The Home Secretary also argued that the package struck a fair balance between migrants who came to work in Britain and the taxpayers who fund public services.
She told GB News: “I think this package represents the fairest resolution between those who came to work in this country and also British citizens and taxpayers who ultimately fund the services we all depend upon.”
Ms Mahmood had come under pressure from Cabinet colleagues, including Housing Secretary Angela Rayner and Net Zero Secretary Miatta Fahnbulleh.
Labour MPs continued to pile pressure on Ms Mahmood after she set out her plan in the House of Commons.
Diane Abbott, who served as Shadow Home Secretary under Jeremy Corbyn, said: “People can come in legally and work legally, and then have their residency rights turned upside down. How can that be fair?”
York Central MP Rachael Maskell added: “I will read the detail in the consultation, but I am concerned about retrospective changes because our word should be our bond to people coming here.”