New sanctions targeting the finances of people smuggling networks will make it harder for gangs to profit from the deadly trade, the Home Office has said.

The government has said the proposed measures aimed at curbing illegal migration into the UK are expected to come into force this year.

The sanctions, designed to disrupt the flow of money, are thought to be the world’s first to specifically target people smugglers.

Sir Keir Starmer said the move would hamper “illicit finance rings allowing smugglers to traffic vulnerable people across Europe”.

“We must dismantle the crime gangs facilitating breaches of our borders,” the prime minister said.

Under the proposed measures, which are yet to be finalised, UK-based individuals and financial institutions would be banned by law from dealing with sanctioned groups.

The government will bring forward new legislation for the scheme, drawn up by government sanction experts alongside law enforcement and Home Office staff.

• How many people cross the Channel in small boats?

Foreign Secretary David Lammy will set out further details in a speech on Thursday.

Ahead of his address, he said the measures would “help to prevent, combat, deter and disrupt irregular migration and the smuggling of migrants into the UK”.

In 2024, the number of people detected crossing the English Channel in small boats was up by a quarter, from 29,437 in 2023 to 36,816.

However, this was lower than the record 45,755 seen in 2022.

Under enhanced powers to tackle people smuggling announced in November, the UK’s Border Security Command was given permission to freeze smuggling networks’ bank accounts.

Meanwhile, ministers announced new laws allowing travel bans, social media blackouts and phone restrictions for suspected people smugglers earlier this month.

Shadow foreign secretary Priti Patel said Labour had “no credibility on dealing with the evil trade in 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.”