The Home Secretary Shabana Mahmood has announced details of the earned settlement proposals outlined in her May 2025 White Paper. Despite some significant changes to the initial proposals, she remains committed to increasing the baseline qualifying period for indefinite leave to remain (‘ILR’) from five to ten years. She also confirmed that they will not use volunteering to reduce eligibility periods, following significant criticism from the charity sector.
The proposals do not impact those on the EU Settlement Scheme.
This note is based on our interpretation of the Government Response to Consultation November 2026 and may change once further clarification and guidance is issued.
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How can applicants and employers prepare?
Timeline summary
Under the proposals, here is a closer look at the timeline for migrants to apply for ILR. Most migrants can currently settle within five years, with some Global Talent or Innovator Founders able to settle within three years:
- Five year route:
- those earning £50,271 or above;
- public service workers in healthcare and education (including doctors, physios, OTs, psychotherapists, nurses, dental practitioners, teachers, and further education teachers);
- family members of British citizens;
- social care workers who earn at least £25,000, and arrived or switched before May 2025;
- those on the UK Ancestry route;
- those on the Hong Kong BN(O) route; and
- refugees arriving on new safe and legal routes.
- Three year route:
- higher earners on £125,141 or above;
- those in the Highest Talent Group. The definition of the Highest Talent Group is subject to a review by the Migration Advisory Committee.
- Ten year route:
- basic rate taxpayers earning less than £50,271 (aside from qualifying care workers and public service workers as above);
- family visa holders whose sponsor holds ILR but is not a British citizen; and
- refugees who do not arrive by small boat and who are working or studying.
- Twenty year route:
- those who commit an immigration offence, including overstaying or breaching a visa condition;
- those who claim certain benefits; and
- refugees not on safe and legal routes.
- Thirty year route:
- Refugees who arrive on a small boat.
Despite transitional measures for care workers and public service workers, the policy will retrospectively affect many already in the UK who planned to apply for settlement within five years. In her statement yesterday the Home Secretary argued that migrants are informed that a visa grant does not guarantee subsequent settlement. She repeatedly maintained that applications are governed by the rules in force at submission and decision, not arrival, and that managing immigration effectively requires flexibility to amend those rules. Many MPs countered that this contradicts the fairness she claims underpins the policy.
For those who can retain their five-year qualifying period, this is welcome news albeit there are a number of new mandatory requirements which at best will increase bureaucracy and at worst will delay or prevent settlement through inadvertent oversights or unforeseeable circumstances, and in some cases will push people into more precarious human rights routes and fee waiver applications.
A ten or twenty-year qualifying period will seriously affect individuals and their families, whether already in the UK or those who come in future. Consequences include prohibitive financial strain from additional application fees, fewer opportunities to find better paid work or retrain while sponsorship remains required and poorer community integration.
The Long Residence route will close, with no transitional arrangements announced. Individuals who have spent as many as nine years in the UK on routes such as Child Student, Student, Graduate, Global Business Mobility, Youth Mobility Scheme or Temporary Worker may now need up to ten further years on a longer-term work or family route before settling. This seems particularly onerous for those who arrived young, spent their formative years and secondary and higher education here. Many of those individuals often feel British and cannot see their future anywhere but the UK.
Despite concessions for higher earners, the proposals add considerable complexity to an already challenging system and convey a message that migrants are not welcome in the UK. Overall, the proposals risk deterring the migrants the country needs and undermining the trust of those already here who have planned their and their families’ lives around the ability to settle.
Timeframe for implementation
The Home Secretary stated that the changes will begin to be raised in the December 2026 immigration rule changes and will then be rolled out over 2027.
Before implementation, the Government will publish further guidance setting out additional technical and operational detail, informed by engagement with affected groups.
Some of the requirements could be rolled out easily and could take effect sooner, such as closure of the Long Residence route, whereas other measures could require longer for the details to be fleshed out and the IT systems put into place over the course of 2027. The Government is also having to make updates following announcements in the Autumn Budget, and we are releasing a separate article on those measures, so it may delay the majority of changes until 2027.
Mandatory requirements
Certain requirements must be met regardless of earnings, length of residence or other contributions. These are the minimum mandatory requirements. They are as follows:
- Good character
- Not have Government debt
- English language and Life in the UK test
- Contribution
We look at these further below.
Good character
Criminality
The criminality threshold for ILR will be substantially tightened. Currently, less serious or minor criminal convictions including a custodial sentence of less than 12 months, a non-custodial sentence or out of court disposal are discretionary grounds for refusal, meaning that caseworkers have leeway to approve if the individual puts forward compelling circumstances.
Going forward, any criminal conviction, even an absolute discharge, conditional caution or court-imposed fine, will result in a mandatory refusal. If the individual was aged under 18 when the offence was committed, refusal will be discretionary.
No provision is mentioned for caseworkers to consider how long ago an offence occurred or the individual’s subsequent rehabilitation. This could permanently prevent some individuals from settling. Given that even some traffic fines can end up going through the criminal court, the threshold seems particularly punitive.
Immigration breaches
As outlined above, immigration breaches committed when someone is aged 18 or over, such as overstaying, breaching a visa condition or deception will result in a twenty year path to settlement.
Currently, overstaying may be disregarded where an application was made within fourteen days, either for good reason or following a previous refusal. There is no indication whether this position will be maintained in settlement applications. It is concerning that caseworkers may not have discretion to respond proportionately to minor breaches. This is particularly harsh given that the immigration system’s complexity and flaws can readily cause unintentional breaches.
No outstanding Government debt
Whilst currently outstanding NHS, tax, NI contributions or litigation debt beyond a certain threshold can result in a refusal, once the change is brought in, any level of debt will result in a mandatory refusal.
English language and Life in the UK test
Applicants must pass an English speaking and listening test at level B2, equivalent to A-level standard. Otherwise they must extend their permission until they can meet the requirement. Some may find this requirement particularly difficult to meet, even with tuition.
Applicants must pass a Life in the UK test. The contents of the test will be reviewed to better reflect life in modern Britain.
Contribution – earnings
Currently, there are minimum income or savings thresholds for settlement in certain routes such as the Skilled Worker and Partner of a British or settled person routes.
Under the proposals it appears that there will be a separate income assessment at the settlement stage in all routes, which will determine whether someone can settle at all, and how quickly they can settle. It is unclear how this interacts with the financial requirements already in place for example in the partner route.
The overall minimum income for the ten-year pathway is £12,571 for an individual and £25,142 for a couple. Those wanting to settle sooner must show earnings of £50,271 for the five-year route or £125,141 for the three-year route.
Earnings will be assessed over a longer period, to allow for periods of lower earnings for example due to maternity leave or ill health. The assessment periods are as follows:
- £12,571: must be earned in five of the seven years immediately before applying.
- £125,141: must be earned in three out of four years immediately before applying
- £50,271: must be earned in three out of five years immediately before applying.
Our understanding is that partners of a British person must meet the £12,571 earnings threshold, but that they will still be able to settle after five years without having to earn £50,271. In contrast, partners of a settled person must meet the same threshold but can only settle after five years.
Couples will be able to combine their earnings to meet the threshold and it seems that a partner may be able to rely on the British or settled person’s earnings to meet this, although this is not clear.
Until now, dependants of those on work visas have not had to meet any minimum earnings requirement to apply for ILR. From now, they will need to meet the £12,571 minimum earnings requirement, or £25,142 for a couple. A dependant partner and main applicant can combine earnings, which allows for a partner with caring responsibilities for example to work fewer hours.
The dependant partner can settle within the same qualifying period as the main applicant, i.e. if the main applicant can settle within five years they can also settle once they have completed five years’ residence.
We understand that someone in the Highest Talent Group, or in a public service health and education occupation or on the UK ancestry route and their dependant partner will need to meet the £12,571 income requirement, but that they will be eligible for the shorter pathway regardless of their earnings.
There will be exemptions for the minimum earnings requirement for children, those aged 65 and over, or those unable to meet the requirement because of a physical or mental condition.
Children
Child dependants aged under 18 can continue to settle at the same time as their parents. They are exempt from the earnings, Government debt, English language and Life in the UK requirements. They must still be of good character.
Children aged 18 to 24 who entered the UK as child dependants can settle along with their family. They will not need to meet the earnings requirement but must meet all the other requirements.
Children aged 25 who entered the UK as child dependants must qualify in their own right for settlement. This could adversely impact children whose parents are on a longer route to settlement. It could result in separation from their family and disruption of their education and career.
Vulnerable groups
The Government is still engaging with stakeholders in relation to exemptions for vulnerable groups such as:
- children and young adults who had grown up in the UK;
- people with disabilities;
- people with long-term health conditions;
- those with caring responsibilities;
- bereaved partners and parents;
- victims of domestic abuse.
They will set out detailed arrangements in relation to these groups in guidance next year.
Transitional arrangements
Social care workers
Social care workers who entered or switched into the route before May 2025 can still qualify in five years if they have earned a salary of £25,000 per year, presumably throughout the five years. If they do not qualify, they can apply for a further five year visa to allow them to meet the requirements to apply again for settlement.
From 1 February 2027 care workers who have lost their job due to the sponsor licence being removed will have 120 days to secure a job offer plus a further 60 days to resolve their visa and employment status, otherwise their visa will be curtailed.
Public Service Healthcare and Education roles below RQF6
Those in public service healthcare and education roles below RQF6 such as nursing auxiliaries and teaching assistances can settle after five years if they came to the UK before May 2025.
Pre April 2024 transitional salary in roles below RQF6
Skilled Workers who entered the route pre April 2024 in roles below RQF6 can continue to rely on the previous salary thresholds until 2035.
Example
A Skilled Worker, A, is earning £45,000 per year as an art gallery manager. Her husband is on a PBS Dependant visa and is a house husband and their children are aged 15 and 17. They have been in the UK for two years. They do not have any criminal convictions, immigration breaches or Government debt and have not claimed benefits.
They will be on the ten-year route to ILR however if A’s salary is increased to £50,271 and she earns that in each of the next three years prior to applying, then they may be able to rely on the five-year route.
They can rely entirely on A’s salary to meet the £25,142 minimum earnings requirement.
If A can settle within five years, then her husband and children can do so at the same time, regardless of her husband’s earnings.
Both children will be aged 18 to 24 when they come to apply for ILR. All four family members will need to meet the B2 English language requirement and pass the Life in the UK test and be free of criminal convictions, unpaid debt, and not have committed an immigration breach or claimed benefits. The children do not need to meet the earnings requirement.
If A’s salary does not meet the £50,271 threshold for the next three years, the family will all have to extend and either settle once she has met this requirement, or apply after ten years. By that time the eldest child will be 25. It is not entirely clear if they would be able to settle simply by meeting the £12,571 earnings requirement and other adult requirements and seems more likely that they would need to move onto another visa such as on the Student or Skilled Worker route.
How can applicants and employers prepare?
For individuals
We recommend carrying out the following steps:
1. For those who are eligible to apply for ILR now or in the coming months, do not delay and get the application in as soon as possible. It is generally possible to apply up to 28 days in advance of completing the qualifying period.
2. Those who are not eligible before the changes come in should consider how they may be impacted and whether they can carry out any steps to meet the new requirements such as whether a salary increase may be possible or whether they will need English language classes.
3. Keep an eye out for further updates, including the implementation dates and detailed guidance.
For employers
1. Consider issuing communications head of the changes coming in December and in 2027 to explain the changes and consider offering support with legal expenses where appropriate. They should provide a point of contact for concerns or questions.
2. Map the workforce and consider if any workers or sponsored workers may end up on the ten-year route and whether career progression and associated pay increases may put them into the shorter routes. Sponsors of Skilled Workers considering salary raises must be aware that it is a licence revocation ground to artificially inflate the salary of a worker to enable them to meet the salary threshold for settlement. Any increase should be in line with market rates and with increases for non-sponsored workers.
3. Given that compliance breaches, such as overstaying, working excess hours on a student visa or while in supplementary employment could lead to a 20-year qualifying period for settlement, it will be in the employer’s strong interest to tightly monitor visa expiry dates and keep in close touch with employees regarding their plans to extend their visa and to provide support with fees or signposting where appropriate. Those providing support with fees must be aware of the restrictions around repayments of fees to the employer from Skilled Workers.
4. Consider whether to provide support with English language classes or provide National Insurance contribution records.
5. Monitor implementation dates and further detail in the guidance and consider updates to employee communications once confirmed.
How we can help
We can help with the following:
1. assess the impact of the changes on your workforce and assist with workforce communications;
2. assist with individual applications for ILR or with assessments for eligibility under the current or new rules once they come in;
3. advise on compliance processes and requirements;
4. advise on compliance breaches by either the organisation or the employee; and
5. provide updates and advice on the further guidance once it is implemented.
The material in this article is provided for guidance and general information only and is not intended to constitute legal or other professional advice on which you should rely. In particular, the information should not be used as a substitute for a full and proper consultation with a suitably qualified professional. Please contact the Bates Wells team if you require further information.