The Home Office has launched a consultation on a new, contribution-based ‘Earned Settlement system that would replace the long-standing five-year route to Indefinite Leave to Remain (ILR) for most migrants.
The Home Secretary’s ‘command paper’ sets out what could be a fundamental shift in UK ILR rules: settlement would no longer be presented as a predictable milestone after five years, but as something to be earned through sustained economic activity, stronger integration requirements and stricter suitability standards.
A public consultation is now open until 12 February 2026, and the proposals have not yet taken effect. The current rules continue to apply. If implemented in their current form, the settlement landscape for workers, families and employers will change materially.
A New ILR Baseline of Ten Years
At the centre of the proposals is the replacement of the standard five-year qualifying period with a ten-year baseline for most routes leading to ILR. This new baseline is designed to sit across the system, absorbing the function of the existing long residence route, which the paper proposes to abolish as a standalone route.
The government’s position is that settlement should reflect “long-term integration and contribution”.
Under the new model, the ten-year period becomes the anchor point from which adjustments, upwards or downwards, are made based on the individual’s record of conduct, earnings, contributions and any periods of irregularity or benefit use.
Proposed New ILR Requirements
Alongside the longer residence requirement, the proposals introduce a set of mandatory conditions that every applicant would need to meet. These include:
- Suitability requirements under the new Part Suitability, with the government’s stated expectation that people should not normally be able to settle with a criminal record
- B2-level English language ability, with a higher C1 level attracting limited reductions in qualifying time
Successful completion of the Life in the UK test - A sustained period of earnings above the income tax and National Insurance threshold (currently £12,570)
- No outstanding NHS, tax, litigation or other government debt
Failing any of these conditions would prevent settlement, regardless of how long the person has lived or worked in the UK.
As such, duration of residence alone will no longer be enough if the proposals go ahead.
Faster Settlement for High Earners and High-Skill Routes
The paper proposes a series of time reductions for applicants who demonstrate higher levels of contribution. These operate as offsets against the ten-year baseline.
The most significant reductions relate to income:
- Taxable income above £125,140 for three years: minus seven years, producing a three-year route
- Taxable income above £50,270 for three years: minus five years, effectively maintaining a five-year route
These reductions apply only where all mandatory conditions are met and no upward adjustments apply.
Certain high-skill routes also receive preferential treatment. Global Talent and Innovator Founder visa holders could benefit from the same seven-year reduction, giving a potential three-year pathway, mirroring (and replacing) existing accelerated settlement rules for those categories.
Longer Routes for Lower-Paid Roles and Benefit Use
While some applicants may qualify sooner, many others face longer routes. The government is consulting on a 15-year standard for Skilled Workers in roles below RQF Level 6, which includes most Health and Care Worker visa roles.
In addition, the paper sets out substantial penalties for use of public funds:
- Public funds for under 12 months: +5 years
- Public funds for 12 months or more: +10 years
This creates potential settlement timelines of 20 years for some applicants.
For those with a history of illegal entry, overstaying or misuse of visit permissions, the adjustments become more severe. Some illustrated scenarios in the paper show total qualifying periods reaching 30 years before settlement.
Family Members and Out-of-Scope Groups
Family routes are not exempt from the new framework. Partners, parents and children of British citizens and BN(O) status holders are brought into the earned settlement model, but retain an effective five-year route through a fixed time reduction.
Other dependants, particularly adult dependants of sponsored workers, may have qualifying periods assessed independently, meaning they may reach settlement earlier or later than the main applicant.
In contrast, several groups are explicitly out of scope of the reforms:
- Those who already hold ILR
- People with EU Settlement Scheme status
- Windrush scheme cases
- Certain protection routes
These individuals will not be brought into the earned settlement system.
Implications of ILR Changes
What is clear is that the UK is preparing for one of the most far-reaching reforms to settlement in over a decade. Employers, applicants and advisers should begin planning for the possibility of a system in which settlement is no longer a five-year expectation, but a conditional reward for sustained performance, contribution and compliance.
For many migrants, settlement will become a more conditional, less predictable long-term objective. A decade of compliance, continuous earnings above the tax threshold, meeting higher English requirements, avoiding benefit reliance and maintaining a clean suitability record all become essential components.
For employers, the consequences are significant. The traditional five-year incentive that underpinned many sponsorship decisions may diminish for a large portion of the workforce, particularly in lower-paid sectors. Recruitment and retention challenges may intensify, and businesses will need more robust internal processes to support workers over prolonged immigration journeys, monitor status risks and manage the implications of job
Next Steps
The consultation closes 12 February 2026. No rule changes have yet been made, and existing ILR rules and routes remain fully in force. Depending on feedback, the government may revise the proposals before laying formal changes to the Immigration Rules.
Read the full Home Office document, A Fairer Path to Settlement, here.
Author
Gill Laing is a qualified Legal Researcher & Analyst with niche specialisms in Law, Tax, Human Resources, Immigration & Employment Law.
Gill is a Multiple Business Owner and the Managing Director of Prof Services - a Marketing Agency for the Professional Services Sector.
