Earned Settlement — Reshaping the UK’s Settlement System

At a Glance

• To further highlight the extent to which the government is determined to control the pathways to settlement, subject to the consultation and a transitional arrangement, the new rules will apply to those who are already in the UK. This has been a major point of discussion amongst immigration law practitioners and other stakeholders. 
• The Home Office has opened consultation for the proposed changes until 12 February 2026. The Home Secretary confirmed the government’s intention for implementing these changes from April 2026.
• Once the new settlement rules are in place, the government will focus on updating citizenship requirements under the British Nationality Act 1981, aligning them with the settlement reforms and rewarding those who have made greater contributions. 
• These measures aim to strike the balance of managing net migration and settlement in the UK while ensuring a competitive workforce by addressing both controls and strong rules for settlement, and supporting a strong economy by incentivising talented individuals through reduction of barriers to settlement. 

In November 2025, the UK government released “A Fairer Pathway to Settlement”, a major consultation proposing significant reform to the rules governing Indefinite Leave to Remain (ILR) or “settlement” in the United Kingdom. This follows the Immigration White Paper (May 2025), which set out a broader strategy to remodel the permanent residence system into one that is more controlled, rules-based, and rooted in contribution and integration rather than the mere passage of time of residence in the UK.

The White Paper introduced the idea that, in the future, settlement and citizenship would be “earned privileges”, with stronger expectations around economic contribution, integration, and good conduct. The newly proposed earned-settlement model is therefore the practical implementation of that policy direction.

These proposals are largely driven by unprecedented levels of migration between 2021 and 2024, during which the UK experienced roughly 2.6 million more arrivals than departures, many of whom are dependent family members of individuals who arrived in the UK under work or student routes. A substantial proportion of these individuals are on routes that would normally make them eligible for ILR from 2026 onwards, including between 1.3 and 2.2 million from 2026 to 2030. This spike in net migration and, subsequently, individuals who will be eligible for settlement is driven by the recent government’s extremely open border policy; for example, the Health Care visa was introduced to fill up to 40,000 jobs within the care sector, but instead “saw the arrival of 616,000 individuals from 2022 to 2024”, over half of whom were dependent family members of workers. The government argues that allowing this cohort to transition to settlement under current rules would create a “cliff-edge” that the system and public services are not equipped to handle. For example, the current ILR system entitles settled people to access public funds and free-of-charge access to the National Health Service. The proposed reforms aim to manage that pressure to public services and align settlement with the White Paper’s modernisation agenda, which proposed to curb net migration by creating a stricter framework for eligibility — e.g., by increasing the minimum income requirement for a British citizen to sponsor a foreign family member from £18,600 to £29,000, largely limiting Skilled Worker eligible roles to RQF level 6 (equivalent to a bachelor’s degree) and above, and increasing the minimum salary threshold for a Skilled Worker visa to £41,700 per annum, amongst other changes. The new proposals aim to further continue this trend by introducing additional conditions to the criteria for settlement, in addition to residence.

The consultation sets out a complete restructuring of ILR, replacing strict time-based entitlements with a single, flexible, earned-settlement framework applicable to nearly all migrants. The proposal also details circumstances in which individuals may lose entitlement or increase barriers to settlement. 

Applicability

To further highlight the extent to which the government is determined to control the pathways to settlement, subject to the consultation and a transitional arrangement, the new rules will apply to those who are already in the UK. This has been a major point of discussion amongst immigration law practitioners and other stakeholders. 

Out of Scope 

The following groups are excluded from the proposals and will continue to rely on their existing pathways to settlement: 

• Individuals who already hold ILR
• EU Settlement status holders
• Family members of British citizens and settled persons
• British National (Overseas) status holders
• Windrush Scheme
• Children in care and care leavers
• HM Armed Forces and their family members — subject to a consultation, but the government does not intend to implement major changes to their conditions
• Bereaved partners and children of British citizens or settled persons
• Children applying based on long residence, 7-year rules or parental relationships

The Current ILR System 

Before these proposed changes, ILR generally requires:

• Five years of residence on a qualifying route — e.g., Skilled Worker or Ancestry visa route
• Route-specific requirement — e.g., minimum salary thresholds for Skilled Worker visa holders
• English language proficiency of at least a B1 Level on the CEFR scale, unless an exemption applies
• Passing the Life in the UK Test
• Compliance with criminality thresholds
• Observance of absences limits (commonly 180 days per 12 months)

Individuals granted settlement under the current system are able to access public funds.

Additionally, the UK currently allows ILR after 10 years of continuous lawful residence across any combination of visa categories, known as the Long Residence route. This route will be made obsolete by the new proposals. Simply living in the UK for 10 years will no longer be sufficient.

The New Earned-Settlement Framework

The new model introduces a single, unified baseline of a 10-year qualifying period before a person may be eligible for settlement and introduces the following minimum requirements an applicant for settlement must meet to qualify:

• The applicant must meet Part Suitability of the Immigration Rules / comply with criminality thresholds. 
• The applicant must have at the time of applying no current litigation, NHS, tax or other government debt. 
• English language proficiency of at least a B2 Level on the CEFR scale, unless an exemption applies. 
  
  • The government already announced the increase of the minimum English language proficiency requirement from B1 to B2 level for relevant work visa routes. 
• Passing the Life in the UK Test. 
• Contribution to the Exchequer by having annual earnings above £12,570.
  • Note: The majority of the eligible immigration routes have a much higher minimum income threshold — e.g., £41,700 per annum under the Skilled Worker route. 

Beyond these core requirements, the government proposes a modular system where the 10-year baseline can be reduced or extended depending on an individual’s circumstances — e.g., income and skill level, conduct, criminal record, compliance with immigration rules, the method by which the individual first arrived in the UK, and their use of the public funds.

Some of the proposed adjustments include:

Criteria That Can Reduce the Qualifying Period 

• English language proficiency of at least a C1 Level on the CEFR scale = minus 1 year.
• Taxable income of at least £125,140 for 3 years immediately prior to applying for settlement = minus 7 years. 
• Taxable income of at least £50,270 for 3 years immediately prior to applying for settlement = minus 5 years. 
• Global Talent worker or Innovator Founder (minimum 3 years of continuous residence) = minus 7 years. 
• Employment in a specified public service occupation, e.g., health care or teach professionals (minimum RQF level 6 roles) = minus 5 years. 
• Contributions to the local community, e.g., volunteering = minus 3-5 years. 
• Family members of British citizens and settled persons = minus 5 years (technically this category is out of scope of the proposals). 
• British National (Overseas) nationals and status holders = minus 5 years (technically this category is out of scope of the proposals). 
• Specific and vulnerable groups = subject consultation. 

Note: For each application, only the factor that leads to the largest reduction will be applied, and any extra years will override reductions to the baseline.

Criteria That Can Increase the Qualifying Period

• Receiving public funds for less than 12 months during route to settlement = plus 5 years
• Receiving public funds for more than 12 months during route to settlement = plus 10 years
• Illegal arrivals to the UK — e.g., small boat/clandestine = plus 20 years
• First entry into the UK on a visit visa = plus 20 years
• Overstaying a permission for six months or more = plus 20 years

Note: For each application, only the factor producing the largest increase will apply, taking precedence over any baseline reductions.

In addition to the above, the government has proposed a baseline 15-year qualifying period for individuals in lower skilled roles (i.e., RQF levels 3-5) and Health Care visa holders. 

Dependent Family Members — Partners and Children 

Under the current system, dependent family members of those who arrived under work routes will typically be granted settlement at the same time as the principal status holder (the migrant worker) without having to meet any additional requirement, other than the English language requirement. The government is considering provisions that would make the qualifying period of adult dependent relatives subject “to their own attributes and circumstances”, instead of qualifying automatically through the principal status holder (although the principal status holder will still need to qualify in order for the dependents to be eligible). It appears the government is committed to making this a reality. 

The question now is whether individuals who first entered as the dependent children of a migrant worker and become adults before qualifying for settlement will be subject to their own conditions, independent from the main application. The government will likely allow these individuals to qualify automatically, in line with the main status holder, however this will be subject to an age-determined cut-off period. 

No Recourse to Public Funds 

Under these proposals, the government intends to implement the condition that individuals granted settlement will not have recourse to public funds, in line with the stated intention to alleviate pressure on the public coffers. 

Citizenship 

Once the new settlement rules are in place, the government will focus on updating citizenship requirements under the British Nationality Act 1981, aligning them with the settlement reforms and rewarding those who have made greater contributions. The hope is this will ensure a clear and coherent path from settlement to citizenship.

Consultation 

The Home Office has opened consultation for the proposed changes until 12 February 2026. The Home Secretary confirmed the government’s intention for implementing these changes from April 2026. 

Conclusion 

The intention to reduce net migration has been clear for a number of years and across different governments. Immigration law practitioners and other stakeholders have been expecting a reshuffle of the system; however, the extent of these proposals goes beyond those expectations. 

The government faces the challenging task of managing net migration and settlement in the UK while ensuring a competitive workforce, which is crucial to maintaining a strong economy, especially in light of increased competition from other countries. These measures aim to strike that balance by addressing both controls, by implementing strong rules for settlement, and supporting a strong economy by incentivising talented individuals through reduction of barriers to settlement.