These changes are going to have a significant impact on businesses who may need to sponsor workers for much longer than previously anticipated.
Further to Labour’s Immigration White Paper published in May 2025, this year has already seen numerous changes to UK immigration legislation, as outlined in our recent update. The Government has made clear its intention to radically reform Britain’s immigration framework with the aim of “restoring control over our borders” by making the system more selective and increasing removals of those who do not have a legal basis to remain in the UK.
On 24 November 2025, the Government announced further details of its proposal to extend the qualifying period before migrants can apply for Indefinite Leave to Remain (ILR), along with the concept of ‘earned settlement’, in what has been coined the “biggest overhaul of the legal migration model in 50 years”.
What is the ‘earned settlement’ model and how long will migrants have to wait before applying for settled status?
At present, most individuals can apply for ILR, also known as settlement, after 5 years of continuous residence in the UK. However, the Government has proposed to increase the baseline qualifying period for many migrants from 5 to 10 years. Some people may be able to qualify sooner and for others the wait will be much longer.
Furthermore, Home Secretary Shabana Mahmood recently expressed the need for migrants to ‘earn’ their way to settlement, unveiling a new ‘contribution-based’ model. The extended settlement routes will vary depending on each person’s individual circumstances, taking into accounts factors such as:
- Job skill level
- Entry into the UK (via a resettlement programme or otherwise)
- Volunteering in the community
- English language ability
- Financial income
- Reliance on benefits
- Connections to the UK
- Criminality and other disqualifying factors
- Refugee status
The Government has advised that for those in ‘high-skilled jobs’ earning over £50,270 or working in public sector healthcare and education roles, the route to qualification will continue to be 5 years. This includes doctors and nurses working in the NHS. For those in ‘low-skilled’ and ‘medium-skilled’ jobs, the qualifying period could be up to 15 years, although this could be reduced if the individual volunteers in the community or has strong English language skills.
Refugees who arrive in the UK via a resettlement programme will be able to apply for ILR much sooner than those who overstay their visa or enter via irregular routes. However, those who receive benefits will face at least a 20-year wait for settlement, with some who are classed as ‘overstayers’ or who arrived via irregular routes facing a 30-year wait. This reform is supposed to encourage safe and legal routes for those fleeing persecution. Nevertheless, refugee protection will be reduced from an initial 5-year period of leave to just 30 months, which will be reviewed periodically and only renewed if protection is still needed. Otherwise, individuals may become liable for removal from the UK.
What do these changes mean in practical terms for businesses and individuals?
These changes are going to have a significant impact on businesses who may need to sponsor workers for much longer than previously anticipated. The cost implications are significant as organisations may not have budgeted for these changes. Following the swingeing 32% increase of the Immigration Skills Charge on 16 December 2025, the Certificate of Sponsorship (‘CoS’) and Immigration Skills Charge cost alone for ten years of sponsorship for a medium to large organisation will be £13,200. Nevertheless, businesses need to handle these cases sensitively and appropriately to avoid claims of indirect discrimination. It is unlawful to refuse to employ or continue to employ someone on the basis of their nationality.
Furthermore, according to the announcements, the changes will apply to migrants already on the 5-year route to settlement, subject to consultation on transitional arrangements for borderline cases. The concept of a much longer wait to obtain settlement will have an enormous impact on those who have chosen to build their lives in the UK. It is estimated that almost 2 million migrants arrived in the UK from 2021, many of whom are on health and social care visas in ‘low-skilled’ care roles and would face a minimum 15-year wait to settlement.
However, this proposal will likely be subject to legal challenge, as happened in 2006 when the Government introduced changes to the rules for the Highly Skilled Migrant Programme (HSMP), to be applied retrospectively. In the case of HSMP Forum Ltd, R (on the application of) v Secretary of State for the Home Department [2008] EWHC 664 (Admin) (08 April 2008), the High Court ruled that the retrospective application was unfair and unlawful. The decision ensured that affected individuals could continue to apply for ILR under the original terms of their entry, on the basis of ‘legitimate expectation’.
When will the changes take effect?
The proposals are all subject to public consultations that are running until 12 February 2026, after which time we hope to see greater clarification around the practicalities of any changes. For now, businesses are advised to review their sponsorship pipeline and ensure sponsorship budgets are sufficient for the coming years. Businesses who will be affected by the proposed changes may also wish to contribute to the consultation survey
We anticipate many months of uncertainty, which will undoubtably leave individuals feeling concerned about their future in the UK. For those who have already reached the qualifying 5-year period, we would advise applying for ILR as early as possible and seeking legal advice if needed.
Our expert employment and immigration lawyers can assist with training and advice on the immigration rules and offer support through the upcoming changes. Whether you are a business or individual, please get in touch and we will be happy to help.
