Ten Years to Indefinite Leave to Remain? Understanding the UK’s “Earned Settlement” Proposals

Since the release of the Immigration White Paper in May, UK immigration practitioners have fielded frequent questions from clients on whether the qualifying period for Indefinite Leave to Remain (ILR or “Settlement”) would be extended and whether such changes might be applied retrospectively. Following yesterday’s announcement, the Home Office has now provided an outline of how the future settlement system may look.

Described as “the biggest shake-up of the legal migration system in nearly half a century”, the policy statement introduces a consultation on a new, contribution-based framework for earning permanent residence in the UK. The proposals represent the most significant overhaul of settlement rules in decades, aiming to make settlement a privilege that is “earned” through sustained contribution, rather than an automatic entitlement based on time spent in the UK alone.

Background: The Government’s Rationale

According to the Home Office, the reforms are designed to balance fairness to migrants who contribute positively to British life with the need to maintain public confidence in the immigration system. The statement sets out that settlement should serve as “a reward for integration, compliance, and contribution,” consistent with broader government goals to reduce net migration and ensure a managed, skills-focused system.

The announcement also reflects concerns that permanent settlement should not follow automatically from temporary migration. It proposes introducing clearer measures of what “earning settlement” looks like, recognising and fast tracking those who are self-sufficient, law-abiding, and integrated to settlement in the UK.

Core Proposals

1. Baseline Qualifying Period

The most notable proposal is to increase the standard qualifying period for most migrants from five to ten years. Exceptions include those on the family route, EU Settlement Scheme, individuals from the Windrush generation, and BN(O) Hong Kong nationals, all of whom will continue to have a five-year route to settlement. However, for some humanitarian routes (such as refugees on core protection support), the route could extend up to twenty years.

2. The Four Pillars of “Earned Settlement”

The framework is structured around four “pillars”, reflecting the Home Office’s claim that settlement should be accessible only to those who demonstrate long-term commitment to the UK:

• Character – A requirement to maintain a clean criminal record and adhere fully to immigration law will be mandatory.
• Integration – Proof of meaningful participation in British life, including reaching at least B2 CEFR English proficiency and passing the Life in the UK Test.
• Contribution – Demonstrable economic or social contribution, for example through employment meeting a minimum income threshold (currently suggested as £12,570 per year) or through recognised voluntary service.
• Residence – Continuous lawful residence remains the foundation of eligibility, though it is no longer sufficient on its own.

3. Accelerators and Penalties: Time Adjustments

The proposed points system introduces flexibility within the standard ten-year qualifying period. Time may be reduced where contribution or integration exceeds baseline expectations:

• High earners (£50,270+ for three years): a reduction of 5 years
• Top earners (£125,140+ for three years): a reduction of 7 years
• Public service workers: a reduction of 5 years
• Recognised volunteers/community contributors: a reduction between 3 to 5 years
• Advanced English proficiency (C1 or higher): a reduction of 1 year

Time could be extended where an applicant has relied on public funds, entered the UK unlawfully, or breached immigration conditions:

• Claiming public funds: an increase between 5 to 10 years
• Illegal entry, overstaying, or entering as a visitor and overstaying: an increase of up to 20 years

This announcement marks a move towards a more dynamic, merit-based approach to obtaining settlement in the UK by rewarding positive integration and deterring non-compliance.

4. Access to Public Funds

Another key consultation question is whether access to public funds should remain restricted until citizenship, rather than being granted to those who have settlement.

The government has argued that this would create a clearer distinction between permanent residence and full citizenship, ensuring that those accessing benefits have demonstrated a deeper and sustained connection to the UK.

5. Transitional Arrangements

The consultation seeks views on how to transition from the current five-year ILR framework. The Home Office has proposed that new rules would apply to everyone who has not yet obtained ILR when they come into effect.

Existing ILR holders would retain their status, but those mid-route to obtaining ILR could see their qualifying time adjusted unless transitional protections are introduced.

6. Lower-Skilled Workers and the Care Sector

One of the most significant proposed changes affects lower-skilled sponsored workers, including those on the Health and Care visa. For this group, the qualifying period could be extended to fifteen years.

The Home Office justifies this by arguing that while such workers meet essential labour needs, their roles are often temporary and they do not need long-term settlement.

Broader Policy Context and Implications

The government has framed the proposed reforms as being in response to record levels of net migration, estimated at 2.6 million between 2021 and 2024. The Home Secretary’s statement stresses the dual goal of maintaining the UK’s openness to talent while rebuilding public confidence through a “fairer pathway” grounded in contribution and responsibility.

However, there are warns of potential unintended consequences. Extending settlement timelines could deter overseas talent, increase administrative burden on employers and create uncertainty for those already in the UK.

For skilled and high-earning migrants, the new framework could offer opportunities for accelerated settlement recognition. Those in key public sector roles or community service may also benefit from shorter routes. On the other hand, individuals in lower-paid or part-time roles may face longer waits even when they have lived, worked, and paid taxes in the UK for many years.

Next Steps

The consultation remains open until 12 February 2026, with any resulting amendments to the Immigration Rules expected to come in force by April 2026. If you would like to participate in the consultation, you are invited to share your views via the official consultation portal:

Home Office Consultation on Earned Settlement

For those currently planning a route to settlement or sponsoring employees under the Skilled Worker or visa schemes, immigration advice will be essential to navigate potential changes. Employers should review workforce planning, as longer settlement pathways may affect retention strategies and long-term recruitment costs.

The Immigration Team at Edwin Coe remains ready to discuss how these proposals might affect you or your business, please get in touch with our Head of Immigration, Sundeep Rathod.