The biggest shake-up of immigration policy in a generation is expected to see multi-year visas handed to migrants who get jobs in key sectors of the economy but limit access to benefits for new arrivals.

Under plans advocated by senior ministers the government would seek to take political heat out of immigration by getting an independent body to advise on how many visas should be issued.

At a meeting of the cabinet’s Brexit committee on Thursday, Theresa May ordered ministers to draw up a two-stage plan: first, to deal with EU nationals already in the UK; second, to set up a new visa regime for those who arrive later.

Ministers were also told to draw up a “traffic light” system, issuing regular red, amber and