What HR need to know about the new 'earned settlement' proposals

The UK Government’s Immigration White Paper (published in May 2025) set out major plans to reform the UK’s immigration system, including the rules around settlement. On 20 November 2025, the UK Government set out in more detail its proposals for a new ‘earned settlement’ model of immigration in its ‘A Fairer Pathway to Settlement’ statement. A consultation opened on the same date and closed on 12 February 2026.

This blog provides an overview of the proposed changes under the earned settlement model and how they might affect employers. The detail of the changes are not yet finalised.

Earned settlement

Background

The proposed ‘earned settlement’ model intends to shift away from granting settlement after a fixed period, towards an approach based on long-term contribution to British life and society. The rationale is that settlement should be a privilege that must be ‘earned’, and not a right that is automatically granted on the basis of residence alone.

Settlement (also known as Indefinite Leave to Remain ('ILR')) is a stepping stone for becoming a British citizen and means that there is no time limit on an individual’s right to stay, work, and study in the UK (provided that the individual does not lose that status by leaving the UK for a specific period).

The new rules are complex but, in summary, they propose to:

• introduce a set of minimum mandatory requirements which must be met by individuals applying for settlement;
• raise the baseline qualifying periods for settlement, which may be adjusted upwards or downwards; and
• abolish the current long residence route (10 years).

Mandatory requirements

Under the new rules, all applicants must meet certain requirements to be eligible for settlement. These are:

• Suitability requirements - not having a criminal conviction; no government debt (e.g., litigation, NHS, tax).
• Integration requirements - English language proficiency at B2 Level (increased from the current B1 Level); the applicant must have passed the Life in the UK test.
• Contribution requirement - the applicant must have had annual earnings above £12,750 for at least 3 to 5 years.

The Government is not consulting on these proposed mandatory requirements, except for the contribution requirement, where it is seeking views on the length of time for which an applicant must have had an earned income.

While the contribution requirement is unlikely to impact those working for you in the UK with a visa, they could have a significant impact on non-working partners (who will need to meet the ILR requirements themselves). This may become a concern for some of your employees if they are able to achieve ILR but their partner/spouse cannot. This change may also make the UK a less attractive option to certain skilled workers if the settlement model is prohibitive to a particular family set up (i.e. one parent is not earning income).

Qualifying period of settlement and the ‘time-adjustment’ model

Under the current rules, the baseline qualifying period for settlement is, in many cases, 5 years. This means that an individual must have continuously lived in the UK with a visa on a route to settlement for at least 5 years to be eligible to apply for settlement/indefinite leave to remain.

There are some faster routes to settlement (e.g., Global Talent - 3 years in some cases), and some which require a longer qualifying period (usually 10 years). Some routes allow for immediate settlement (e.g., for certain vulnerable groups).

Increase to baseline qualifying period

For most applicants, the baseline qualifying period will be increased to 10 years if the changes are implemented as planned.

For Skilled Workers in a role below RQF Level 6, which would include medium skilled roles, the baseline qualifying period will be increased to 15 years. This would impact care workers and others carrying out medium skilled roles.

‘Time-adjustment’ model

It is proposed that the baseline qualifying periods will operate on a ‘time-adjustment’ model, whereby they may be increased or reduced by certain factors relating to contribution, integration, entry and residence.

The factors that will reduce the baseline qualifying periods are set out in the table below:

The factors that will increase the baseline qualifying periods are set out in the table below:

Three key points should be noted:

• Where more than one factor applies, only one of them (i.e., the one that causes the largest adjustment - whether an increase or reduction) will apply.
• Where both an ‘increasing’ factor and a ‘decreasing’ factor apply, the adjustments would be combined.
• Any increase will take precedence over any reduction to the baseline.

Long resident route abolished

It is proposed that the current long residence route (10 years) will be abolished and superseded by the time-adjustment model set out above.

When are these changes coming into force?

The consultation on the proposed earned settlement regime closed on 12 February 2026. Despite the Government's initial intention to have these changes take effect from April 2026, the Home Secretary has indicated to the media that the new changes may now not come into effect until Autumn 2026.

What are the practical implications for employers?

These changes are not yet in final form. However, the following points should be considered:

• Budgeting for sponsorship - if the changes are implemented as planned, employees who do not meet the conditions allowing for a reduced baseline qualifying period (such as those earning less than £50,270 or those not employed in a public service occupation) will have to spend a longer period time of time on a Skilled Worker visa (or other visas) before they can apply for settlement. This will lead to increased costs for employers who sponsor employees (certificate of sponsorship fees, immigration skills charges and visa fees for those who pick up such costs). Employers may need to budget for this.
• Salary thresholds - Employers should be aware of the salary thresholds and their impact on the qualifying baseline periods.
• Choice of occupation code - Workers in lower skilled roles may spend 15 years on a visa before reaching settlement. The choice of occupation code has therefore become more critical than ever - if you are deciding on a medium skilled job code, note the consequences.
• Applying for settlement - Those eligible for settlement under the current rules may want to apply as soon as possible and before the rules change to ensure they are not disadvantaged under the new rules. Employees may have questions about the new regime and so employers may want to signpost employees to official sources of information or guidance pages once the details of the proposals are finalised.
• Transitional measures - While the consultation sought views on how far the implementation of the earned settlement model should be accompanied by transitional measures, the Government has stated that it intends to apply the new rules to those already on a pathway to settlement. This means that these rules would apply retrospectively and individuals who are due to qualify for settled status in the coming months or years may be required to remain in the UK for a longer period.
• Switching to Global Talent - Sponsored workers who may have to spend longer in the UK under the new rules should consider whether they are eligible for the Global Talent visa which may provide an alternative, shorter route to settlement. Employers may want to have discussions with potentially eligible employees and provide the relevant support.
• Unaffected groups - Those who already hold settlement (including those with settled status under the EU Settlement Scheme) or who have been granted settlement under the Windrush Scheme will not be affected by the proposed changes.

If you have any questions about these proposed changes, or if you require any assistance with sponsorships, please get in contact with a member of the Brodies Employment & Immigration team. Please also see our recent webinar where we discussed these changes.