UK Immigration: Major Changes to Indefinite Leave to Remain Under the New Earned Settlement Model

The Government has announced significant changes to the UK’s immigration settlement system, introducing a new model under which migrants will need to demonstrate their contribution to British society before being granted indefinite leave to remain (ILR).

Announced by Home Secretary Shabana Mahmood in the House of Commons on 2 November 2026, the proposed Earned Settlement model represents a substantial change to the route to permanent residence in the UK. For most migrants, the qualifying period for settlement will increase from five to ten years, with shorter or longer periods depending on an applicant’s circumstances.

The reforms are intended to place greater emphasis on economic contribution, integration and good character. They will have significant implications for individuals and families already living in the UK, as well as employers sponsoring overseas workers.

1. A new standard qualifying period of ten years

Under the existing system, many migrants, including those on the Skilled Worker and family visa routes, can generally apply for ILR after five years of continuous qualifying residence, provided they meet the relevant requirements.

Under the new Earned Settlement model, the standard qualifying period will increase to ten years for most migrants.

The time required to qualify for settlement will depend on factors including earnings, occupation, immigration compliance and contribution to the UK.

The Government has announced the following broad qualifying periods:

The precise eligibility criteria and how the different factors will be assessed will be important in determining which period applies to an individual applicant.

2. Mandatory requirements for settlement

Regardless of the qualifying period, applicants will need to satisfy four mandatory conditions:

• Criminality: Applicants must have a spotless criminal record, replacing the current threshold based on a 12-month suspended sentence.
• English language: Applicants must demonstrate a high standard of English, equivalent to A-Level English as a foreign language.
• Financial compliance: Applicants must have no outstanding debts owed to the taxpayer.
• National Insurance contributions: Applicants must demonstrate a record of sustained National Insurance contributions.

These requirements are intended to apply to everyone seeking settlement, regardless of when they arrived in the UK.

The higher English-language requirement may be particularly significant for applicants who have already completed several years of residence but have not previously needed to demonstrate English proficiency at this level.

3. Special provisions for care workers

The Government has announced transitional arrangements for certain care workers already in the UK, following concerns about the impact of the original proposals on the adult social care sector.

Care workers who have complied with their visa conditions and earned at least £25,000 a year will be able to retain a five-year route to settlement.

Those who do not meet the criteria, estimated by the Government to represent around a quarter of the relevant group, will be offered a further five-year visa.

They will only be eligible to apply for settlement after completing that additional period.

The announcement recognises the contribution made by care workers during the COVID-19 pandemic, while also addressing concerns about exploitation within the sponsorship system.

Employers and workers in the care sector should review their circumstances carefully, particularly where earnings, employment history or compliance with sponsorship conditions may affect eligibility.

4. Longer settlement periods for certain migrants

The reforms also introduce longer qualifying periods for some migrants who have breached Immigration Rules.

Those who have entered the UK through small boats or other clandestine means of entry will face an additional ten-year waiting period. In some cases, this could result in a settlement period of up to 30 years.

The Government has also announced that migrants who have breached immigration rules will generally need to wait at least 20 years before qualifying for settlement.

The precise application of these provisions will depend on the relevant immigration history and the detailed rules.

5. What happens to people already living in the UK?

One of the most significant aspects of the announcement is that the reforms are intended to apply regardless of when a migrant arrived in the UK.

This raises important questions for people who are already on a route to settlement and who may have planned their lives around the existing five-year qualifying period.

For example, someone who arrived in the UK on a Skilled Worker visa in 2022 and expected to qualify for ILR in 2027 may be affected by the new ten-year standard qualifying period, depending on the final transitional provisions and their individual circumstances.

The Government has stated that settlement rules will apply at the point of application, as they have historically. However, the detailed implementation arrangements will be crucial for those who are already approaching eligibility.

Anyone who expects to qualify for ILR in the coming months should seek advice on whether an application can be made under the existing rules and whether any transitional protections apply.

6. Implications for employers and sponsored workers

The reforms may have practical consequences for UK employers who rely on overseas workers, particularly those sponsoring employees on the Skilled Worker route.

A longer period before settlement may mean:

• Employees remain subject to sponsorship requirements for longer.
• Employers need to maintain sponsor compliance and monitoring arrangements over an extended period.
• Workers may face additional visa application fees and Immigration Health Surcharge costs.
• Recruitment and retention may become more challenging in sectors that depend on international talent.

Employers should consider reviewing their immigration policies, workforce planning and arrangements for supporting sponsored employees.

Sponsored workers should also ensure that they understand their current visa conditions and maintain a record of their employment, earnings, immigration status and National Insurance contributions.

7. What should individuals do now?

The announcement does not mean that every migrant will automatically need to wait ten years before applying for settlement. The applicable period will depend on the individual’s immigration route, circumstances and the final rules.

Individuals who are approaching ILR eligibility should consider:

• Checking their current qualifying period and expected eligibility date.
• Reviewing their continuous residence and immigration compliance history.
• Keeping evidence of employment, earnings and National Insurance contributions.
• Assessing whether they may qualify for a shorter settlement period.
• Obtaining advice before delaying or submitting an ILR application.

The detailed Immigration Rules and transitional provisions will need to be reviewed as they become available.

Conclusion

The Earned Settlement model represents a major change to the UK’s approach to permanent residence. By linking settlement more closely to economic contribution, integration and good character, the Government intends to introduce a more selective system. See here for more information: https://www.gov.uk/government/news/home-secretary-unveils-new-rules-for-migrants-settling-in-the-uk

For migrants already living and working in the UK, the reforms may affect long-term plans, family circumstances and the timing of settlement applications. For employers, they may create additional responsibilities in supporting sponsored workers and retaining overseas talent.

As the detailed rules emerge, individuals and employers should obtain tailored immigration advice to understand how the changes may affect their circumstances.

Carter Lemon Camerons LLP advises individuals, families and businesses on UK immigration matters, including settlement applications, Skilled Worker visas and sponsor licence compliance. Please contact our immigration team for advice on how the announced reforms may affect you.