Earned settlement consultation closes: where we stand
The government’s consultation on earned settlement closed on 12 February 2026, marking a significant milestone in what may prove to be one of the most substantial reforms to UK immigration law in recent years.
The earned settlement proposals represent a fundamental shift from the current time-served model to a system where settlement must be actively earned through demonstrable contribution and integration. The baseline qualifying period for indefinite leave to remain would double from five to ten years for most migrants, with those in Skilled Worker roles below RQF Level 6 facing a default period of 15 years. However, the proposals also include mechanisms to reduce these periods based on high earnings (over £125,140 for three years could reduce the period by seven years), public service, or community contributions such as volunteering. Conversely, the qualifying period could be extended significantly for immigration breaches, criminal convictions, or receipt of public funds, with some individuals potentially facing waits of up to 30 years.
What makes these proposals particularly controversial is the government’s stated intention to apply the changes retrospectively to existing visa holders. This means individuals already partway through their five-year journey to settlement could find themselves subject to the new, longer qualifying periods when the rules come into force, which is expected to start in phases from April 2026.
The consultation sought views on whether transitional arrangements should apply, but Minister for Migration and Citizenship Mike Tapp confirmed during a Westminster Hall debate on 2 February that while aspects such as retrospectivity and transitional arrangements remain under review, the government intends to proceed with the earned settlement model in principle. However, it has been made clear that the proposals will not affect those who already hold ILR, those with settled or pre-settled status under the EU Settlement Scheme, and those with status under the Windrush scheme.
Given the significance of these changes, the Home Affairs Select Committee also conducted its own inquiry examining the broader implications of these reforms and the complex and wide-ranging impact of changing ILR rules, and gathered evidence from stakeholders across the immigration sector. This closed on 2 December 2025.
For employers and individuals currently navigating the UK immigration system, these developments create considerable uncertainty. Businesses should be reviewing their current workforce to identify those who might become eligible for settlement before April 2026 and those eligible for ILR should be considering whether to apply sooner rather than later. The proposed changes could have significant implications for long-term workforce planning, with extended visa cycles potentially doubling or tripling sponsorship costs and making the UK less competitive for international talent.
The mandatory requirements under the new system would include no NHS or government debt, passing the Life in the UK test, proving English at B2 level (up from the current B1), and a completely new requirement that all applicants (with limited exceptions) must demonstrate earnings of at least £12,570 annually for three to five years before applying. These requirements alone may prove challenging for many current visa holders, particularly those who are unable to work eg those with caring responsibilities.
The immigration team at Penningtons Manches Cooper has been actively involved in feeding back on these proposals and ongoing policy engagements. With the consultation now closed, we await the government’s response and the detailed Statement of Changes expected in March.
In the meantime, if you have any questions or wish to discuss the potential impact of the proposals, please liaise with your usual contact in the immigration team or email us at immigration.enquiries@penningtonslaw.com.