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Much Awaited Proposed Changes to Indefinite Leave to Remain: What We Know So Far

Following a consultation that received over 200,000 responses, the Government has now published further detail on its proposed ‘Earned Settlement’ reforms. The key points include:  

Changes to the Qualifying Period

The current standard five-year route to settlement is set to be replaced with different qualifying periods based on financial and occupational requirements. Certain groups, including those with status under the EU Settlement Scheme or Hong Kong British National (Overseas) route visa route, fall outside of the proposed changes.

3-year pathway

Available to applicants earning more than £125,141 per year and those granted permission in ‘high talent’ routes.

5-year pathway

Available to applicants:

  • Earning more than £50,271 per year; or
  • Those working in certain public sector roles, which includes teachers; or
  • Those who have a ‘British connection’ such as partners of British citizens.

10 year pathway

Applicable to those earning less than £50,271 per year and not working in a qualifying public sector occupation.

Individuals on the 10-year route will be able to continue extending their permission until they are eligible for settlement. 

There will also be a requirement to earn at least £12,571 per year at the point of applying for settlement. However, exemptions to this earnings threshold are expected where it would be inappropriate to require an applicant to meet it. We know that exemptions will apply to children, those aged over 65, and applicants with a physical or mental health condition. Further clarification is still awaited on other exemptions, including the position of individuals sponsored under the Minister of Religion route who, due to the nature of their vocation, receive no salary. We will publish further updates on this in due course.

Mandatory Eligibility Requirements

Under the proposals, all ILR applicants will also need to meet the following requirements:

  • Have no criminal record - representing a significantly stricter requirement.
  • Demonstrate English language proficiency at B2 level.
  • Have no outstanding government debt.
  • Have made at least three years of National Insurance contributions.

Transitional Arrangements - Care Workers and Certain Health/Education Occupations

The proposed transitional provisions are limited and currently apply only to care workers and those in healthcare and education occupations below RQF6 (which includes teaching assistants).

 These confirm that:

  • Those sponsored before May 2025 who have met their visa conditions and earned at least £25,000 per year will remain eligible to settle after five years.
  • Care workers sponsored prior to this date who did not meet their visa conditions will be given a second opportunity through a new five-year Health and Care visa. Settlement will thereafter be available upon completion of this new five-year period.
  • Those sponsored after May 2025 will be subject to the 10 year qualifying period.

Next Steps and Timing

The Government's next step will be to publish an impact assessment. It is expected that draft Immigration Rules will begin to be laid from December 2026 and the reforms are expected to be implemented during 2027.

Whilst the announcements provide greater clarity on the Government's intended Earned Settlement framework, a number of important questions remain unanswered. Further detail is expected when the impact assessment and draft Immigration Rules are published.

Stone King will continue to provide updates on these proposals and their potential impact on our clients as further information becomes available. In the meantime, please do get in touch if you would like to discuss how the proposed changes may affect you, your employees, or your organisation.

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