UK Earned Settlement reforms: who could still qualify for ILR after five years

On 2 November 2026, Home Secretary Shabana Mahmood confirmed the Government’s policy for reforming indefinite leave to remain (ILR) under a new “Earned Settlement” model.

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The Government intends to double the standard qualifying period for settlement from five to ten years. However, the time an individual would need to wait could vary depending on factors including earnings, occupation and immigration history.

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Importantly, these changes are not yet in force. The existing Immigration Rules continue to apply. The Government expects to lay the first changes in December 2026, with initial measures expected to take effect from January 2027 and further reforms during 2027 and 2028.

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The final position for individual applicants, including people with applications already under consideration, will depend on the implementing Immigration Rules.

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For broader information about UK immigration routes, visit our United Kingdom immigration page.

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How long would it take to qualify for ILR under Earned Settlement?

Under the announced policy, the Home Office would assess earnings over specified periods before an applicant applies for settlement.

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This means that a recent salary increase would not necessarily make someone immediately eligible for a shorter settlement pathway. The required earnings would generally need to have been sustained for the relevant period.

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Three-year settlement pathway

An applicant earning at least £125,141 a year in three of the preceding four years could qualify for settlement after three years.

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A separate three-year pathway would also remain available to qualifying applicants under the Global Talent and Innovator Founder routes.

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Five-year settlement pathway

An applicant earning at least £50,271 a year in three of the preceding five years could qualify after five years.

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Other five-year pathways would remain available for specified public-service occupations and people with recognised British connections.

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These include eligible family members of British citizens, qualifying UK Ancestry applicants and people on the Hong Kong British National (Overseas) route.

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Ten-year settlement pathway

Ten years would become the standard qualifying period.

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Under the standard earnings test, applicants would need to demonstrate annual earnings of at least £12,571 in five of the preceding seven years, subject to applicable exemptions and household provisions.

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The Government has dropped its earlier proposal for a 15-year baseline for workers in occupations below graduate level.

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Twenty-year settlement pathway

Specified immigration breaches committed as an adult could place an applicant on a 20-year pathway, even where they otherwise meet a higher earnings threshold.

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Examples identified in the announced policy include:

• overstaying;
• breaching a visa condition; and
• using deception in an immigration application.

In addition, applicants relying on the three-, five- or ten-year routes would generally need to have spent the five years immediately before applying without accessing specified public funds.

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Continued access to those public funds could result in a 20-year pathway. Further detail is still required on which benefits and safeguards will apply.

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Which other ILR requirements would change?

The Earned Settlement policy would also introduce changes relating to criminality, government debt, English-language ability and knowledge of life in the UK.

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Criminality and government debt

Under the announced policy, an adult UK criminal record would lead to refusal of settlement.

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The Government intends this to extend mandatory refusal to recorded disposals including conditional cautions and court-imposed fines.

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Overseas convictions could also result in refusal, although discretion may apply in relation to offences committed while an individual was under 18.

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Applicants would also be expected to clear outstanding debts owed to the Government, including:

• unpaid tax;
• National Insurance contributions;
• NHS charges; and
• litigation debt owed to the Home Office.

English language and Life in the UK requirements

The standard English-language requirement would increase to B2, compared with the current B1 settlement standard applying in relevant routes.

The Life in the UK test would remain.

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The announced framework retains exemptions including for children, people aged 65 or over and individuals unable to satisfy the requirement because of a physical or mental condition.

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Who could keep a five-year settlement route in health, education and care?

The Government distinguishes between permanent five-year pathways for specified public-service occupations and transitional protection for certain existing workers.

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This distinction may be important for employees working in the same healthcare or education organisation but in different roles or who entered the UK at different times.

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Doctors, nurses and teachers

Eligible doctors, nurses and teachers could continue to qualify after five years where they work in specified graduate-level or higher public-sector occupations on national pay scales.

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The May 2025 cut-off applying to some transitional groups would not apply to this permanent pathway.

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Nursing auxiliaries and teaching assistants

Roles such as nursing auxiliaries and teaching assistants may also receive protection where they are below graduate level but paid under national pay scales.

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Workers in eligible roles who came to the UK before publication of the May 2025 Immigration White Paper could retain a five-year settlement pathway where they meet the relevant visa requirements.

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Later arrivals would generally move to the ten-year framework unless they qualify for a shorter pathway on another basis.

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Care workers

Care workers who entered or switched into the care route before the May 2025 Immigration White Paper could retain five-year settlement where they satisfy the £25,000 annual salary requirement and the applicable employment, sponsorship and settlement conditions.

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Workers within this group who do not meet the relevant requirements could potentially apply for a further five-year Health and Care visa for genuine employment in the sector.

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Care workers who entered the route after the White Paper would generally fall within the ten-year framework.

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Would time on a Student, Graduate or GBM visa still count?

The Government intends to close the separate ten-year Long Residence route.

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Currently, Long Residence can allow applicants to combine lawful residence accumulated under different immigration routes, including periods spent studying in the UK.

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Under the announced Earned Settlement framework, only time spent on specified qualifying routes would count towards settlement.

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For example, someone who spent four years as a Student and two years under the Graduate route before switching to Skilled Worker can currently potentially count those six years towards Long Residence, subject to the applicable rules.

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Under the announced framework, that period would not count towards Earned Settlement.

A similar consideration may arise for employees who move from a Global Business Mobility route to Skilled Worker.

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The final implementing rules will therefore be particularly important for people approaching ten years of lawful UK residence.

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What would change for partners and children?

Under the announced framework, eligible couples could combine earnings to satisfy a minimum household contribution of £25,142, including where one partner earns the full amount.

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This household provision applies to the minimum contribution requirement. Accelerated settlement pathways for higher earners would rely on the individual applicant’s earnings.

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A dependant partner who arrived with the main applicant could potentially settle at the same time, provided they satisfy the relevant requirements.

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A partner who joined the main applicant later would need to complete the required qualifying period in their own right.

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Children under 18 could generally settle with their parents.

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Young adults aged 18 to 24 who retain child-dependant status could also settle with their family without satisfying an individual earnings test.

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From age 25, the Government generally expects applicants to qualify independently.

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What does Earned Settlement mean for existing visa holders?

There is no general exemption for people who entered the UK expecting to qualify for ILR after five years.

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However, people who already hold indefinite leave to remain would retain their settled status.

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The EU Settlement Scheme also remains separate. Individuals holding pre-settled status would continue to qualify for settled status under the rules applicable to that scheme.

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For sponsors, an important issue concerns Skilled Workers in roles below graduate level who benefit from the pre-April 2024 salary arrangements.

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The Government intends to extend those transitional arrangements from 2030 to 2035 for the affected cohort, allowing workers to continue extending their visas on their existing terms while completing a potentially longer qualifying period.

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Employers reviewing employees who expected to qualify for settlement during 2027 should therefore distinguish between:

• the employee’s expected ILR eligibility date; and
• the expiry date of their current sponsored visa.

A further sponsored extension may become necessary.

How would longer settlement timelines affect sponsors?

For employers, moving the standard settlement period to ten years could significantly affect the cost and administration of retaining sponsored workers.

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Two Skilled Workers recruited on the same date and earning the same salary today could ultimately qualify for settlement at different times.

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For example, an employee who earned at least £50,271 in three of the five years before applying could qualify through the five-year earnings pathway.

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A colleague who only recently received a promotion taking them above that threshold may need to remain sponsored for longer.

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HR and Global Mobility teams should therefore consider reviewing:

• employees approaching their expected five-year settlement point;
• historic earnings as well as current salary;
• visa expiry dates;
• likely requirements for further visa extensions;
• availability of Certificates of Sponsorship;
• Immigration Skills Charge exposure where applicable; and
• additional costs for employees and their dependant family members.

Employers holding a UK Sponsor Licence should also consider how longer sponsorship periods may affect future licence management, workforce budgeting and retention strategies.

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Retention may become the most immediate employer challenge

For many sponsors, employee retention may be one of the most immediate consequences.

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An employee who expected to become eligible for settlement next year may instead face another immigration application for themselves and potentially their family.

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Whether the employer intends to cover some or all of those additional immigration costs could become an important factor in an employee’s decision to remain with the organisation.

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Businesses may therefore wish to prioritise conversations with employees approaching their five-year anniversary.

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Employers should explain that individual settlement dates remain subject to the final Immigration Rules and clearly communicate what financial or immigration support the organisation intends to provide before employees make longer-term decisions.

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How Hudson McKenzie can assist

Hudson McKenzie advises UK employers and sponsored workers on immigration strategy, sponsor compliance and settlement planning.

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Businesses sponsoring workers in the UK should review which employees may be affected by the Earned Settlement reforms and consider how longer qualifying periods could affect visa extensions, sponsorship costs and employee retention.

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Our UK Immigration team can assist with reviewing employee populations, assessing potential settlement timelines and planning upcoming sponsored extensions.

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For advice on how the Earned Settlement reforms may affect your employees or organisation, contact Hudson McKenzie.

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‍Disclaimer: The Government has announced its Earned Settlement policy, but the existing Immigration Rules continue to apply until implementing changes take effect. The final requirements, commencement dates and transitional arrangements will depend on the Immigration Rules and further Home Office guidance. This article is for general information only and does not constitute legal advice.

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