The latest on the introduction of the “Earned Settlement” model in the UK to replace Indefinite Leave to Remain

On 20 November 2025, the Home Secretary outlined the proposed change to double the permanent settlement qualifying period (also known as Indefinite Leave to Remain) for most migrants from 5 to 10 years. This has been driven by an intention to control the UK settlement system through various adjustments (both upwards and downwards) to the 10-year path depending on personal circumstances, designed to "reward those who contribute and play by the rules". It is reported that it would make the UK settlement system the most selective in Europe so that "to settle in this country forever is not a right, but a privilege. And it must be earned". It will no longer be an automatic right after a fixed period.

We have been eagerly awaiting confirmation of whether the new proposed settlement criteria will apply retrospectively or only to affected migrants from a set implementation date. Sadly, the Home Secretary has confirmed her intention that the proposed changes are expected to have retrospective effect, applying to everyone in the country who has not already received indefinite leave to remain. This will affect nearly two million migrants. We recognise that these developments may cause considerable anxiety and uncertainty for both businesses and workers, as the goalposts for achieving settlement have shifted significantly.

However, transitional arrangements for those already in the UK are due to be set out following the consultation. It has been noted that the proposed changes will not apply to people who have already obtained settlement.

What is the 10-year baseline proposal?

Under the proposed changes, the government will introduce an 'earned settlement' model based on character, integration, contribution and residence to reinforce fairness and public confidence in the immigration system. The starting point for settlement will generally be 10 years residence in the UK, with new minimum mandatory criteria that must be met to include:

• Clean criminal record – the details on the precise thresholds to still be considered and announced. 
• Speaking English to A-Level standard (B2 Level of the Common European Framework).
• Passing the Life in the UK test (unchanged from current rules)
• Sustained National Insurance contributions (i.e. earnings above £12,570 annually for a minimum of 3 – 5 years - the length of time for having earned income being subject to further consultation)
• No current litigation, NHS debt, tax debt or other government debt in this country

It is important to flag that it is only the length of time that should be applicable for having an earned income (at bullet point 4 above) that is subject to the public consultation. The remaining mandatory criteria are essentially agreed, and we do not anticipate them changing, other than further details being published.

What adjustments will apply to the 10-year baseline proposal?

However, the 10-year baseline may be adjusted depending on personal circumstances. There have been a series of other tests published, which will be subject to consultation and either add, or subtract, from the new 10-year qualifying period. The government proposes that the criteria to adjust downwards from the 10-year settlement path (i.e. migrants can earn a faster route through their contribution) would include:

• 9-year path for those who speak English to a degree-level standard (C1 Level) Advanced.
• 5-year path for those paying the higher rate of tax (earning £50,270 in the three years prior to the application) or employed in specified public services at a certain level of seniority (likely RQF Level 6 or above including doctors, teachers, nurses etc.).
• 5-7 years for those who volunteer in the community.
• 3-year path for those paying top rate tax (earning £125,140 in the three years prior to the application) or entrepreneurs under the Global Talent or Innovator Founder routes for 3 years.

The government proposes that the criteria to adjust upwards from the 10-year settlement path (i.e. migrants face a longer route for negative factors) would be:

• 15 years for those who have claimed benefits for less than 12 months during their route to settlement
• 15 years for low-paid workers (skilled worker visas and health and social care visas in roles below RQF Level 6 – non-degree level)
• 20 years for those who have claimed benefits for more than 12 months during their route to settlement
• 30 years for those who arrived illegally (i.e. small boat), entered the UK on a visit visa and switched improperly or overstayed permission for 6 months or more.

Where an applicant falls into either the upwards or downwards adjustments and has more than one consideration that applies to them, the one that causes the largest adjustment will apply. For example, an applicant who meets the mandatory criteria along with speaking English to a degree-level and paying a higher rate of tax for at least the last 3 years, will fall into the 5-year path.

Where an applicant falls into a combination of both the upwards and downwards adjustments, the adjustments are combined, with adjustments upwards taking precedence. For example, an applicant who meets the mandatory criteria along with speaking English to degree-level and having been in receipt of benefits for less than 12 months, would result in an upward adjustment to 15 years and a downward adjustment of 1 year. This makes the applicant's total qualifying period 14 years.

Separately, the following groups and timelines will not be subject to consultation, because the government deems these categories already have a uniquely strong attachment to the UK:

• 5-year path – for partners of British citizens (as it is today);
• 5-year path – for British Nationals (Overseas) from Hong Kong; and
• 5-year path - EUSS settlement scheme (under the existing EU Withdrawal Agreement).

Finally, the government wishes to address the concern of increasing access to public funds and seeks views on the proposal that, even if individuals obtain a settlement under the new 'earned settlement' model, they should not be eligible to receive specified benefits in line with existing visa conditions. Instead, benefit eligibility would be delayed and triggered at the time these settled individuals become British citizens.

What does this change mean for skilled workers?

Under the new settlement proposals:

• Baseline will be 10 years of residence.
• Roles below RWF Level 6 may face a 15-year pathway.
• Earnings thresholds become essential for settlement.
• Apply to every skilled worker already in the country who has not already received indefinite leave to remain.

The consultation

The government has launched a public consultation that ends on 12 February 2026. Key consultation topics of particular interest will be around transitional arrangements for those already within the UK on a pathway to settlement and the treatment of low-paid workers.

We would urge all businesses and sponsors to engage with this consultation and respond online with your views before the deadline. Individuals can also share their views so we would recommend sharing this link amongst your workforce to increase engagement. The survey states that it should take 20 to 30 minutes to complete but we would envisage a longer time is required. If you would like to have advance sight of the consultation questions, they can be found at Annex B via the link below. The government plans to produce a paper summarising the responses to this consultation and roll out the new 'earned settlement' model from spring 2026. It's likely there will be a significant volume of responses to this public consultation and for the government to undertake a meaningful review of the replies, the timeline of change to be effective from Spring 2026 does not seem achievable. Link to consultation: https://www.gov.uk/government/consultations/earned-settlement

Conclusion

The proposed changes will dramatically impact new and existing skilled workers and health and care staff. For businesses who have staff eligible to apply for settlement before Spring 2026 (based on the current rules) we would recommend that you encourage them to submit their settlement applications before the rules change. Otherwise, they could be subject to significant delays and costs.

Sponsors should consider reviewing their workforce, identifying which sponsored migrants are likely to be affected with longer settlement times and the impact this will have on their projected budgets and recruitment strategies. Sponsors who employ migrants on roles below RQF Level 6 – are not only subject to the uncertainty of the incoming changes to the Immigration Salary List/Temporary Shortage List reviews but also now, the likelihood that sponsorship would be required to retain them for 15 years, compared to the 5 years that was originally expected at the time of their hire. A significant additional cost and administrative burden on all sides, which sadly, may not be viable to sustain.  

If you require any business immigration legal advice, please contact our team.