The “Earned Settlement” Overhaul: Key Changes to UK Permanent Residency Rules

On 20 November 2025, the UK Government launched a major public consultation on reforming Indefinite Leave to Remain (ILR), also called “settlement”, under a new “earned settlement” model. The consultation paper – A Fairer Pathway to Settlement (CP 1448) – runs to 60 pages and sits alongside the 2025 Immigration White Paper, Restoring Control over the Immigration System.

This article sets out the proposals in clear language for migrants and their families, covering all the main elements of the consultation so that you understand what is being suggested and where you may wish to respond.

Important: These are proposals, not yet law. Current ILR applications are still considered under the existing Immigration Rules. The Government indicates that changes to ILR qualifying periods are planned to begin in April 2026, subject to the outcome of this consultation and changes to the Rules.
House of Commons Library

1. What is settlement / ILR under the current system?

At the moment, settlement (ILR) means you can live in the UK permanently without time restrictions. A person with ILR can:

• Work without needing a visa
• Study without immigration conditions
• Access public funds (welfare benefits and certain housing support) if they meet the normal eligibility rules
• Usually apply for British citizenship after a further 12 months

Settlement can only be taken away in limited situations – for example, serious criminality, fraud, or if someone spends more than 2 years outside the UK.

Around 40 routes under the Immigration Rules currently lead to settlement, broadly grouped as:

• Work routes – e.g. Skilled Worker, Health and Care, Global Talent, Scale-up, Innovator Founder, UK Ancestry, Turkish ECAA
• Family routes – partners, parents and certain other relatives of British or settled people, and some family members of refugees
• Protection routes – refugees and people granted humanitarian protection
• Other routes – including long residence, private life, victims of domestic abuse, bereaved partners

Typical qualifying periods today include:

• 5 years for most work routes (Skilled Worker, Health and Care, Global Talent in many cases)
• 5 years for most family routes (though some people end up on 10‑year private life or family paths)
• 5 years for refugees and people with humanitarian protection
• 10 years for long residence / private life routes
• Immediate settlement for some victims of domestic abuse and bereaved partners

2. Why is the Government proposing change?

The consultation paper explains that the Government expects settlement grants to rise sharply in the coming years, largely because of high migration between 2021 and 2024, especially on the Health and Care visa.

Key points from the evidence section:

• Net migration between 2021 and 2024 is estimated at an additional 2.6 million people.
• About 1.6 million people are forecast to obtain settlement between 2026 and 2030, peaking at around 450,000 grants in 2028.
• Large numbers of projected settlement grants come from the Skilled Worker/Health and Care and family routes, with a rapidly growing cohort from Health and Care visas.

The Government argues that:

• Settlement and citizenship are “privileges, not automatic rights”
• The current system relies too heavily on time spent in the UK rather than on contribution, integration and good conduct
• Rising settlement volumes increase pressure on public services and welfare spending

On this basis, ministers want a more selective, contribution‑based model that slows the flow to settlement for some groups, speeds it up for high contributors, and potentially moves access to many benefits from settlement to citizenship.

3. The new “earned settlement” model – overview

The consultation proposes a fundamental shift:

Settlement will no longer be granted simply after a fixed number of years. Migrants will need to earn settlement through sustained good conduct, contribution and integration.

3.1 Four core pillars

The new system is built around four pillars:

1-Character

• You must meet “suitability” requirements (no serious criminality, compliance with immigration rules, public good considerations).
• The Government’s expectation is that people should not be able to settle with a criminal record; thresholds are being reviewed.

2-Integration

• You must show meaningful engagement with life in the UK.
• This includes English language at a higher B2 level and passing the Life in the UK test for settlement.

3-Contribution

• The system will reward sustained economic contribution.
• Earnings and tax/National Insurance contributions will be central, with additional credit for public service work and community volunteering.

4-Residence

• Lawful, continuous residence in the UK still matters.
• But time alone will not usually be enough; it will be combined with the other pillars.

3.2 Baseline qualifying periods

The model uses a “time adjustment” approach, starting from a standard qualifying period and then adjusting it up or down depending on your circumstances.

The default proposals are:

• 10‑year baseline for most migrants (doubling the current 5‑year standard for many work and family routes).
• 20‑year baseline for recognised refugees who come to the UK via asylum, with potential reductions if they move into work or study.
• 10‑year baseline for refugees resettled under official programmes (bringing them in line with other “planned” routes).

3.3 Mandatory conditions for everyone

To qualify for settlement at all (regardless of how many years you have been here), the consultation proposes mandatory requirements in three of the four pillars:

Character / suitability

• You must meet the general “suitability” rules, including:
  • No disqualifying criminal conviction
  • Compliance with immigration conditions
• You must have no outstanding government debt, such as unpaid NHS charges, tax debts or certain other public debts.

Integration

• English at B2 level (Common European Framework)
• A pass in the Life in the UK test

Contribution

• You must have earned at least around £12,570 a year (aligned with current income tax / NIC thresholds) for 3–5 years immediately before applying – the exact duration is one of the consultation questions.

If you do not meet these mandatory conditions, you would not qualify for settlement, regardless of how long you have lived in the UK.

4. How your qualifying period could be shorter

The consultation sets out detailed proposals for reductions to the 10‑year baseline where people make stronger contributions. Only the largest applicable reduction from this list would be applied in any case.

4.1 Higher English language

• English at C1 level (higher than the B2 minimum): 1‑year reduction

4.2 Higher earners

If, for the 3 years immediately before applying, your taxable income is:

• At or above £50,270 (current higher‑rate tax threshold):  5‑year reduction
• At or above £125,140 (current additional‑rate threshold): 7‑year reduction

In effect, the highest earners could qualify after 3 years if all other conditions are met.

4.3 Public service work

• Working in specified public service occupations (for example, medical and teaching roles in public services) for 5 years: 5‑year reduction

This is designed so that many frontline public sector workers can still reach settlement at 5 years, despite the new 10‑year baseline.

4.4 Community volunteering

• Significant volunteering or community work: proposed 3–5‑year reduction, depending on the level of involvement.

The consultation asks how volunteering should be defined and evidenced.

4.5 Certain routes and family connections

Some groups keep, effectively, a 5‑year route:

• Partners, parents and children of British citizens who meet the core family rules: 5‑year reduction (so settlement after 5 years).
• Hong Kong BN(O) route: 5‑year reduction (so settlement after 5 years).
• Global Talent and Innovator Founder visa holders with 3 years’ continuous residence: 7‑year reduction (so settlement typically after 3 years, as now).
• The Government is also consulting on whether family members of Global Talent/Innovator should benefit from a 5‑year reduction.

5. How your qualifying period could be longer

The proposals also allow for increases to the qualifying period, again applying only the largest increase from this list for each person.

5.1 Use of public funds

• If you have received public funds for less than 12 months while on your route to settlement: +5 years
• If you have received public funds for more than 12 months: +10 years

This could push some migrants’ total qualifying period to 15 or 20 years.

5.2 Irregular entry / overstaying / visit visas

Where someone has not followed normal immigration routes, the Government proposes increases of up to 20 years to the baseline:

• Entered the UK illegally (for example, small boat or clandestine entry): up to +20 years
• Entered originally on a visit visa and later switched: up to +20 years
• Overstayed previous permission by 6 months or more: up to +20 years

Combined with the 10‑year baseline, this could mean a route to settlement as long as 30 years for some people with irregular histories.

5.3 Longer routes for lower‑skilled or lower‑paid work

The consultation also proposes increases for some categories of work:

• For workers sponsored in roles below RQF Level 6 (below degree level) – for example some roles previously in the Health and Care route – the Government asks whether the standard qualifying period should be 15 years.
• There is also a specific proposal for a 15‑year baseline for many who arrived on the Health and Care visa, reflecting concerns about long‑term fiscal costs and high levels of dependent family members.

6. Who is in scope and who is out of scope?

The consultation makes clear who these proposals might affect – and who is not included.

6.1 People not affected by these reforms

The following groups are out of scope:

• Anyone who already holds settlement / ILR – their status will not be taken away.
• People with settled or pre‑settled status under the EU Settlement Scheme (EUSS), protected by the Withdrawal Agreement.
• People with settlement under the Windrush Scheme.
• The question of a clear pathway for children in care and care leavers is explicitly out of scope and will be addressed separately.

6.2 People who remain on shorter or special routes

Some groups will still have quicker or protected routes, although details are being consulted on:

• Spouses/partners and children of British citizens – 5‑year pathway (subject to meeting mandatory conditions).
• Hong Kong BN(O) visa holders – 5‑year pathway.
• Global Talent / Innovator Founder – typically 3‑year pathway, with a 7‑year reduction.
• Resettled refugees, victims of domestic abuse, bereaved partners, some adult dependent relatives and others with strong compassionate circumstances – their fast‑track or immediate routes to settlement will remain, although the Government is consulting on how to fit these into the earned settlement framework.
• HM Armed Forces personnel and their families – the Government is not proposing a worse pathway than at present and is seeking views in line with the Armed Forces Covenant.

6.3 Refugees and humanitarian routes

• Recognised refugees who obtain protection through the asylum system would start from a 20‑year qualifying period, with the possibility of reductions if they move into work or study routes.
• Refugees resettled via official programmes would start from 10 years, as part of a planned system reflecting local capacity.

7. Settlement, benefits and citizenship

One of the most significant – and controversial – aspects of the consultation is the proposal to change the relationship between settlement, benefits and citizenship.

7.1 No Recourse to Public Funds at settlement

The Home Office is consulting on whether:

• It should be legally possible to grant settlement with a “No Recourse to Public Funds” (NRPF) condition, so that:
  • Migrants who obtain ILR would continue not to have access to most welfare benefits and social housing, in line with their visa conditions.
  • Full access to benefits would instead be linked mainly to British citizenship, not settlement.

This would be a major change. Under the current system, ILR normally removes the NRPF condition and opens access to qualifying benefits.

7.2 Longer waits for those relying on benefits

As set out above, the consultation also proposes extending the qualifying period where people have claimed public funds. In practice, this could mean:

• Migrants who rely on benefits may have to wait 20 years or more for settlement.
• Some may never qualify if they cannot meet the earnings and contribution thresholds.

8. Transitional arrangements – people already in the UK

The consultation takes a strong starting position:

The new model is proposed to apply to everyone currently in the UK who has not yet obtained settlement, even if they are already part way through a route that currently leads to ILR after 5 or 10 years.

This would mean:

• Many people who expected to qualify after 5 years could instead face a 10‑year baseline, longer if they have used public funds or have immigration breaches.
• Care workers and other medium‑skilled workers could see their path extended to 15 years.
• People who entered illegally, overstayed or switched from visit visas could face 20–30 year qualifying periods.

However, the Government is consulting on transitional protections – for example, for people who are close to the current ILR qualifying point or who entered the system in good faith under the old rules. The consultation specifically asks about:

• Whether there should be “cut‑off” dates.
• Whether some groups already in the UK should keep today’s rules.
• How equality and fairness concerns should be handled.

9. What exactly is the consultation asking?

Annex B of the consultation paper contains a detailed questionnaire. Rather than listing every question, these are the main areas on which views are invited:

1-Baseline qualifying periods

• Is a 10‑year baseline for most migrants appropriate?
• Should workers in roles below RQF Level 6 have a 15‑year baseline?
• Are the proposed 20‑year baselines for refugees justified?

2-Mandatory contribution requirements

• Is it fair to require earnings of at least around £12,570 for 3–5 years?
• Should some groups (for example, carers, disabled people, part‑time workers) be exempt?

3-Reductions for contribution and integration

• Are the proposed income thresholds (£50,270 and £125,140) and reduction periods (5 and 7 years) appropriate?
• Which public service roles should qualify for a 5‑year reduction?
• How should volunteering be defined and evidenced for a 3–5‑year reduction?
• Should family members of Global Talent and Innovator Founder visa holders benefit from reduced periods?

4-Increases for non‑compliance and use of public funds

• Should illegal entry, overstaying or switching from visit visas increase the qualifying period by up to 20 years?
• Should claiming public funds add 5 or 10 years?
• Are there circumstances where these increases should not apply?

5-No Recourse to Public Funds and benefits at citizenship

• Should it be possible to attach NRPF to settlement?
• Should access to benefits and social housing be reserved mostly for British citizens?

6-Dependants and children

• How should adult dependants’ qualifying periods be set in their own right?
• What should happen when children turn 18 during their parents’ route to settlement?
• Should there be age‑based cut‑offs and waivers of some requirements for young adults?

7-Vulnerable groups and special cases

• How should the model apply to victims of domestic abuse, bereaved partners, adult dependent relatives, resettled refugees, and other vulnerable groups?
• Should any additional groups have special protection?

8-HM Armed Forces

• How should non‑UK Armed Forces personnel and their families be treated, in line with the Armed Forces Covenant?

9-Transitional arrangements

• To what extent should people already in the UK be protected from retroactive changes?
• What transitional measures are most important?

10-Impact and equality considerations

• How will these proposals affect different groups by gender, ethnicity, disability, family situation, income level and region?
• What mitigating measures, if any, should be introduced?

The consultation is open until 11:59pm on 12 February 2026, and responses can be submitted online via the Home Office survey link.

10. What does this mean if you are planning to apply for ILR?

Because the proposals are still being consulted on, nothing is certain. However, if they are implemented broadly as described, some likely effects are:

Skilled workers and other economic migrants

• Many Skilled Worker migrants would move from a 5‑year ILR route to a 10‑year baseline.
• If your role is below RQF 6, you may be pushed to a 15‑year baseline, unless you upskill or change role.
• You could shorten the wait by:
  • Increasing your earnings into the higher‑rate or additional‑rate band
  • Working in a qualifying public service role
  • Building a record of community volunteering
  • Improving your English to at least C1 level

Health and Care visa holders

• Many Health and Care workers are explicitly highlighted as a group for stricter controls, with a proposed 15‑year baseline.
• Large families and reliance on public funds could lead to very long routes to settlement or, in some cases, no route at all.

Family migrants

• Partners and children of British citizens should continue to have a 5‑year route, but must still meet:
  • Higher English requirements (B2)
  • Earnings and contribution thresholds
• Other family routes (for example partners of migrants) may face 10‑year baselines or longer, depending on contribution and use of benefits.

Refugees and humanitarian cases

• Recognised refugees from the asylum system could face 20‑year routes, though with potential reductions if they move into work or study routes.
• Resettled refugees would have 10‑year routes, with some protections.
• Victims of trafficking, domestic abuse, and others in compassionate situations should still have tailored routes, but exactly how is under consultation.

People with irregular histories

• If you entered illegally, began on a visit visa, or overstayed, you may be looking at a route of up to 30 years, if you qualify at all.
• The separate 10‑year long residence route would disappear; instead, time would be recognised within the new time‑adjustment system.

11. What should migrants do now?

While the consultation is ongoing and the law has not yet changed, migrants and their families can sensibly:

• Review your current timeline to ILR under the existing rules and compare it with these proposals.
• Strengthen your position where possible now:
  • Improve your English towards B2/C1
  • Avoid any immigration breaches or overstaying
  • Keep clear records of earnings, tax and National Insurance contributions
  • Consider how you might evidence volunteering or community work
• If you are relatively close to qualifying under today’s rules, take advice on whether it is realistic to apply before expected rule changes.
• Consider submitting a consultation response, especially if you or your sector would be particularly affected.

This is a complex and fast‑moving area. The proposals could have serious consequences for long‑term plans, family life and financial commitments.

12. How Garth Coates Solicitors can help

At this stage, the proposals are just that – proposals. However, they are detailed and far‑reaching, and the consultation paper makes clear that the Government intends to move quickly.

Mr Garth Coates, Principal Partner and Senior Solicitor, comments:

“For many of our clients, the most worrying feature is the idea that new rules could apply to people who are already in the system and expecting ILR after five years. Anyone who is within a couple of years of settlement should have their case reviewed now, so they understand their options under both the current and proposed regimes.”

Ms Michele Martin, Partner and Senior Solicitor, notes:

“The consultation raises serious questions about fairness for lower‑paid workers and families who have organised their lives around the existing settlement timetable. It is crucial that those communities engage with the consultation and that we make sure their experiences are properly reflected in the final rules.”

Ms Leqa Al Habib, Partner and Senior Solicitor, adds:

“We are particularly concerned about the impact on refugees, young adults who have grown up in the UK, and people with complex immigration histories. The removal of the stand‑alone long residence route and the possibility of 20‑ or 30‑year pathways will need very careful scrutiny.”

Mr Celemet Yener, Partner and Senior Solicitor, emphasises:

“Not everyone is affected in the same way. Clients with EU Settlement Scheme status, Windrush grants or existing ILR will not see their core status removed, but they may still be affected in other areas of the system. A tailored assessment is essential.”

At Garth Coates Solicitors, we can:

• Assess how the proposals may affect your current or future route to ILR
• Advise on timing and strategy for applications under the existing rules
• Help you prepare evidence of contribution, integration and compliance
• Assist organisations and individuals who wish to respond to the consultation in a structured way

This article is for general information only and does not constitute legal advice. For personalised advice on your situation, you should seek specialist immigration advice.