The UK Government is consulting on significant reforms to the rules relating to permanent residence – also known as settlement or Indefinite Leave to Remain (ILR) – in the UK.  Branded as “earned settlement”, the proposed new model would replace the current residence‑based pathway to ILR.

Key takeaways

• New “earned settlement” model proposed for ILR, replacing the 5-year route.
• Baseline qualifying period to be extended 10 years, which can increase or decrease depending on the applicant’s contribution, integration, and suitability.
• Mandatory requirements include good character, upper intermediate-level English, and a minimum level of income.
• Dependent family members aged 18 and over must qualify in their own right.
• New model to apply retrospectively to anyone in the UK who does not yet have ILR.
• High-income or special visa holders may qualify faster (in as little as 3 years).
• For now, these are proposals only: the consultation closes on 12 Feb 2026; apply early to use current rules.

Introduction

The UK Government is consulting on significant reforms to the rules relating to permanent residence – also known as settlement or Indefinite Leave to Remain (ILR) – in the UK.  Branded as “earned settlement”, the proposed new model would replace the current residence‑based pathway to ILR.

If the new rules are enacted, they would represent the most substantial redesign of the ILR rules in decades, fundamentally altering how migrants progress to settlement by imposing mandatory suitability, integration and contribution requirements, alongside a new minimum period of UK residence.

The consultation, published on 20 November 2025, remains open until 12 February 2026.  It is worth emphasising that the consultation document, which is summarised in this briefing, is provisional only.  Numerous areas require further development and significant clarification.  However, the Government’s direction of travel is clear, and it is anticipated that the proposed changes will be introduced broadly as set out in the consultation, perhaps as early as April 2026.

In time, the Government is also expected to modify the rules around eligibility for British citizenship, although no further details have been published at this stage.  However, for the majority of people affected by these proposed changes, the route to settlement is likely to be more onerous than is currently the case.  Where possible, applications should be made before the new rules are implemented, in order to benefit from the existing (more generous) framework.

Core structure of the Earned Settlement model

The proposed model operates by introducing four key themes that determine a person’s eligibility for settlement.  These are suitability (good character), integration, contribution, and residence.

Under the new system, the baseline qualifying period for ILR will no longer be five years but will be doubled to 10 years.  That will be the starting point: certain characteristics or attributes can then decrease the qualifying period, or potentially extend it.  Moreover, all applicants will be required to meet expanded minimum requirements in order to be eligible.  These attributes and minimum requirements are based on the four key themes listed above.

Two important points should be highlighted at this stage.  Firstly, the intention is that the new rules will apply to all ILR applicants, meaning that dependent family members aged 18 or over will need to qualify in their own right.  Secondly, it is proposed that the new model will apply retrospectively to individuals who are already in the UK but who have not yet obtained ILR by the time the rules come into effect.  These points are discussed in more detail below, but they represent significant developments that will have a material impact on individuals seeking to apply for ILR in the future.

Minimum Mandatory Requirements

The consultation document sets out new minimum standards that every applicant must meet to qualify for ILR, regardless of their route to settlement.  These are as follows:

(i) Suitability (Character)

Applicants must meet stringent “good character” requirements to be able to qualify for ILR.  The consultation indicates that any criminal conviction – including minor or historic matters – may constitute an absolute bar to settlement.  This represents a significant shift from the current rules, where suitability requirements are more flexible.

Applicants must also have no outstanding litigation, NHS, tax or other government debt.  As with large parts of the consultation, ambiguity remains about what is meant be “government debt”, and further clarification is needed.

(ii) Integration

Under the proposals, all applicants must:

• Demonstrate English language proficiency at CEFR level B2 (upper intermediate), an increase from the current B1 level (lower intermediate) requirement; and
• Have passed the Life in the UK Test.

The Life in the UK Test is not generally regarded as too demanding, but the requirement for all applicants – including dependent family members – to speak English to an upper intermediate level is likely to be challenging for some.

(iii) Contribution

One of the more eye-raising proposals is that applicants will be required to demonstrate sustained economic contribution to the UK through taxable earnings above £12,570 for a period of three to five years.  The consultation refers to the possibility of meeting this requirement through an “alternative amount of income”, but is silent on what this actually means.

Again, further clarity is required on the contribution requirement.  For example, it is unclear how this rule would apply to students who have not yet entered the workforce, or to individuals providing care to family members who are therefore unable to work.  More detailed information from the Government is awaited after the end of the consultation.

Baseline Qualifying Period for Settlement

As noted above, the consultation proposes that the new baseline residence period for ILR will be doubled from five years to ten years.  However, that period may then be adjusted upwards or downwards, depending on the application of specified attributes to the individual applying for ILR.

Those attributes are set out in two tables within the consultation document: Table 2, which lists attributes that reduce the qualifying period, and Table 3, which lists attributes that increase it.  Importantly, only the single most significant increase and the single most significant reduction may be applied in each case, and any increase in the baseline period will take precedence over any reduction.

In short, therefore, a person’s qualifying period for ILR will be the baseline 10 year period, plus the longest applicable increase from Table 3, minus the longest applicable reduction from Table 2.

(i) Table 2 – Reductions to the Baseline Qualifying Period

The attributes that can reduce the baseline period are as follows.  Note that the attributes cannot be accumulated: the single greatest reduction applies.

As highlighted in the table, certain aspects are not subject to the consultation, meaning that the Government intends those changes to be fixed.  For example, where an applicant’s visa is based on them being the partner, child or parent of a British citizen, their baseline period will be reduced to 5 years.

Interestingly, the same reduction does not apply to the partner/child/parent of an Irish citizen or of an individual with settled status or another form or settlement.  In those circumstances, the baseline 10 year qualifying period will apply.

(ii) Table 3 – Increases to the Baseline Qualifying Period

The attributes that can increase the baseline period are as follows.  Again, the attributes will not be accumulated: only the single greatest increase will apply.

There are certain rare scenarios where individuals who entered the UK as a visitor were allowed to switch to a different immigration category from inside the UK – for example during the Covid period.  It is expected that allowances will be made for this when the earned settlement rules come into force, but again the consultation document does not deal with those scenarios explicitly.

Separately, and although it is not expressly mentioned in Table 3, the consultation proposes that the baseline residence period for workers who have been sponsored in roles below RQF Level 6 (that is, below bachelor’s degree level) will be increased to 15 years.  This will potentially affect thousands of workers, in particular since the qualifying threshold for Skilled Worker visa applications was reduced to RQF level 3 (roughly A-level standard) in December 2020, before reverting to RQF level 6 in July 2025.

That baseline period would, of course, be subject to any reductions from Table 2, and again this is a proposal only and is not set in stone.  However, if implemented, the impact on employers and employees alike will be significant, as discussed below.

Relevance for Dependants / Family Members

A further significant feature of the proposals is that the earned settlement model is intended to apply to all applicants, including dependent family members.  This means that partners and children who have reached the age of 18 must qualify for ILR in their own right (including by meeting the mandatory requirements summarised above) and might be subject to a different qualifying period than the main visa holder.

This represents a substantial departure from the current framework, under which dependants typically qualify at the same time as the main applicant, unless they fail English language or absence requirements.

Significant uncertainty still remains with regard to dependants.  The consultation recognises that the proposed rules are incomplete, particularly in relation to young adults who will be unable to meet many of the mandatory criteria.  Accordingly, the treatment of dependants remains a key area of ambiguity and is likely to be subject to further development and refinement.

Retrospective Application

One clear aspect of the consultation is that the Government’s intends these rules to apply to all applicants for ILR, irrespective of when they first entered the UK.  This means that, for example, where someone entered the UK four years ago with a legitimate expectation of a five-year path to settlement, the new rules will apply and their qualifying period could increase substantially.

This is a perplexing development and it is difficult to overlook the impact this will have on applicants and their families.  The additional costs of one – or potentially several – extra visa applications could easily run into the many tens of thousands of pounds.  Individuals whose ability to remain in the UK depends on ongoing employment or family relationships may be subject to immigration controls for much longer than will originally have been the case.  Employers hiring non-UK workers will also see substantially increased costs, again where they had planned – and budgeted – around a shorter timeframe.  This could lead to employment terminations for sponsored workers, with dire consequences for the workers and their dependents.  Many families simply might not be aware of the new requirements until they submit a settlement application, at which point they could be told that they no longer qualify.

The Government has expressed a desire to reduce net migration.  This is happening already: net migration peaked at around 945,000 in 2023, but was estimated to be as low as 200,000 in 2025.  This decrease was largely as a result of changes introduced by the outgoing Conservative government, although continued reductions arose from further changes made by the current administration.  Still, this represents a reduction of nearly 80% in two years, with further decreases expected.  Given this, it is hard to fathom why the Government intends to apply these stringent changes retrospectively to individuals and families who, to date, have had a legitimate expectation of securing ILR under the existing rules.

Conclusion

The earned settlement proposals represent a decisive shift from the current regime.  The introduction of strict mandatory requirements, a substantially longer baseline qualifying period, and the detailed adjustment mechanisms in Tables 2 and 3, create a far more complex and conditional pathway to ILR.

While the direction of policy is clear, substantial areas require further clarification.  These include the treatment of dependants, the criteria for community contribution, and the definition of “alternative income” for the minimum income requirement.  There are some winners under the proposals, for example Global Talent and Innovator Founder visa holders, or anyone with taxable income of at least £125,140, whose qualifying period for ILR could fall to just three years.  However, the intention for the changes to apply retrospectively to anyone who has not yet secured ILR represents a significant development that will have a material adverse effect on thousands of people.

It is worth highlighting again that this new model remains a proposal only and is subject to the ongoing consultation, which ends on 12 February 2026.  If possible, individuals who can apply before the new rules come into effect – which could be as early as April 2026 – should consider doing so now while the current regime still applies.  For those who will need to apply under the new rules, early preparation (for example through income restructuring or proactive preparation for the English language requirement) is likely to be prudent.

Still, the new rules represent the biggest shake-up of the UK immigration rules in years.  Individuals, families and businesses would be well-advised to follow the developments closely to ensure that they do not get caught out.

Want to know more? Contact Charlie Fowler today.