The main headline grabbing proposal in the May 2025 white paper, Restoring control over the immigration system, was the Home Office's intention to increase the standard qualifying period for settlement (or 'indefinite leave to remain', as the terms are used interchangeably) for qualifying immigration routes.
On 20 November 2025 the Home Secretary Shabana Mahmood announced the start of a consultation called Earned settlement on this proposal which will run until 12 February 2026. Changes are planned to begin in April 2026 and are expected to affect around 1.6 million people who arrived in the UK since 2021 and are forecast to settle between 2026 and 2030. For those employers who sponsor migrant workers or pay for visa fees on behalf of their employees, these proposals will lead to a need to continue sponsoring or employing for longer, with the associated higher visa costs which cannot always be passed on to the employee.
Will the rules apply to existing workers?
It was unclear in the white paper, but one of the most controversial aspects of the proposal is that the new rules will apply retrospectively to visa holders already in the UK on five-year routes to settlement. So, unless transitional measures are introduced, anyone who started a settlement journey from 2021 may be impacted, even if they are only a few weeks short of qualifying for settlement when the new rules go live. This represents an unprecedented departure from previous Home Office practice. Whilst the government has indicated it wants the settlement rules "to be amended as swiftly as possible and to apply widely", the exact scope does remains subject to consultation.
In keeping with this the consultation intends to seek respondents' views on how far the implementation of the earned settlement model should be accompanied by transitional measures.
'Earned settlement' model
Currently holders of visas on qualifying routes are eligible to apply for settlement after a fixed period, normally five years. The Government plans to introduce a 'contribution-based settlement model' with a starting baseline requirement of 10 years residence.
The changes to the residence rules will remove the current 10 year long residence settlement route, as that is deemed to be 'obsolete'. This will impact many applicants, especially those who have studied in the UK. So, time spent on visas that are not eligible for settlement – like Student or Graduate visas – will not count towards the new settlement qualifying periods.
The proposal is that eligible workers can then reduce the qualifying period down from 10 years (or increase it in some cases, for example due to previous overstay) through one of several different attributes under proposed earned settlement adjustments.
Mandatory requirements for all applicants for settlement
The starting point is that all mandatory requirements must be met. These will apply in all cases – including for dependant partners. Any trade-off provisions that can 'earn' a reduction to the qualifying period do not apply until the following mandatory requirements are met:
| Criterion |
Requirement |
Comments |
| Suitability |
The applicant must meet suitability requirements for an application, for example, not having a criminal conviction and no current NHS, tax or other government debt. |
Home Office will review the criminality thresholds that apply across all immigration routes. The expectation is that the rules on criminal convictions will be tightened. Revised thresholds will be set out in due course. |
| Integration |
The applicant must:
- meet English language requirements at B2 level under the Common European Framework of Reference for Languages
- pass the Life in the UK test.
|
English requirement would apply to all applicants.
B2 is a higher standard than current B1 (it changes for new Skilled Worker applicants and others from 8 January 2026). B2 is an A-level equivalent standard and requires that applicants 'can understand the main ideas of complex text on both concrete and abstract topics, including technical discussions in their field of specialisation'.
|
| Contribution |
Applicant has annual earnings above £12,570 for a minimum of 3-5 years (subject to consultation), in line with the current thresholds for paying income tax and National Insurance Contributions (NICs).
This can also be met by an alternative amount of income.
|
This will apply in all cases, including for worker dependants and dependants of British citizens.
It is not clear whether there will be exemptions after consultation for different circumstances, such as ill-health/family leave/stay at home parents.
The consultation only covers whether it applies for 3-5 years, not the principle of the income requirement.
|
| Residence |
Only lawful, continuous residence in the UK will be recognised. Individuals will not, however, normally qualify based on residence alone. |
Dependants will need to qualify for settlement in their own right settlement is no longer automatic when the main applicant qualifies. It is possible that dependants will have a different qualifying period to main applicant.
There may be new eligibility rules for child dependants that reach 18 before achieving settlement.
|
Earning a reduction to qualifying period
In most cases the default baseline qualifying period will be 10 years. However, one of the proposals subject to consultation is that the default period for Skilled Workers performing roles that are below graduate level (RQF level 3-5) will instead be 15 years.
The Home Offices proposes that certain applicant attributes can then adjust the baseline qualifying period upwards or downwards. If more than one attribute applies, only the one that causes the largest adjustment will be applied.
The proposed attributes are as follows:
| Attribute |
Baseline qualifying period |
Reduction to baseline |
Resulting qualifying period |
| Applicant has English to level C1 CEFR |
10 years for Skilled Workers in RQF 6 role and all other routes
15 years for RQF 3-5 roles: TBC following consultation
|
1 year |
9 years for Skilled Workers in RQF 6 roles
14 years for Skilled Workers in RQF 3-5 roles (TBC)
|
|
Applicant has earned a taxable income of £125,140 for 3 years immediately prior to applying for settlement
[Govt not proposing that thresholds will track future changes to the tax system]
|
10 years for Skilled Workers in RQF 6 role and all other routes.
15 years for RQF 3-5 roles: TBC following consultation.
TBC:
- situation if someone starts in a medium skilled role and switches to a graduate level role part way through residence
- gaps of unemployment between jobs?
|
Minus 7 years |
3 years for Skilled Workers in RQF 6 roles
8 years for Skilled Workers in RQF 3-5 roles (TBC) but unlikely salary will exceed this level
|
|
Applicant has earned a taxable income of £50,270 for 3 years immediately prior to applying for settlement
[Govt not proposing that thresholds will track future changes to the tax system]
|
10 years for Skilled Workers in RQF 6 role and all other routes
15 years for RQF 3-5 roles: TBC following consultation
|
Minus 5 years |
5 years for Skilled Workers in RQF 6 roles
10 years for Skilled Workers in RQF 3-5 roles (TBC)
|
| Applicant has been employed in a specified public service occupation for 5 years (likely only RQF 6 roles) |
10 years (assuming reduction only available for RQF 6 roles) |
Minus 5 years |
5 years |
|
Applicant has worked in the community (volunteering, etc)
Definition and requirements TBC
|
10 years for Skilled Workers in RQF 6 role and all other routes
15 years for RQF 3-5 roles: TBC following consultation
|
Minus 5 years |
5 years for Skilled Workers in RQF 6 roles
8 years for Skilled Workers in RQF 3-5 roles
|
| Applicant has 3 years continuous in Global Talent or Innovator Founder |
10 years |
Minus 7 years |
3 years |
Exemptions
As set out in the White Paper the consultation confirms that where there are no factors that would increase the period (like claiming public funds), the five-year route to settlement will continue for partners of British citizens (NB it's unclear whether that concession applies to dependants of other settled persons too), British Nationals Overseas (BNO) visa holders, and victims of domestic abuse. European nationals with post-Brexit residence rights under the EU Settlement Scheme will be exempt from these changes.
The consultation paper also confirms that applicants in Global Talent and Innovator Founder routes will still be potentially eligible for settlement after three years. However, the proposal suggests that unlike the current rules, the applicant will need a full three years in this route, not in a combination of routes.
Considerations that will increase the baseline qualifying period
The consultation proposes several considerations that will increase the time taken to reach settlement as follows. These can be combined with any factors that could reduce the baseline.
| Attribute |
Adjustment to baseline qualifying period |
| Applicant has been in receipt of public funds for less than 12 months during route to settlement. |
Plus 5 years |
| Applicant has been in receipt of public funds for more than 12 months during route to settlement. |
Plus 10 years |
| Applicant arrived in the UK illegally eg via small boat/clandestine, applicant entered the UK on a visit visa, or applicant has overstayed a permission for six months or more. |
Plus, up to 20 years |
Citizenship
The White Paper also stated that reforms to citizenship will be introduced and would build on changes made to settlement through the earned settlement approach. These would aim to reflect similar principles for extending qualifying periods, while allowing those who have made greater contributions to qualify sooner.
What should we do now?
The consultation is understandably causing great anxiety for many affected visa holders and their families who have relocated or remained in the UK based on a five-year pathway to settlement, only to find that the government is moving the goalposts.
- We recommend that anyone that is eligible and wishes to apply for settlement does so as soon as possible and before the end of March 2026. That applies equally to long residence (10 year) applicants before that route is removed from the rules.
- Employers and individuals should respond to the consultation by 12 February 2026 and make their views known to the Home Office.
- Sponsors and employers should consider ways to support their workforce through this period. That could be through town hall meetings, communications with affected staff, or arranging legal surgeries to provide information or planning advice.
Do contact us if you have any questions about the impact of the consultation on your or your employees' status in the UK, or to discuss your workforce planning and retention policies.
