Home Office Update – Earned Settlement

Overview

Some long-awaited detail with respect to earned settlement and extended qualification periods is now here. Last week, the UK government launched a consultation proposing a move from automatic to earned settlement for migrants. Currently, migrants on qualifying visa routes can apply for settlement or, Indefinite Leave to Remain (ILR), after spending three to five years’ continuous residence in the UK. The proposed framework would extend the baseline qualifying period to 10 years, which could be reduced, or extended further, depending on the migrant’s contribution, integration, residence and good character. For the first time, the principles of earned settlement may also apply to dependant partners, as well as main applicants.

The changes represent one of the most significant reforms to the immigration and settlement framework in more than a decade, with major implications for skilled workers, their dependants and employers sponsoring migrant talent. It is also important to note that, given the record levels of migration during 2021-2024, the government intends for these changes to be retrospective and, depending on the outcome of the consultation, implemented in part as early as April 2026.

What are the key proposals?

Extending qualifying periods

• The standard baseline qualifying period for settlement will increase from five to 10 years but may be extended, or reduced, depending on the migrant’s individual contribution.
• Migrants in roles below RQF Level 6 (sub-degree-level qualifications), such as senior care and care workers, may face a 15-year qualifying period.
• Settlement may be delayed where the applicant claims public funds (five-year penalty for less than 12 months; 10-year penalty if more than 12 months), entered illegally or overstayed (penalties of up to 20 years may apply) or originally entered on a visit visa or breached conditions of stay.

• High earners: Three years’ income above £50,270 = five-year reduction; above £125,140 = seven-year reduction. For example, someone earning above £125,140 will be able to apply for settlement after three continuous years’ residence in the UK.
• Public service roles: Migrants working within the NHS, teaching etc. = five-year reduction.
• Community volunteering = three- to five-year reduction.
• Advanced English proficiency (C1) = one-year reduction.
• Family members of British citizens = five-year reduction.
• Permission in British National Overseas route = five-year reduction.
• Permission as a Global Talent/Innovator Founder = seven-year reduction.

Applicants can benefit from one of the contribution-based reductions only in one single application i.e. it is not possible to combine any of the above to receive a further reduction.

Mandatory requirements for all applicants

In addition to the extended qualification periods, all applicants will need to meet the following conditions to qualify for settlement:

• A clean criminal recordand full compliance with immigration law. It is the government’s intention that applicants should not be able to settle with a criminal record and revised thresholds will be set out in due course.
• Proven English language proficiencyof B2 level or above, under the Common European Framework of Reference for Languages.
• Aminimum taxable income of £12,570 for three to five years before application. This is intended to apply to all applicants, including dependant partners, but not children.
• No outstanding government or public service debts (tax, NHS, etc.).

Dependants and children

Under the current system, most accompanying dependants on work-related routes qualify for settlement after they have spent the requisite period of residence in the UK and the main applicant has obtained settlement already or is applying for it. Under the new proposals, which are subject to consultation, dependants will no longer automatically qualify with the main applicant. Each adult dependant must meet the earned settlement criteria independently. However, children under 18 at the time of their parents’ settlement application can still settle at the same time. Those turning 18 would need to transition to independent routes.

Lower-skilled occupations

Following the Brexit transition period and prior to the closure of the Health and Care visa route in June 2025, there has been a record number of visa applications for professions banded under RQF Level 6 (degree-level role). Whilst some transitional arrangements are in place for migrants already present in the UK working in an RQF level 3 to 5 role, these routes have effectively been closed to new applicants in most circumstances, except when appearing on the Temporary Shortage List (TSL).

Whilst migrants applying under the TSL and those continuing to extend their existing visa can continue to do so whilst permitted, the new settlement provisions will extend the qualifying period for those with earnings below the RQF Level 6 thresholds to 15 years. Furthermore, migrants who successfully obtain settlement may be subject to a potential introduction of “No Recourse to Public Funds (NRPF)” conditions post-settlement.

Application of the rules and transitional arrangements

It is expected that the changes may apply to all migrants currently in the UK who have not yet been granted ILR. However, existing ILR holders, those on the EU Settlement Scheme and Windrush Scheme, will be protected and subject to existing conditions. Furthermore, more vulnerable groups (e.g. victims of domestic abuse, bereaved partners, those with medical or compassionate grounds) will retain current fast-track provisions, including HM Armed Forces and their families.

The current consultation will run until 12 February 2026. Stakeholders, including employers, sector bodies and immigration advisers, are encouraged to respond via the official Home Office portal.

Recommendations for employers

This is understandably a deeply unsettling time for many of your employees in the UK on a work-related visa. Employers should prepare for:

• Employee engagement: You should expect to receive an increased number of enquiries from employees within your organisation who may feel alarmed or distressed by the current consultation. Employers may wish to consider a communication outlining the key proposals and that the current framework is still subject to consultation. It is therefore unwise to speculate as to what the final proposals will be, but positive employee engagement on this topic will be beneficial.
• File applications as soon as possible: Employees may wish to apply as soon as they become eligible to avoid any adverse impacts that may be felt once the framework is implemented.
• Sponsorship timelines: Employers sponsoring work visas should anticipate a longer retention period and requirement to sponsor, along with the visa fees that come with it. It would be a good time to start thinking about your current sponsorship policy and whether this may be fit for the future.
• Audit visa expiry: You may wish to review your current sponsored cohort and calculate the additional time that may be required to reach settlement, depending on the individual’s current and projected pay. This may feed into your future budgeting for extended visa costs.

• Dependants’ eligibility: Joint family settlement may no longer apply automatically, meaning dependants may remain in the sponsorship system longer, beyond the application of the main applicant. Consider what support you currently offer to dependants, whether you are willing to expand its scope (i.e. English language training) and for how long you are prepared to provide it.
• Training: Consider training and progression initiatives for employees within roles below RQF Level 6, to enable them to be promoted, earn more and earn settlement sooner.
• Consultation: Consider taking part in the consultation. Your views as a business and sponsor will matter, not just for future-proofing your organisation, but also for providing comfort to your employees that you are engaging on this topic on their behalf.

Dentons’ Immigration team can support clients in drafting responses to the consultation, assessing workforce impacts and planning compliance measures ahead of implementation.

For further information, please contact Sarah Ingles Carlyle – Head of Immigration, UK and Europe.
Email: sarah.inglescarlyle@dentons.com