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.
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 granted, ILR offers the stability of permanent residence, freeing the individual from ongoing visa renewals and providing the foundation for a future application for British citizenship.
These most recent proposals would be a significant shift away from this current position. Raising the qualifying period to ten years would double the time that workers must spend on a sponsored visa before they can settle. Imposing stricter English standards and additional economic criteria would also mean more people falling short, despite having lived and worked lawfully in the UK.
While the reforms would not apply retrospectively, they will change the expectations of those currently on a five-year track.
Impact on employers and ILR applicants
For applicants, the main impact is uncertainty. Should these proposals take effect, many who expected to apply after five years may find themselves facing a further five years of sponsored status, higher costs and greater exposure to changes in visa conditions.
The prospect of tougher language or financial requirements could prompt applicants to accelerate plans, or to reconsider the UK as a long-term destination.
For employers, retention risks are the immediate concern. The five-year ILR milestone has always been a key selling point when recruiting international talent. If the bar is raised, employers may find that the UK loses some of its competitive edge compared with other destinations.
HR teams will also face a heavier compliance burden, needing to monitor visa anniversaries, support staff with English language training and model the financial implications of longer sponsorship periods. Employers will also need to take care to avoid decisions that could be perceived as discriminatory against staff whose settlement prospects have become uncertain.
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.
Lawfully resident skilled workers are not the cause of the backlog or small-boat crossings. What the reforms will achieve is to shift more cost and risk onto employers and applicants who are already complying with the system.
For employers, the pain point is that settlement will no longer be a near-term option for much of the workforce. Workforce planning will need to assume longer periods of sponsorship, higher attrition and increased demand for immigration support.
The practical consideration now is to audit your migrant population, identify who is approaching the five-year point and prepare communications so that employees understand how their long-term options may be changing. Early planning will help to preserve engagement and retention even as the settlement landscape becomes more restrictive.
Need Assistance?
If you are concerned about these proposals and their impact on your sponsored workforce or your own route to ILR, speak to our advisers for guidance on your circumstances.
Author
Founder and Managing Director Anne Morris is a fully qualified solicitor and trusted adviser to large corporates through to SMEs, providing strategic immigration and global mobility advice to support employers with UK operations to meet their workforce needs through corporate immigration.
She is recognised by Legal 500 and Chambers as a legal expert and delivers Board-level advice on business migration and compliance risk management as well as overseeing the firm’s development of new client propositions and delivery of cost and time efficient processing of applications.
Anne is an active public speaker, immigration commentator, and immigration policy contributor and regularly hosts training sessions for employers and HR professionals.
