Contributors
The UK Government is currently undergoing a pivotal 12-week consultation aimed at reshaping the country’s immigration settlement framework. Central to these reforms is the proposal of an “earned settlement” model, which introduces a new approach to how individuals will be able to achieve permanent residency in the UK. Rather than relying solely on time spent in the country, the reforms propose that applicants must demonstrate genuine integration, sustained economic contribution, and good character to "earn" their settlement. This guide provides a comprehensive and detailed exploration of the proposals, the rationale behind them, potential implications for various categories of migrants, and guidance for affected organisations and individuals.
Background and rationale for reform
Historically, settlement in the UK—also known as Indefinite Leave to Remain (ILR)—has been available through several immigration routes, including Skilled Worker, Global Talent, Innovator Founder, and Family routes. The current system typically requires five years of continuous residence for most categories, with notable exceptions such as the Global Talent and Innovator routes, which offer accelerated paths.
Recent policy reviews and the Immigration White Paper (published in May 2025) have highlighted the Government's concerns that the current settlement routes are too "automatic" and are not sufficiently linked to contribution or integration, with some ministers arguing that settlement should be a "privilege, not a right". The Government seeks to ensure that settlement is reserved for those who can demonstrate meaningful economic participation, adherence to British social values, and a clear record of lawful conduct. The earned settlement consultation reflects this ambition, proposing stricter eligibility requirements and longer qualifying periods to encourage integration and prevent abuse of the system.
Key proposals in the earned settlement consultation
The consultation document outlines a structured framework for settlement, incorporating both universal and route-specific criteria. These include:
- Good character requirement: Applicants must have a clean criminal record and a history of lawful conduct.
- Language and integration: Proficiency in English to at least level B2 under the Common European Framework of Reference for Languages is mandatory, alongside passing the Life in the UK test (which is also due to undergo a refresh).
- Economic contribution: Applicants must demonstrate sustained employment or self-employment, with annual taxable earnings of at least £12,570 for a period of three to five years prior to the application. Higher earning thresholds (£50,270 or £125,410) may offer accelerated routes.
- No outstanding debts: Applicants must have no unpaid NHS charges, tax debts, or unresolved litigation with the UK Government.
Changes to qualifying periods for settlement
A significant aspect of the consultation is the proposed extension of qualifying residency periods for most settlement routes. The Government argues that longer pathways will promote integration and ensure that only those who have contributed to the UK are granted permanent status. The proposed changes are summarised below:
| Immigration Route | Current Qualifying Period | Proposed Qualifying Period | Difference |
| Skilled Worker (RQF Level 6 or above), Health and Care visa | Five years | 10 years | + five years |
| Skilled Worker (Below RQF Level 6) | Five years | 15 years | +10 years |
| Global Talent | Three to five years | Three years | Up to - two years |
| Innovator Founder | Three years | Three years | No change |
| Partner/Spouse (Family route) | Five years | 10 years | + five years |
The extension of the qualifying period is particularly significant for the Skilled Worker and Family routes, potentially tripling the time required to obtain settlement in some cases. Transitional arrangements for those already on qualifying settlement routes, as well as the removal of the 10-year long residence route, are under consideration.
Attributes influencing settlement pathways
While the qualifying period forms the backbone of the earned settlement approach, the Home Office has proposed individual "attributes" which may impact the duration:
Accelerated pathways (shortening factors)
| Attribute | Adjustment to baseline qualifying period (Minus) |
| Competency in English language at Level C1 under the Common European Framework of Reference for Languages | One year |
| Earning a taxable income of £125,410 for three years immediately prior to applying for settlement | Seven years |
| Earning a taxable income of £50,270 for three years immediately prior to applying for settlement | Five years |
| Has been employed in a specified public service occupation for five years | Five years |
| Worked in the community (e.g., volunteering) | Three to five years |
| Holds permission as the parent/partner/child of a British citizen and meets core family requirements | Five years (Not subject to consultation) |
| Holds permission granted under the British National Overseas route | Five years (Not subject to consultation) |
| Has three years continuous residence as a Global Talent worker or Innovator Founder | Seven years |
| Specific and vulnerable groups having a reduction | Subject to consultation |
*Only one of the listed attributes that causes the largest decrease would be applied.
Extended pathways (lengthening factors)
| Attribute | Adjustment to baseline qualifying period (Plus) |
| Has been in receipt of public funds for less than 12 months during route to settlement | Five years |
| Has been in receipt of public funds for more than 12 months during route to settlement | 10 years |
| Arrived in the UK illegally | Up to 20 years |
| Applicant entered the UK on a visit visa | Up to 20 years |
| Overstayed a permission for 6 months or more | Up to 20 years |
*Only one of the listed attributes that causes the largest increase would be applied.
Costs and economic impact
Longer qualifying periods are likely to have substantial cost implications for applicants and sponsoring organisations.
Let's take a theoretical case as an example. Suppose a large Architectural practice sponsors an Architect full-time as a Skilled Worker. They are being paid a gross basic annual salary of £48,000 per year and the sponsor is paying for all of their immigration costs.
Assuming that the sponsored worker does not have any attributes that will lengthen their qualifying period, they might need nine years of qualifying period in order to apply for indefinite leave to remain (settlement) if they do not have:
- A taxable income of £50,270 for three years immediately prior to applying for settlement, or
- Have not worked in the community, or
- Can only demonstrate a competency in English language at Level C1.
This means that compared to the current qualifying period of five years, they will require four additional years in order to be able to apply for indefinite leave to remain. In addition to the personal cost of additional qualifying time, because it is the sponsor's policy to cover all immigration costs, this would incur the following additional fees for a 4-year Skilled Worker visa extension:
- Certificate of Sponsorship fee: £525
- Immigration Skills Charge: £5,280 (taking into account the ISC increase in December 2025)
- Visa application fee: £1,751
- Immigration Health Surcharge: £4,140
This is a total of £11,696, which does not include immigration adviser's fees, visa for any dependants (if applicable), priority service fees and tax for taxable benefits such as the Immigration Health Surcharge and visa application fee (if applicable).
Notwithstanding the significant costs sponsors will face associated with a longer qualifying period, they could also be impacted by talent shortages in the regions as sponsored workers might be forced to relocate to London and other regions that offer higher compensation, in order to meet the income-based attributes to shorten their qualifying period. The proposal wording is ambiguous because it refers to "taxable income" in relation to the attributes required to shorten the qualifying period. Defining income as "taxable income" could cause issues and confusion with how the income threshold is actually deemed to be met, e.g., it isn't clear if salary sacrifice schemes will affect how individuals will meet the income threshold. This could prevent individuals who do earn the income threshold, but who have salary sacrifice schemes in place, from being able to shorten their qualifying period. This will undoubtedly be raised during the consultation and so we will wait to see the outcome of the consultation to see if any clarification is provided.
Transitional arrangements and citizenship
The Government is considering whether or not there should be transitional arrangements for individuals who are currently on a settlement pathway, e.g. those already in the UK on a visa route which leads to settlement. While existing settled status will not be revoked (except in cases of criminality, deception, or fraud), some changes may affect eligibility for British citizenship by amending the British Nationality Act 1981.
Frequently Asked Questions (FAQs)
When does the consultation close?
The consultation period ends at 23:59 on 12 February 2026. Individuals or organisations affected by or who have an interest in the proposed changes are strongly encouraged to submit feedback before this deadline.
When will the changes be implemented?
The Government plans to implement the new rules in phases, starting in April 2026.
Will there be transitional arrangements for current residents?
Transitional arrangements are being considered to protect individuals who have already begun their settlement journey under the existing rules. The Government invites individuals or organisations affected by or who have an interest in the proposed changes to input on these measures.
Will settled status or indefinite leave to remain be revoked?
Existing settled status and indefinite leave to remain will not be revoked except in cases of criminality, deception or fraud in obtaining the status.
What happens to the 10-year long residence route?
The long residence route is set to be removed.
Will income thresholds be updated if the tax system changes?
The Government does not currently intend to update income thresholds in line with future tax changes.
Will public service occupation reductions apply to all jobs?
Reductions in qualifying period are proposed only for public service roles at RQF Level 6 or above.
Will there be changes to British citizenship?
Yes, changes to the British Nationality Act 1981 are anticipated following the consultation. The Government are yet to publish any details on what these changes will look like, so this is one to keep a watch on.
Do dependants and children need to meet requirements independently?
Adult dependants and children who reach 18 during the qualifying period may be required to meet settlement criteria independently. This aspect remains under consultation.
How can stakeholders participate in the consultation?
The consultation document is available for review online, and stakeholders can submit feedback or attend relevant forums to help shape the final recommendations. The consultation can be accessed here.
Implications for employers and organisations
Organisations must prepare for the increased administrative and financial responsibilities imposed by the new settlement system. This includes reassessing sponsorship policies, supporting affected employees, and engaging actively in the consultation process. Strategic workforce planning, especially in sectors reliant on skilled migration, will be essential to adapting to the evolving regulatory landscape.
Conclusion
The UK Government’s earned settlement consultation marks a major shift in the country’s approach to granting permanent residency. Organisations and individuals are urged to stay informed, participate in the consultation, and review their strategies in light of the anticipated changes. Our team of immigration specialists are on hand to support with any queries you may have, so please do not hesitate to reach out to us.
This article is for general information only and reflects the position at the date of publication. It does not constitute legal advice.
