Recasting Permanent Residence: The Emerging Framework for Earned Settlement in the UK
Key takeaways
- The Government proposes replacing time-based ILR entitlement with an earned-settlement model, prioritising measurable economic and civic contribution.
- Most migrants will face longer residence requirements: standard five‑year routes likely ten years, many lower‑skilled Skilled Workers defaulting to 15 years.
- Accelerated settlement can be achieved by sustained high earnings, recognised public service or voluntary engagement, reducing qualifying periods by up to seven years.
- Implementation is expected to begin from April 2026; retrospective application and transitional protections remain under review pending the March Statement of Changes.
- Employers must audit sponsored staff now, prompt eligible ILR applications before changes take effect, and plan for higher sponsorship costs and compliance.
Introduction
The Government’s consultation on the proposed “earned settlement” framework closed on 12 February 2026, marking the beginning of the next stage in what may prove to be one of the most consequential reforms of the UK immigration system in recent decades. The policy direction is clear: the route to indefinite leave to remain (ILR) is intended to shift from a predominantly time-based entitlement to a model grounded in measurable contribution and integration.
This article outlines the principal features of the proposed regime and considers its practical implications for migrants and sponsoring employers.
A shift away from the time-based model
Under the current framework, eligibility for ILR is primarily determined by completion of a specified period of lawful residence — most commonly five years — combined with compliance with the Immigration Rules. The earned settlement model would depart from this structure, introducing a system in which the passage of time alone would no longer suffice.
The consultation proposes increasing the standard qualifying period for ILR from five to ten years for most migrants. More significantly, individuals sponsored in Skilled Worker roles below RQF Level 6 would be subject to a default qualifying period of 15 years.
If implemented, these changes would materially alter the expectations of those who relocated to the UK under the five-year pathway to settlement and recalibrate long-term immigration planning across multiple sectors.
Accelerated settlement and extended qualifying periods
Although the baseline residence requirements would be extended, the proposals also introduce mechanisms that allow applicants to reduce the qualifying period.
In particular, sustained high earnings are identified as a potential basis for accelerated settlement. Individuals earning in excess of £125,140 per annum for three consecutive years may qualify for a reduction of up to seven years in the overall residence requirement. The consultation also contemplates reductions based on public service or meaningful community engagement, including recognised voluntary activity.
Conversely, the qualifying period may be extended in circumstances involving immigration breaches, criminal convictions, or recourse to public funds. In certain cases, the cumulative effect of adverse factors can result in waiting periods of up to 30 years before eligibility for ILR arises.
Collectively, these measures introduce a more discretionary, outcome-focused pathway to settlement, reducing the predictability of the current rules.
Retrospective application and transitional considerations
Among the most controversial elements of the proposals is the Government’s stated intention to apply the revised criteria to individuals already in the UK under existing visa categories.
If enacted without meaningful transitional protections, migrants who commenced residence under a five-year settlement route could become subject to extended qualifying periods once the new framework is introduced. Phased implementation is anticipated to begin in April 2026.
The consultation invited views on whether transitional arrangements should be adopted. During a Westminster Hall debate on 2 February, the Minister for Migration and Citizenship, Mike Tapp, confirmed that issues relating to retrospectivity and transitional provisions remain under review. However, the Government has reiterated its commitment in principle to the earned settlement model.
It has also been clarified that the proposed changes would not affect individuals who already hold ILR, those with settled or pre-settled status under the EU Settlement Scheme, or those granted status under the Windrush arrangements.
Parliamentary scrutiny and stakeholder engagement
In parallel with the Government’s consultation, the Home Affairs Select Committee conducted a separate inquiry into the broader policy implications of reforming the ILR framework. That inquiry, which concluded on 2 December 2025, gathered evidence from legal practitioners, employers, representative organisations and other stakeholders within the immigration sector.
The Committee’s involvement reflects the constitutional and practical significance of restructuring the permanent residence regime, particularly given its potential impact on labour markets, business continuity, family stability and long-term integration.
Implications for employers and sponsored workers
For organisations operating under the sponsor licence regime, the proposed reforms introduce heightened uncertainty. Employers should conduct a comprehensive review of their sponsored workforce to identify individuals who may qualify for ILR under the current rules prior to the anticipated implementation date.
Individuals who are already eligible to apply for ILR may wish to consider submitting applications without delay, subject to appropriate legal advice.
From a strategic perspective, extended qualifying periods are likely to lengthen the duration of sponsorship, with corresponding increases in Home Office application fees, Immigration Skills Charge liabilities and ongoing compliance obligations. In some cases, the total sponsorship cost over the course of employment may increase substantially. This may, in turn, affect the United Kingdom’s competitiveness in attracting and retaining international talent.
Enhanced mandatory requirements
In addition to extended residence periods, the proposed model introduces more stringent mandatory criteria.
Applicants would be required to demonstrate:
- No outstanding NHS charges or other government debt.
- Successful completion of the Life in the UK test.
- English language proficiency at level B2 of the Common European Framework of Reference for Languages (CEFR), an increase from the current B1 requirement.
- A minimum annual income of £12,570 for a period of three to five years immediately preceding the application, subject to limited exceptions.
The introduction of a sustained earnings requirement represents a material policy development. For certain categories of applicants — including those with caring responsibilities or those temporarily outside the labour market — satisfying this threshold may present practical challenges.
Next steps
With the consultation process now concluded, attention turns to the Government’s formal response and the anticipated Statement of Changes, expected in March. Until the final amendments to the Immigration Rules are laid before Parliament, a degree of uncertainty will remain regarding drafting detail and transitional safeguards.
Nonetheless, the policy trajectory is evident: access to settlement in the United Kingdom is likely to become more conditional, more protracted and more closely aligned with demonstrable economic and civic contribution. Migrants and employers should seek timely professional advice to assess exposure and prepare for the forthcoming legislative changes.
