UK Government Announces Plans to Move to an Earned Settlement Model and Opens Consultation

The UK government recently published a statement outlining its intention to move to an “earned settlement” system based on a “time adjustment” model whereby the baseline residence period for settlement for most migrants will be increased to 10 years from the current five years. A consultation regarding this change has also been opened, which will close at 11:59 pm on 12 February 2026.

BACKGROUND

Currently, migrants and their dependants holding permission in a settlement-leading category, such as the Skilled Worker route, may apply for settlement (Indefinite Leave to Remain) after the required residence period for that route.

Most economic migration routes, including Skilled Worker, require five years of residence, while certain high-value routes, such as Global Talent and Innovator Founder, allow settlement after three years.

The government’s Restoring Control over the Immigration System White Paper (May 2025) set out the intention to expand the principles of the Points-Based System to settlement. This includes increasing the standard qualifying period to 10 years, with the possibility of reducing that period where applicants make demonstrable economic and societal contributions.

Further details of the policies included in the White Paper can be found in our previous LawFlashes covering the White Paper’s publication and subsequent rule changes implementing higher skills and salary thresholds, and higher English language requirements for work visa applicants.    

EARNED SETTLEMENT PROPOSAL

The UK government has proposed that the earned settlement system be based on a “time adjustment” model built on four core pillars designed to ensure that individuals make a meaningful contribution to UK society:

• Character – Failure to meet mandatory requirements relating to character and conduct (including criminal record, compliance with immigration laws and public good considerations) will result in refusal
• Integration – Applicants must pass the Life in the UK test and demonstrate English language proficiency at Level B2 under the Common European Framework of Reference for Languages or higher
• Contribution – Applicants are expected to make sustained economic contributions, including annual earnings above £12,570 ($16,479) for a minimum of three to five years (subject to consultation), with higher earnings possibly accelerating settlement
• Residence – Continuous lawful residence will continue to be recognised, though it will no longer function as the sole basis for qualification

Subject to meeting the minimum criteria, applicants will be assigned a baseline period that will be adjusted depending on the individual’s circumstances:

• 10 years for most migrants—an increase from the current five years
• 15 years for Health and Care visa holders and those employed in “medium skilled” (below RQF level 6) roles
• 20 years for refugees on the “core protection” route, with an exception for resettled refugees who entered the UK through official resettlement programmes who will be subject to a 10-year baseline

These increased baselines will not apply to individuals holding permission under the EU Settlement Scheme, family members of British Citizens, and British National (Overseas) visa holders who will continue to be eligible for settlement following a five-year residence period. Further, accelerated pathways will be retained for the Global Talent and Innovator Founder routes, allowing for settlement after three years.

It is then proposed that this baseline be adjusted based on the individual’s characteristics as listed in the below tables. Where the individual’s characteristics meet more than one characteristic in each table, only the characteristic that leads to the greatest adjustment is considered and, where at least one characteristic in each table applies, the negative and positive adjustments would be combined to calculate the overall adjustment.

FACTORS REDUCING THE BASELINE RESIDENCE PERIOD

FACTORS INCREASING THE BASELINE RESIDENCE PERIOD

DEPENDANTS

Settlement periods for dependants will be determined independently, based on their own attributes. This may result in partners qualifying earlier or later than the main applicant (for example, a dependant partner earning less than the main applicant and so not qualifying for the same reduction in their baseline residence period). Dependants remain ineligible for settlement where the main applicant is refused on mandatory grounds.

As part of its consultation, the government will consider whether dependants of Global Talent and Innovator Founder visa holders should continue to benefit from a set five-year residence period, and how to accommodate children in a system where contribution-based requirements may be inappropriate or impossible for them to meet.

IMPLEMENTATION

The government consultation will close at 11:59 pm on 12 February 2026, after which it is planned that the new system will come into force in April 2026.

The rules are expected to apply to anyone who does not already hold settlement at the date the changes take effect. The government is consulting on whether transitional arrangements should apply to those already on settlement pathways.

ACTIONS FOR EMPLOYERS

The proposed changes will have significant implications for current and future foreign national employees. Employers should consider taking the following steps:

• Engage with the consultation to ensure that their and their employees’ views are reflected in how this new policy is implemented.
• Review current employee populations to determine who might currently be eligible for settlement (or become eligible before April 2026), and bring these applications forward so that they are submitted under the current rules.
• Review and formalise internal policy on supporting settlement applications.
• Review salary strategy and consider whether salary structures need adjustment to help employees meet earnings-based acceleration criteria.
• Budget for higher long-term sponsorship and visa costs.
• Identify employees who may qualify for an accelerated pathway under the proposed rules—for example, high earners earning over £125,140 ($164,063) who could apply under a three-year route.
• Provide town hall sessions or access to legal advice to allow impacted employees to learn about these proposals and the possible impacts on them and their families.