The British Nationality Act 1981 reclassified Saint Helena and the other Crown colonies as British Dependent Territories. The islanders lost their right of abode in Britain. For the next 20 years, many could find only low-paid work with the island government, and the only available employment outside Saint Helena was on the Falkland Islands and Ascension Island. The Development and Economic Planning Department (which still operates) was formed in 1988 to contribute to raising the living standards of the people of Saint Helena.
In 1989, Prince Andrew launched the replacement RMS St Helena to serve the island; the vessel was specially built for the Cardiff–Cape Town route and featured a mixed cargo/passenger layout.This service ended in January 2018, as the fastest and easiest access to St Helena is via the airport, with it's first commercial flight being made in 2017.
The Saint Helena Constitution took effect in 1989 and provided that the island would be governed by a Governor, Commander-in-Chief, and an elected executive and legislative council. In 2002, the British Overseas Territories Act 2002 granted full British citizenship to the islanders, and renamed the dependent territories (including Saint Helena) the British Overseas Territories. In 2009, Saint Helena and its two territories received equal status under a new constitution, and the British Overseas Territory was renamed Saint Helena, Ascension and Tristan da Cunha.