win for both the UK and EU.”

Kamilla Kelemen, partner at city law firm DMH Stallard, and specialist in immigration matters, said businesses would be pleased by the development: “It would provide a welcome increase in the flexibility of the labour market and temporarily address staff shortages in sectors such as hospitality and retail.

“Notably, a youth mobility visa is not linked to an employer by way of a sponsorship, which encourages the movement of labour between the employers.

“It is yet to be seen in what shape or form the scheme will take and when it could be introduced. In particular, the talks could be affected by the push for the scheme to be exempted from the payment of immigration health surcharge.”

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