Unpacking the Home Office’s Reforms to Settled Status

21 November | By Sam Cairns & Zeynep Dildar

The Home Office has released proposals that, if adopted, will fundamentally reshape the right of settlement in the UK. 

Key Takeaways

• The baseline qualifying period for indefinite leave to remain (ILR) will increase from 5 to 10 years 
• A five-year reduction can be applied to those earning above the £50,270 income threshold for three years prior.
• There is a proposal to further decrease the qualifying period to 3 years for those earning above £125,140
• Dependents will be assessed on their own merits, based on similar criteria. 
• Those in medium-skilled level occupations may see a 15-year route to settlement.

Introduction

On 20 November 2025, the Home Office released a Command Paper titled A Fairer Pathway to Settlement. This document sets out sweeping proposals that could permanently change the UK’s immigration framework, pending consultation and legislation.   

Key to the document is a change to eligibility for indefinite leave to remain (ILR). At present, most immigrants have a 5-year pathway under the new ‘Earned Settlement’ model.

But the new proposals revolve around the principle that settlement is a privilege that must be earned through contribution and integration rather than an automatic right. 

The changes will impact all individuals pursuing settlement, including those on the Skilled Worker visa route.

The baseline qualifying period will be doubled to 10 years. Earlier settlement will be available for those meeting certain criteria, such as higher earnings, working in public service or volunteering. These ideas were all raised in the Government’s immigration white paper back in the Spring. 

There will be further delays to settlement over and above the 10-year baseline for individuals deemed to contribute ‘less’ to public life. This includes those who claim benefits or those who have entered the country illegally. 

The proposals will now go to a consultation, ending in February. 

Some parts of the proposal will not be subject to consultation, meaning they will be effective upon the Home Office’s next Statement of Changes. These include the principle of earned settlement itself, plus a set settlement period of 5 years for spouses and dependents of British nationals and British Nationals (Overseas) (BN(O)s) from Hong Kong. 

The rules are intended to apply to everyone already in the UK under the relevant routes to settlement. This means they will be applied retrospectively if those eligible do not apply for ILR before the changes come into force. 

We therefore recommend that anyone eligible for ILR during the consultation period (ending 12 February 2026) submit their application to avoid stringent conditions being applied to them. 

Core principles of the new model

The adjusted model will allocate settlement periods according to the following principles: 

• Character: this includes an individual’s criminal record and prior compliance with immigration rules. It will be mandatory to meet these requirements. 
• Integration: demonstrating meaningful engagement with society, such as volunteering. 
• Contribution: sustained and measurable economic contribution to the UK. 
• Residence: lawful, continuous residence as a standard. 

Eligibility for settlement: mandatory requirements

Mandatory requirements for settlement will include meeting the old criteria for suitability as set out in Part Suitability of the Immigration Rules, meeting the English language requirement to B2 level, and passing the Life in the UK test. 

A new mandatory requirement for settlement is demonstrating annual earnings above £12,570 for a minimum of 3-5 years (in addition to specific requirements of the route to eligibility). 

Criteria for reducing the settlement period

The new earned settlement criteria will allow applicants to reduce the qualifying period for settlement by meeting certain desirability criteria.

Where more than one of the considerations applies, the largest of them would be applied: 

Parents or partners of British citizens and BNOs will continue to meet ILR requirements after 5 years. However, new mandatory requirements may be applicable here, including the requirement to have annual earnings above £12,570, subject to consultation. 

Criteria that increase the qualifying period

Conversely, the Government propose to extend the ILR qualifying period for migrants not deemed to make suitable contributions, according to the following criteria: 

There is a proposal for a separate baseline qualifying period of 15 years for low-skilled and low-wage migrants (roles at RQF levels 3-5) who arrived on the Health and Care visa, such as care workers. 

Dependants and children

Currently, dependents of those who enter and stay under the Skilled Worker and other work routes could qualify for settlement at the same time as the main visa holder. These are set to change under the new system. 

We expect this means each individual will be assessed according to their own attributes and circumstances. Similar to the current rules, the eligibility of dependents will match that of the main applicant. 

Different rules are expected to apply to children under 18. However, those over 18 at the time of application will likely be subject to 

10-year rule scrapped 

Currently, migrants who have been in the UK for a total of 10 years across different eligible routes can apply to settle if they meet the continuous residence requirements.

This will come to an end, leaving only the new earned settlement model. 

Transitional arrangements

Transitional arrangements may be put in place following the consultation period. 

If decided, such arrangements will aim to ease the impact of the policy changes and provide advantages to those already on a route to settlement. 

Citizenship  

The report mentions potential reforms to citizenship that may align with the requirements for earned settlement. The reforms will reflect similar principles for extending qualifying periods, while prioritising those deemed to have made greater contributions.  

Our recommendations 

It should be noted that the consultation period will run to 12 February 2026. Therefore most of the Command Paper’s contents remain subject to change. 

• Employers should assess workers’ eligibility for settlement to ensure settlement applications are submitted before the end of the consultation period.
• The qualifying period for ILR under the Global Talent visa is reduced to 3 years, irrespective of the category (exceptional promise or talent). Applying under the Global Talent route for eligible individuals will save employers costs. We would suggest contacting us for an eligibility assessment. 
• Employees who were previously not eligible for settlement may become eligible sooner by meeting certain criteria. We would advise assessing employees who may be eligible for settlement applications after the new changes are implemented.
• Employees should be briefed by relevant global mobility or HR teams on the proposed changes, which may affect them.

Global Talent Visa vs Skilled Worker Visa Costs 

The following table contrasts the total costs for an employee to qualify for Indefinite Leave to Remain (ILR) over a 5-year period via the Skilled Worker visa route, versus the cost to achieve ILR eligibility in just 3 years using the Global Talent visa. 

*The fees reflect the upcoming increase in costs from December 2025 

Get fully briefed on the changes

On Tuesday 25 November, our in-house experts are holding an online briefing to unpack these changes. We’ll offer practical guidance to employers on how to manage this momentous policy shift with a resilient workforce strategy. 

Secure your place now