Why you should apply now for indefinite leave to remain: The impact of earned settlement proposals

Indefinite leave to remain (ILR) provides migrants in the UK with a secure and stable foundation for life, work, and integration into British society. Government proposals for ‘earned settlement’ represent a significant shift in policy, introducing changes that will affect eligibility for ILR and the process of obtaining it. The consultation is now closed, and the government may implement their new policy from as early as April 2026. It is crucial to understand the changes and take action while the current rules remain in effect.

We looked at the detail of the earned settlement proposals here.

Bates Wells submitted a detailed response to the government consultation on behalf of our clients.

Who could be most affected?

Examples of the groups most likely to be affected if the proposals are implemented are:

• Those already in the UK on visas

In the government proposals, it is unclear whether, and could be considered unlikely, that transitional arrangements will apply. If they do not, those who have arrived in the UK before the rules are implemented, will have to meet the new requirements as well.

This means that people who have planned for their futures around a five year period to ILR may soon face ten to fifteen years of visa extensions before they are eligible, along with the additional visa fees, greater dependency on sponsoring employers, and increased uncertainty which that entails.

• Partners, including partners of British citizens, partners of Irish citizens or those with ILR, and dependent partners of those on work visas

The proposals indicate that dependent partners of British citizens may need to earn settlement in their own right, for example by having earned taxable income of at least £12,750 for at least the past three to five years. For many families where the dependent partner cares for children, does not need to work, or has an undependable income, they may be left in a limbo where they have to continue extending and are unable to settle.

• Children

Children are only normally eligible for ILR where both parents are eligible to settle. If one parent is not eligible, for example because they have not met the £12,750 minimum earnings requirement, the child may be left in a limbo along with their parent. This may mean that older children wishing to go to university are saddled with international fees and ineligible for student loans, which may exclude them from university altogether.   

• Those who have earned less than £50,270 for the past three years

Those who have earned at least £50,270 in taxable income in the past three years may still be eligible to qualify for ILR after five years, which is the same as the current threshold. However, those who earn less may need to extend to ten to fifteen years. This could have a particularly harsh impact on university graduates who are unlikely to reach that salary level within two years of entering a graduate-level role, and those in lower paid, yet vital, industries, such as care workers or construction workers.

• Those who wish to apply for ILR on the grounds of Long Residence, based on periods on Student or Temporary Work, or Global Mobility visas.

There will be many who either came to attend boarding school in the UK from an early age and have gone through undergraduate and postgraduate study, who have fully integrated into the UK and who wish to establish their career and life here and who have been planning to apply for Long residence on the basis of ten years’ continuous residence in the UK. This may apply to others who have lived here in other categories, such as the Global Business Mobility route, and have extended for close to ten years.

The government are proposing to scrap this route, which could result in such individuals having to leave the UK if they do not qualify for extensions.

• Those who arrived in the UK illegally or have a history of overstaying for a longer period or with minor or historical criminal records

There are often compelling and compassionate circumstances surrounding a person’s illegal entry to or overstaying in the UK. Many such people may be forced to extend for twenty years on this basis. In addition, those with historical or minor criminal records may be prevented from applying for ILR altogether, even where they are rehabilitated and their contribution to the UK far outweighs any past conviction.

• Those wanting to intending to apply for British citizenship

Proposals for earned citizenship are likely to closely echo those for ILR, and may come in shortly after the ILR changes are made. It is possible that those wishing to obtain British citizenship are prevented or delayed if, for example, minimum qualifying periods are extended, there are minimum earnings requirements, or no criminal record is permitted.

How are employers impacted?

• Employers may need to cover substantially higher visa fees (additional costs of around £10,000 to £14,000 per worker)
• Staff members may choose to move away from the UK or may not be eligible to extend for the full qualifying period
• Staff may decide not to move to the UK given that the immigration requirements are uncompetitive and unpredictable

Tips and how we can help

We strongly advise individuals who wish to obtain ILR at some stage in the UK, whether as the partner of a British citizen or settled person, or on any work or family route, to:

1. Apply for ILR before April 2026, and for citizenship as soon as possible.

Review your pathway to ILR and to citizenship. If you are eligible now, we strongly advise you consider applying immediately. In most cases, you can apply 28 days before the five year anniversary of your visa’s ‘valid from’ date.

2. Take immigration advice on eligibility

Consider taking advice on making an application, and regarding how you might be impacted if you are not eligible to apply now.

3. Consider engaging with your local MP

Although the consultation is closed, MPs can still raise issues on behalf of constituents.

Organisations should consider:

1. Ongoing communication with employees, leadership and other stakeholders;

2. Whether to give employees the opportunity to take immigration advice;

3. Which employees are eligible to apply for ILR now;

4. The potential cost to the organisation and employee of the government fees required for additional extensions and future budgets needed;

5. Keep an eye out for the implementation of the proposals.

Conclusion

The proposed earned settlement changes mark a pivotal moment for migrants in the UK. Acting now to secure ILR under the current system is the most effective way to protect your future, avoid additional hurdles, and maintain certainty. If you are affected, take immediate steps to apply, and stay informed about further developments as the proposals are implemented.