UK ILR Reform Moves Step Closer to Implementation

earned settlement consultation closes

IN THIS ARTICLE

The Home Office consultation on the proposed earned settlement reforms closed on 12 February 2026, with around 130,000 responses reported to have been submitted.

The next phase is policy design and implementation. As yet, no changes to the Immigration Rules have taken effect. Existing five-year and ten-year routes to indefinite leave to remain continue to operate. However, the government has confirmed its intention to introduce a new Earned Settlement model in which settlement is linked more directly to contribution, compliance and integration.

 

Proposed ILR Reforms

 

The government has indicated that the move from a five-year baseline to a ten-year baseline for most settlement routes is the policy intention. The consultation sought views on how that framework should operate, not whether it should exist.

Under the proposed structure of an Earned Settlement regime:

 

  • The standard qualifying period for ILR would increase from five years to ten years.
  • Settlement would depend on meeting mandatory conditions, not simply residence.
  • English language requirements are expected to rise to B2 level.
  • An earnings condition assessed using HMRC data is proposed.
  • A new suitability framework for long-term status is under consideration.

 

The consultation also illustrated income-linked reductions for sustained high earners and longer timelines for roles skilled below RQF level 6, as well as extensions linked to public funds use or immigration breaches.

 

Transitional Protections?

 

The central concern raised throughout the consultation period was how the new system would apply to individuals already partway through a five-year route.

The Home Secretary has reiterated that settlement applications are assessed under the Immigration Rules in force at the date of application. That has long been the legal position. In practical terms, this means new Rules could apply to people already in the UK who have not yet applied for ILR, unless transitional protections are introduced.

The consultation asked directly about transitional arrangements. Ministers have not yet published their decision.

For applicants currently approaching five years’ residence, timing may become critical depending on how transitional provisions are framed.

 

Impact on Settlement Planning

 

If implemented largely as outlined, the reforms would alter long-term residence in three ways.

First, the route becomes longer for most applicants. A ten-year baseline changes financial planning, family timelines and expectations about when permanent residence may be secured.

Second, the route becomes more conditional. Settlement would depend on sustained earnings, compliance history and integration criteria. Gaps in employment, unresolved public debts or compliance issues could carry more weight than under the current system.

Third, the route becomes more differentiated. High earners may qualify for accelerated timelines under the proposed income-linked reductions. Lower-paid roles, particularly those below RQF level 6, may face extended qualifying periods in the illustrative examples set out in the consultation.

For many applicants, this introduces a stronger link between career progression and immigration outcomes.

 

Practical Considerations for ILR Applicants

 

It is important to separate proposal from law.

 

  • The current five-year ILR routes remain in force.
  • The ten-year long residence route remains available.
  • No mandatory B2 English requirement has yet been introduced.
  • No income-linked reductions or extensions have been legislated.

 

Until a Statement of Changes is laid before Parliament and brought into effect, the existing framework continues to apply.

For those considering a move to the UK, it would be prudent to plan on the basis that settlement may require up to ten years of lawful residence unless an accelerated route applies.

For those already in the UK:

 

  • Review your current residence timeline and projected eligibility date.
  • Assess whether you may qualify under the existing five-year framework before any new Rules take effect.
  • Ensure salary progression, tax records and compliance history are well documented.
  • Address any outstanding public debts or compliance concerns early.

 

Long-term immigration planning is likely to become more closely aligned with career and financial planning if the earned settlement framework is implemented as proposed.

 

Next Steps

 

The government will review consultation responses and publish a formal response. Any confirmed changes will be introduced through amendments to the Immigration Rules. Implementation could begin later in 2026, although precise timings have not yet been confirmed.

The earned settlement consultation stage has ended and will be followed by a change in the rules and the routes to UK settlement.

For ILR applicants and prospective applicants, this is the point at which monitoring developments closely becomes essential. The final design of the earned settlement framework will determine how significantly the path to permanent residence in the UK changes in practice.

 

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.

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