UK settlement reform consultation

The Home Office has published (20 November 2025) the long-awaited consultation on reforming settlement (Indefinite Leave to Remain) through an “earned settlement” model.

While these are only proposals at this stage, the direction of travel is clear: the residential qualifying period to settlement would no longer be an automatic five years. Instead, a ‘time adjustment’ model would apply where the qualifying period could be adjusted up or down according to defined factors. 

The proposed model is based on four core principles - Character, Integration, Contribution and Residence. The Consultation which is open until February 2026 also indicates that individuals who have not secured settlement at implementation may be moved to the new framework and transitional arrangements (if any) will be set out following the consultation. 

Proposed qualifying period for settlement 

• 10 years: the default qualifying period for most economic migrants (including skilled workers).
• 15 years: roles below RQF level 6 (e.g. many health care roles) or where an individual has been in receipt of public funds for less than 12 months.
• 20 years: where an individual has been in receipt of public funds for more than 12 months.
• Up to 30 years: where the applicant originally entered illegally or where there has been a visitor entry/overstay of 6 months or more.

Proposed accelerators for settlement

• 3 years: those sponsored workers earning £125,140 plus for the three years immediately prior to their settlement application, and holders of Global Talent or Innovator Founder visas.
• 5 years: those sponsored workers earning £50,270 plus for three years immediately prior to their settlement application, and specified public-service workers.
• Additional, smaller reductions are proposed for higher English language competency (C1 level of CEFR) and community volunteering (typically 1 to 5 years off the 10-year baseline).

Impact on employers 

While the consultation contains welcome proposals for higher earning skilled workers with salaries above £125,140 (a potential 3-year route to settlement) and for those earning £50,270 and above (a reduced 5-year qualifying period), it brings more uncertainty for lower-paid roles particularly in the health and care sector. 

Employers should anticipate more extension applications, which will come with higher ongoing visa costs and potential retention challenges where the talent pipeline is restricted. A longer sponsorship period will lengthen the compliance tail so it is important that employers tighten their compliance including record-keeping, reporting and right to work processes. Employers must be open and transparent with candidates at an early stage, that settlement may take longer than the current five years unless accelerators apply. 

We strongly recommend that employers engage with and respond to the consultation that closes on 12 February 2026. 

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