The Home Secretary has confirmed that the Government intends to tighten the rules for Indefinite Leave to Remain (ILR).
The key changes under consideration include tougher English language standards, a requirement for a clean criminal record and a greater emphasis on economic contribution such as proof of employment and payment of National Insurance.
Ministers are also consulting on whether the current five-year qualifying period should be doubled to ten years. Although no immediate timetable has been confirmed, what seems clear is the Government wants the route to settlement to become longer and more demanding.
What is ILR?
Indefinite Leave to Remain (ILR) is a form of settled status that allows migrants to live and work in the UK without time restrictions. Once granted, ILR removes the need for regular visa extensions and the costs that come with them, such as repeat Home Office fees and the immigration health surcharge.
For sponsored workers, such as those on the Skilled Worker visa route, ILR also ends the requirement for employer sponsorship. Migrants with ILR can change employers freely without needing to meet the salary thresholds or other visa conditions that apply under sponsored routes. For many long-term residents, ILR is also the key stepping stone towards British citizenship.
Current ILR rules
At present, most skilled workers and other long-term foreign nationals can apply for ILR after five years’ continuous lawful residence. They are required to demonstrate knowledge of life in the UK, pass a B1 English test and show they have not breached immigration rules.
Once ILR is granted, the individual gains the stability of permanent residence. They are no longer tied to the conditions of a temporary visa, freeing them from renewal costs and providing a foundation for an application for British citizenship after a further qualifying period.
Proposed changes to ILR
The Home Secretary has confirmed that the Government intends to make the ILR process longer and more demanding. The headline proposal is to double the qualifying period from five to ten years for all applicants. Alongside this, a number of new requirements are being considered. These include:
- Proof of ongoing employment
- Evidence of a certain level of National Insurance contributions
- A bar on claiming benefits during the qualifying period
- Higher English language requirements, potentially at level B2
- A requirement for a completely clean criminal record
- Evidence of “giving back” to the community, such as volunteering or local engagement
Ministers have also suggested that some applicants may be able to qualify in fewer than ten years if they meet higher thresholds, such as high earnings or clear evidence of integration.
The Government has said that a consultation will launch in late 2025 to consider these proposals in detail. No implementation date has been confirmed, but the intention is clear: settlement will become harder to obtain, with tougher tests and longer timelines.
Impact on ILR applicants
For migrants, the immediate impact is uncertainty. Many who expected to apply for ILR after five years may now face an additional five years of sponsorship before being able to settle. This means higher costs, greater exposure to changing visa rules and, for some, a reassessment of whether the UK remains a viable long-term destination.
The prospect of stricter English requirements and community or economic contribution tests raises the risk of otherwise compliant migrants falling short despite years of lawful residence and work. While ministers have said changes would not apply retrospectively to those who already hold ILR, it is not yet clear whether those currently part-way through the five-year route will be protected.
Impact on employers
For employers, the proposals create new financial and workforce planning risks. If settlement is pushed back to ten years, sponsors will need to extend visa support for longer. This means additional visa fees, ongoing renewals and continued payment of the Immigration Skills Charge, currently £1,000 per worker per year for medium and large organisations.
Many employers contribute towards visa and IHS costs for their staff. Doubling the period of sponsorship could therefore have a significant financial impact on budgets. HR teams will also need to monitor visa anniversaries more closely, provide English language support if higher levels are introduced and plan for higher attrition if staff lose confidence in their long-term settlement prospects.
A further consideration is communication. Migrant employees approaching five years of residence will have questions about their eligibility and timing. Employers should be ready to provide guidance and reassurance. Under current rules, ILR applications can be submitted up to 28 days before the qualifying period is met. This remains an option for those already close to eligibility, and employers may wish to encourage staff to apply sooner rather than later.
Other visa routes
The proposals are primarily aimed at those on long-term work visas. It is not yet clear whether other categories, such as applicants under the EU Settlement Scheme, will be affected. Most EUSS holders with pre-settled status are already eligible to convert to settled status, and the Government has not indicated that this route will be restricted. However, until the consultation is published, uncertainty remains.
DM Perspective
The reforms may be designed to be politically attractive but in reality, are unlikely to do little to address the real pressures of illegal migration, which arise from border control and asylum systems rather than the ILR route.
What they will achieve is to increase the burden on those already complying with the rules. Migrants will face longer waits, higher costs and more hurdles to clear, while employers will be required to shoulder greater financial and administrative responsibilities.
The UK also risks damaging its international competitiveness. Countries such as Canada, Australia and parts of the EU continue to offer more accessible settlement pathways. If the UK doubles its ILR qualifying period, it may lose skilled talent to alternative destinations where permanent residence is faster and less costly.
For employers, the pain point is clear. ILR will no longer be a near-term milestone for much of the sponsored workforce. Workforce planning will need to assume longer sponsorship periods, higher turnover risk and an increased demand for immigration support.
The practical step now is to audit your migrant population, identify those approaching the five-year point and prepare communication strategies to manage expectations. Early planning can help retain staff and preserve engagement even if the settlement process becomes more restrictive.
The critical insight is that digital or political rebranding will not disguise the fact that ILR reform shifts responsibility from Government onto compliant migrants and employers. Those who anticipate the changes and restructure their compliance frameworks in advance will be better placed to manage the transition and maintain workforce stability.
Need assistance?
If you are concerned about these proposals and what they could mean for your sponsored workforce or your own route to settlement, speak to our advisers for guidance on your circumstances.
