Government proposes major overhaul of Indefinite Leave to Remain rules: what employers need to know

The Home Secretary has launched a public consultation on significant reforms to the UK Indefinite Leave to Remain (ILR) system. The plans would introduce a new contribution-based “earned settlement” model and substantially change the pathway to long-term residence for many migrants.

Under the proposals, the default qualifying period for most visa routes would increase from five to ten years. Settlement would only be granted where applicants can also show strong character, English language ability, economic contribution, and financial responsibility. Lower-paid workers and those who have relied on benefits would face much longer waits, while high earners and certain talent routes would benefit from faster access.

For employers, these changes would reshape the long-term offer available to overseas staff. Senior and highly paid roles may become more attractive, while lower-paid positions may be more difficult to promote as offering a realistic route to settlement.

Key features of the proposed model include:

• A new “earned settlement” framework based on four pillars: character, integration, contribution, and residence.

• A standard ten-year qualifying period for most routes, rising to fifteen years for lower-skilled roles below RQF level 6.

• The possibility of reduced qualifying periods for strong integration (such as English proficiency or volunteering) and higher tax contributions.

• Fast-track options for high earners, Global Talent and Innovator Founder visa holders, entrepreneurs, and frontline public service workers.

• A significantly extended wait for migrants with immigration breaches or long-term benefit reliance, with periods of up to thirty years.

• A clean criminal record requirement, with threshold details still under review.

• Transitional provisions for existing migrants to be determined following the consultation.

The consultation is open until 12 February 2026, and whilst these are currently only proposals and do not represent formal policy at this stage, employers may wish to consider how these proposals could affect workforce planning and future recruitment.

Should your organisation require guidance or support with understanding these proposals or preparing for potential changes, our Immigration Team is available to provide expert advice and assistance.