The UK government has launched a consultation titled ‘A Fair Pathway to Settlement,’ proposing substantial reforms to how migrants qualify for indefinite leave to remain.
This consultation is open until 12 February 2026, sets out new ‘earned settlement’ model that could alter the immigration landscape for employers and international staff alike. Understanding the proposals and their potential impact is essential for organisations that employ or sponsor international talent.
What is the Earned Settlement Consultation?
The consultation is based on the principle that permanent settlement in the UK should no longer be automatic after a set period of residence. Instead, it should be earned through a measurable contribution, integration, character and lawful residence. This approach aims to ensure that individuals demonstrate sustained commitment through work, community involvement, or other meaningful contributions before being granted permanent status. Dependants will also no longer automatically qualify for ILR alongside the main applicant.
The consultation is seeking views on options to reduce the current forecast volumes for ILR and associated impact over the coming years. The Government are consulting on a number of options to achieve this, namely:
a) increasing the baseline qualifying period for settlement to 10 years
b) increasing the qualifying period for settlement to 15 years for those in the Skilled worker route in a role below RQF level 6 (equivalent to a bachelor’s degree), and
c) implementing a No Recourse to Public Funds (NRPF) condition at Settlement.
Longer Baseline Qualifying Period
Currently, the core requirements for settlement include that the applicant must have spent a qualifying period, which is usually 5 years, with a visa on a route to settlement. There are some routes that allow immediate settlement, and some which offer a shorter qualifying period of 3 years.
The standard qualifying period for most applicants is proposed to increase from 5 to 10 years of lawful residence.
Core Pillars of Settlement
- Character – This reformed system will, as now, provide for the refusal of applications where core requirements relating to their character and conduct (for example, having a criminal conviction, non-compliance with immigration requirements and considerations pertaining to the public good). It will be mandatory to meet such requirements, and there will be no ability to trade with other considerations to determine the qualifying period. We will conduct a root and branch review of the criminality thresholds that apply across all immigration routes. Our expectation is that you should not be able to settle with a criminal record. Revised thresholds will be set out in due course.
- Integration – The reformed system will ensure that applicants demonstrate meaningful engagement with British society.
- Contribution – The reformed system will reward individuals who have made a sustained and measurable economic contribution to the UK, on the principle that any accelerated path to settlement should be earned through active participation in the economy.
- Residence – The reformed system will recognise lawful, continuous residence in the UK. Individuals will not, however, normally qualify on the basis of residence alone.
Transitional Arrangements
The government is seeking feedback on whether transitional protections should be offered to:
- Migrants already on a route to settlement
- Those close to meeting current 5-year ILR rules
Key Implications for Your Business
Increased Sponsorship Costs
If employees remain under immigration control for 10-15 years years instead of 5, employers will face years a decade or more of sponsorship fees, visa renewals. Employers may need to consider the implications for recruitment, retention and workforce stability.
The UK may become less attractive to mid-level talent.
Migrants may need to reassess long-term plans, especially if already working towards a five-year settlement goal. Certain sector roles, which are already subject to high turnover and demanding working conditions, may become less attractive if settlement becomes significantly less accessible.
Mid-level roles may be significantly harder to market internationally, as a ten- or fifteen-year pathway offers less certainty and a prolonged period of immigration control.
Longer sponsorship means longer reporting duties.
Employers will face a longer-term and more compliance-intensive relationship with sponsored workers which increases the operational burden placed on HR teams. This can likely lead to increased risk of missing renewals, more reportable events and greater exposure to Home Office compliance visits and audits over a longer timeframe.
Next Steps for Employers
The consultation is currently open and seeks views from stakeholders, including business groups and employers, on how these reforms should be implemented.
- Deadline for Responses: 11:59pm on 12 February 2026
- Expected Implementation: Changes are planned to take to take effect in 2026
Once the consultation period closes, responses will be reviewed and final policy decisions will be published. Employers should monitor the consultation, review internal HR and compliance systems, identify workers who may be affected by different future models and consider submitting evidence to the Home Office.
Summary
Migrants will need to demonstrate:
- High levels of compliance
- Economic contribution
- Strong integration
- Long-term commitment to UK society
If adopted, the earned settlement model will reshape the long-term residency landscape in the UK. The new Immigration Rules implementing earned citizenship could be introduced as early as April 2026. However, at this stage, these proposals are under consultation only and are not yet part of the Immigration Rules.