Next Steps in ILR Reforms
With the consultation now closed, the Home Office will review and analyse the consultation responses before publishing a formal government response. Any confirmed changes will then be introduced through a Statement of Changes to the Immigration Rules laid before Parliament. Commencement is likely to follow in stages, potentially from April 2026.
Ministers have indicated that some elements, including those already announced in principle, may move more quickly than others. The timing will depend on how rapidly the final policy design is settled and drafted into workable Rules.
What are the Earned Settlement ILR Reforms?
The core change is the extension of the standard qualifying period for indefinite leave to remain from five years to ten years for most visa holders, although this change was not itself under consultation.
Alongside the longer baseline period, the consultation proposed a framework under which applicants would be assessed against four pillars: character, integration, economic contribution and residence compliance. Settlement would be framed as something earned through sustained contribution rather than granted automatically after a fixed period.
The consultation also outlined:
- An increase in the English language requirement to B2 level.
- A minimum annual earnings threshold in the years preceding settlement.
- A potential 15-year default period for certain roles below RQF Level 6.
- Mechanisms to reduce the qualifying period for sustained high earnings, public service or community contribution.
- Mechanisms to extend the period for immigration breaches, criminal convictions or use of public funds.
These elements remain subject to policy design and refinement following the consultation responses.
Will ILR Changes Affect People Already in the UK?
This question has generated the strongest reaction.
The Home Secretary has confirmed that applications for indefinite leave to remain are assessed under the Immigration Rules in force at the date of application, not the date of entry. That principle has long been established in case law.
In practical terms, this means individuals who have not yet applied for settlement could be subject to the new framework once it takes effect, unless transitional protections are introduced.
The consultation included specific questions on transitional arrangements. No final position has yet been confirmed.
The government has indicated that the proposals will not affect those who already hold indefinite leave to remain, those with settled or pre-settled status under the EU Settlement Scheme, or those protected under the Windrush scheme.
Response to the Proposals
Stakeholder responses have focused on several recurring themes.
Business groups have warned that materially longer timelines could weaken the UK’s competitiveness for high-skilled talent, particularly in internationally mobile sector. There are concerns about fairness for individuals who structured their careers and financial commitments around a five-year route to settlement, with many calling for specific transitional or grandfathering protections to avoid mid-journey rule changes.
If the standard route to settlement moves from five years to ten, visa sponsorship cycles are likely to lengthen significantly. Employers may face extended exposure to visa fees and the Immigration Health Surcharge, revised workforce planning assumptions and the need to reassess retention and promotion strategies. Salary progression and compliance history may also come under greater scrutiny where contribution and conduct become central to settlement eligibility.
Questions have also been raised about how regional salary variations would interact with contribution thresholds, and whether the proposed framework risks becoming overly complex and evidentially burdensome for employers.
DMS Perspective
With the consultation now closed, we now await the final policy design and implementation specifics. The most significant legal point is expected to be transitional arrangements, which are likely to determine the scale of immediate impact.
For employers, clarity on settlement timelines is central to recruitment strategy and long-term workforce stability. Organisations with sponsored workforces should review which employees are approaching five years’ residence and consider whether they may qualify under the current framework before any new Rules take effect.
For visa holders, the proposed reforms would significantly extend the route to permanent residence and increase the level of scrutiny at settlement stage.
A longer qualifying period is going to affect core life decisions and migration planning. It alters financial forecasting, including the cumulative cost of visa extensions and application fees. It changes expectations around career progression and mobility. It also extends the period during which full compliance with immigration conditions is required, increasing exposure to risk if circumstances change.
Those approaching eligibility under the current five-year framework should consider their position carefully and take advice on timing. Those at an earlier stage in their immigration journey should plan on the basis that residence may need to extend to ten years before settlement becomes available, unless accelerated provisions apply.
Need Assistance?
If you are unsure how the proposed earned settlement reforms could affect your organisation or your personal position, take advice before making any decisions.
Book a fixed-fee telephone consultation with one of our specialist immigration advisers to review your eligibility, assess timing options and plan your next steps with confidence.
