On 28 November 2025, the government announced a consultation on reform of the earned settlement model in the UK. The consultation, ‘A Fairer Pathway to Settlement’, is open until 12 February 2026. Any individual or organisation can share their views on the proposed changes set out by the government within the consultation proposals.
Current system
Settlement (also known as indefinite leave to remain) means a person has the right to live, work and study in the UK indefinitely and without any immigration restrictions. A person can only apply for British citizenship if they have this status. It is a useful immigration status from an employer perspective as it means the person does not require sponsorship, which we all know is an expensive endeavour.
The eligibility criteria for settlement will depend on each person’s circumstances. Generally, those on work visas must have held valid permission in the UK for five years before they can apply for settlement. There are other eligibility criteria that must also be met, for example, applicants must generally not have been absent for more than 180 days across a rolling 12-month period. Migrants must also pass the ‘Life in the UK’ test to qualify for settlement. Those on Skilled Worker visas must meet the minimum financial requirements and prove that their employer continues to need them to work in their role, at least for the foreseeable future.
Proposals that are being consulted on
Following the government White Paper, ‘Restoring control over the immigration system’, released in May 2025, the government has set out proposals to increase the default qualifying residence period from 5 to 10 years, with the option to ‘earn’ settlement at an earlier date. This proposed change marks a dramatic shift from being automatically granted settlement after a set period of time, to a heavier focus on earning settlement based on good conduct, contribution and integration.
The government argues that the reason they are changing the settlement model is to ‘reward those who are making the greatest contribution, and that earnings are the best means of objectively measuring economic contribution.’
For awareness, EU nationals with pre-settled and settled status under the EU Settlement Scheme (EUSS) are not affected by the proposed changes, and their pathway to settlement will continue as it currently stands.
Under the proposals set out by the Home Office, settlement would be granted subject to satisfying a set of minimum requirements. Additional criteria would be considered to either increase or decrease the default 10-year qualifying residence period.
While no implementation date has been set, it is understood that the Home Office is expecting the changes to go live from spring 2026.
Minimum requirements
By satisfying the following minimum requirements, the qualifying period for indefinite leave to remain (ILR) would be 10 years. The minimum requirements are underpinned by four core pillars: character, integration, contribution and residence.
The minimum requirements are:
- The applicant must not be subject to the grounds for mandatory refusals. This would rule out settlement for those with criminal convictions. This is more restrictive than the current requirement not to have received a prison sentence of over one year.
- The applicant must not have current litigation, NHS, tax or other government debt.
- The applicant must meet an English language threshold of B2 under the Common European Framework of Reference for Languages (this is higher than the current standard of B1 for certain applicants, and means that the applicant is an independent user and can understand more complex texts. It also means some applicants will be subject to an English language threshold for the first time).
- The applicant must still pass the ‘Life in the UK’ test (which is also set to be reformed).
- The applicant must have annual earnings of above £12,570 for a minimum of 3-5 years before the date of application – this is in line with current thresholds for income tax and national insurance contributions. This proposal introduces a new economic requirement for certain applicants where it did not previously apply. The consultation does however seek views on whether there should be exemptions from this requirement, for example, for those who have taken family leave.
Factors decreasing the baseline qualifying period
Subject to passing the minimum requirements as set out above, an applicant may be able to decrease the baseline qualifying period for settlement of 10 years, if they are able to satisfy one of the criteria outlined in the table below.
However, it should be noted that an applicant can only use one of the following attributes. Where an applicant meets more than one attribute, they should choose the attribute that will reduce the qualifying period the most.
It should also be noted that the baseline period can also be increased (see below) and increases must be considered as well as decreases, meaning an applicant could benefit from a reduction of one year for high English language skills but still have their qualifying period increased if they have received benefits.
| Factor/Attribute | Reduction in the baseline qualifying period | Number of years until ILR can be achieved |
| Passing an English language test at the higher level of C1, i.e. an advanced level of English for proficient users. | 1 year | 9 years |
| Applicant has worked in the community (e.g. volunteering). Volunteering is defined in the consultation paper as any activity that involves spending time, unpaid, doing something that aims to benefit someone else (other than close friends or relatives), the community or the environment. Volunteering can be formal and organised by organisations or informal within communities. It should always be a free choice made by the person giving up their time. | 3-5 years | 5-7 years |
| Applicant has been employed in a specified public service occupation (such as medical or teaching professionals) at level RQF 6 (i.e. equivalent to degree level) or above. Note that both requirements must be met, and those working at below degree level would not benefit from this reduction. | 5 years | 5 years – this could mean there is no change for this cohort of applicants, provided the applicant does not fall foul of any increases. |
| Applicant has earned a taxable income of £50,270 for 3 years immediately prior to applying for settlement. | 5 years | 5 years – as above, no change to this cohort, provided the applicant does not fall foul of any increases. |
| Applicant has earned a taxable income of £125,140 for 3 years immediately prior to application date. | 7 years | 3 years – for this cohort, applicants could achieve settlement at a much earlier date than under the current framework. |
| Applicant holds a permission as the parent/partner/child of a British citizen and meets core family requirements (Not subject to consultation). | 5 years (not subject to consultation) | 5 years (not subject to consultation) |
| Applicant holds a permission granted under the British National Overseas route (Not subject to consultation). | 5 years (not subject to consultation) | 5 years (not subject to consultation) |
| Applicant has 3 years’ continuous residence in the Global Talent or Innovator Founder category. | 7 years | 3 years |
| Acknowledgement of specific and vulnerable groups having a reduction. | Subject to consultation | Subject to consultation |
Factors increasing the baseline qualifying period
In addition to factors increasing the baseline qualifying period, the government are consulting on factors that would increase the baseline qualifying period beyond the default 10-year period.
It’s also important to note that settlement could be refused altogether if the applicant did not meet the suitability criteria. The below increase will apply if, for example, despite any overstaying, the Home Office is prepared to entertain a settlement application.
| Factor/Attribute | Increase in the baseline qualifying period | Number of years until ILR can be achieved |
| Applicant has been in receipt of public funds for less than 12 months during their route to settlement. This will be the case even if the applicant’s existing permission allowed access to public funds. | 5 years | 15 years |
| Applicant has been in receipt of public funds for more than 12 months during their route to settlement. This will be the case even if the applicant’s existing permission allowed access to public funds. | 10 years | 20 years |
| Applicant arrived in the UK illegally such as via a small boat. | 20 years | 30 years |
| Applicant entered the UK on a visit visa. | 20 years | 30 years |
| Applicant has overstayed permission for six months or more. | 20 years | 30 years |
Other proposals for consultation
Beyond the factors related to increasing or decreasing the default qualifying period of 10 years, the Home Office is seeking views on increasing the qualifying period to 15 years for those in roles below RQF 6/degree level. Views are also being sought on shifting benefits access at the settlement stage (as is the current position) to only being available at the citizenship stage.
The Home Office is additionally consulting on whether and how an earned settlement system may be tailored for groups that may require such treatment in the light of their vulnerability or compassionate circumstances. It is further looking at how dependants should be considered in the earned settlement model. A potential implication as flagged above is that dependants would need to meet the mandatory criteria to settle (i.e. they would need to be working to earn at least the £12,570 threshold). However, if a main applicant was not eligible to settle (i.e. by way of their criminal convictions), then dependants would also lose their eligibility, which is another implication to the changes.
Transitional arrangements are also being consulted on by the Home Office. The aim is to have a system that aligns for both new entrants to the UK in the Skilled Worker route and others, and those who are already in the UK. However, the Home Office has been clear that it intends to apply the proposals retrospectively; a move which has already been met with harsh criticism by many.
Consequences for businesses
The proposal to increase the default qualifying period to 10 years (or beyond in some cases) is likely to drive up recruitment and employment costs for employers for the most part. For example, workers on the Skilled Worker route may need to stay on the route for longer, resulting in further fees being incurred by the employer (and in many cases, the applicants) in order to settle long term.
With five-year visas costing near £14,000 (for medium/large sponsors), the long-term costs for sponsors could be high. The change in the qualifying period could also leave employers and sponsors in a state of uncertainty.
It’s also likely to make the UK less attractive for inbound migration and exacerbate skill shortages in so-called lower skilled areas.
Perhaps one piece of good news is the proposal to reduce the qualifying period for settlement for high earners, provided they have met the high earning threshold of £125,140 for the full three-year period. While this will only benefit limited roles, it may well be an attractive option for some.
It is important for employers (as well as individuals) to take part in the consultation if they have concerns they’d like to communicate.
The consultation closes at 11:59pm on 12 February 2026.
How can we help?
If you have any questions on how these proposals will impact you or your business, please contact our Immigration team.
