Immigration – Earned settlement (ILR) changes expected

The government’s latest Settlement proposals will no longer be granted automatically after a fixed qualifying period. Instead, applicants will need to earn it by demonstrating sustained good conduct, contribution and integration.

The Home Affairs Committee (the Committee) has published a report on the government’s “earned settlement” proposals which, if implemented, will mean that settlement (a person’s right to live in the UK permanently without any immigration restrictions (also known as Indefinite Leave to Remain (ILR))) would no longer usually follow a standard five-year route, but would instead depend on a new “earned settlement” model with qualifying periods increased or reduced based on contribution-related criteria. Individuals will be able to reduce the 10 year qualifying period based on their contributions to the UK economy and society.

What is earned settlement?

Settlement is another word for indefinite leave to remain (ILR).

If someone has ILR it means that there is no time limit on their ability to stay in the UK. They can work and study without restrictions, are eligible for welfare benefits and perhaps most significantly no longer need to renew their visas at significant cost. ILR can also be a step towards applying for British citizenship.

The ‘earned settlement’ proposals are complex but the central idea is that the baseline qualifying period for settlement will double from five years to a default of 10 years. From there, the earned settlement framework proposes for time to be added or deducted based on contributions and conduct covering English language, income, receiving public funds, and breaches of immigration law.

How will ILR work under the new rules?

If the proposed changes become law, the starting point is a 10-year baseline qualifying period.

The new Settlement model will be based on four core pillars:

• Character: Applicants will be refused if they fail to meet core character and conduct requirements such as criminal record and compliance with immigration requirements. It will be mandatory to meet these requirements.
• Integration: Applicants are required to demonstrate meaningful contributions to engagement with British society. Applicants must meet the English requirement at level B2 (increased from B1) and pass the Life in the UK test (to be reformed) unless exempt.
• Contribution: Accelerated paths to Settlement will be rewarded to those who have made sustained and measurable economic contributions to the UK primarily through employment and work. Applicants must have earned more than £12,570 for 3-5 years before applying for ILR.
• Residence: The Reformed Settlement system will no longer reward Settlement on the basis or residence alone. Instead, the new system will recognise lawful and continuous residence in the UK.

Factors which will reduce the baseline period for ILR

Factors which will increase the baseline period for ILR

Recommendations

The Committee’s recommendations are as follows.

Economic contribution and minimum income

The government’s proposals of requiring all immigrants to earn at least £12,570 a year in order to be able to settle permanently in the UK would apply to economic migrants, family migrants and arrivals on humanitarian routes. The Committee recommended that there should be clear, reasonable exemptions to the minimum income rule (and separately recommended that reductions to settlement waiting periods based on fiscal contribution should be assessed at household rather than individual level), including for disabled people, pension‑age individuals, full‑time students and full‑time carers.

If the government imposes a 15‑year route for lower‑paid workers, the Committee recommended that it should be based on income not RQF level, or justify using RQF with clear rationale. For adult social care workers in particular, there should be urgent support for decent pay and conditions and exploration of flexible visas.

The Committee also suggested that the Home Office should explore more flexible visa arrangements for workers it is planning to place on long routes to settlement, so they are not reliant on a particular employer to maintain their immigration status. Workers granted sponsored visas could transition to a more flexible visa after a set amount of time.

Children

The Committee recommended that:

• Children who arrive at a young age and grow up in the UK should be granted settled status by the age of 18 without needing to fulfil the requirements of the “earned settlement” model, in recognition of the fact that Britain is their home. Children who arrive at a later stage (for example, mid-teens) should have clear, fair and accessible pathways to settlement that do not inhibit them from beginning their adult lives.
• In cases where parents are placed on different routes to settlement, children should achieve settlement with whichever parent settles first.
• The government should also maintain the five-year private life route for children and young people who have lived in the UK for most of their lives, as a backstop and for where this would be a faster route to settlement than granting it at 18. Fees applied to these children and young people should be set at a level no higher than the administrative cost of processing the applications.
• The Home Office should review barriers to the registration of children and young adults as British citizens in light of the proposed changes to routes to settlement and take action to improve access to citizenship for children and young adults who are entitled to register as British citizens. This could include only charging applicants for registration the administrative cost of processing their application and running an awareness campaign to promote registration.

Ten-year family or private life route

The Committee recommended that people who under the current system would be on a ten-year family or private life route to settlement be given a route under the new rules that is reasonable and achievable. People should not be placed on a 30-year route to settlement. The Committee recommended that the Home Office should increase the duration of leave to remain on the family or private life route to five years, and set visa fees for people granted leave on the basis of their family and private life at no higher than the cost of administration.

Implementation and transitional arrangements

The government proposals suggested that the “earned settlement” regime will begin to be implemented from April 2026. The Committee recommended that the Home Office should provide a clear and realistic implementation timeline, so that people can make informed decisions about their future.

The Committee recommended that there should be transitional arrangements, for people already in the UK, who are affected by changes to routes to settlement. There should be specific protections for vulnerable people who may struggle to meet the criteria of the new system. The changes should not be applied to people in the UK who arrived before 2021 and would under the current rules be on track to settle in the UK through a ten-year route.

How we can help

Contact us for advice on how these proposals could impact you. Let us guide in making a successful application before the changes are implemented.