The UK immigration system is moving towards a fundamental transformation in the coming months, particularly in relation to Indefinite Leave to Remain (ILR) / settlement rules. The government is proposing a shift away from the traditional time-based automatic settlement model towards a contribution- and integration-based framework.
1. Government Earned Settlement Reform: What Is Being Proposed?
In a policy paper published on 20 November 2025, the UK government outlined a new proposed model called “Earned Settlement”, which would significantly reform the current 5-year settlement route.
Under this proposal, settlement would no longer be granted simply on the basis of lawful residence over a fixed period. Instead, individuals would be required to “earn” settlement through demonstrable contributions to UK society, assessed via a points-based or criteria-driven system.
Core objective:
Settlement would no longer be automatic — it would become a status that must be earned through contribution and integration.
2. Standard Settlement Period Likely to Increase
Under the current system, many migrants qualify for ILR after 5 years of lawful residence. Under the new proposal, this baseline may change significantly:
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10 years could become the new standard settlement period for most visa categories.
However, this 10-year period would not be fixed. Instead, it could be shortened or extended depending on factors such as:
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economic contribution
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professional profile
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level of integration into UK society
This approach reflects a move towards settlement models seen in other European immigration systems, where earned residency replaces automatic progression.
3. The “Time Adjustment” Model: How Would It Work?
The proposed time adjustment mechanism would assess applicants across four key pillars:
Character / Suitability
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Criminal convictions
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Immigration breaches
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Outstanding public debt
Negative factors would delay or prevent settlement eligibility.
Integration
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English language proficiency (B2 level or higher)
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Passing the Life in the UK Test
Contribution
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Continuous employment and tax contributions
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Voluntary or community service may also be considered
Residence / Compliance
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Continuous and lawful residence remains necessary
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However, time alone is no longer sufficient
Illustrative examples discussed in the proposal include:
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High earners (annual salary ≥ £125,140) or Global Talent visa holders may qualify in as little as 3 years
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Mid-level earners (e.g. ≥ £50,270) may qualify after around 5 years
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Lower-income workers may face pathways extending up to 10 years
4. From “Time Served” to “Settlement Earned”
Under the traditional framework, residence duration was the decisive factor. The proposed model reframes settlement eligibility as follows:
“Settlement would be earned not simply through time spent in the UK,
but through contribution, integration, and compliance.”
This reform is widely regarded as the most significant post-Brexit overhaul of the UK settlement system. If implemented, it would fundamentally replace the long-standing 5-year settlement norm with a performance- and contribution-based structure.
5. What About Current Migrants?
The government has launched a 12-week public consultation, running until 12 February 2026, during which stakeholder feedback is being collected.
At present:
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No rules have changed yet
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The existing 5-year settlement routes remain fully valid
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How the new system would apply to migrants already in the UK remains unclear
Transitional arrangements, including grace periods or hybrid models, are reportedly under consideration. This uncertainty creates planning and financial risk, particularly for Skilled Worker visa holders and others working towards settlement.
6. Concerns from Employers and the Wider Economy
Employers have raised strong concerns that extending settlement timelines to 10 years and increasing salary thresholds could:
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reduce the UK’s global competitiveness
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discourage skilled migrants from choosing the UK
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negatively impact key sectors reliant on international talent
Many businesses argue that the 5-year settlement timeline is a critical incentive for attracting and retaining skilled workers.
Conclusion: When Could This Happen & How Should Migrants Prepare?
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No changes are final — all proposals remain under consultation.
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Existing ILR rules continue to apply for now.
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However, the Earned Settlement consultation launched on 20 November 2025 could lead to legislative reform in 2026.
Given the scale of the proposed changes, migrants should avoid delaying settlement planning and seek tailored advice to navigate potential risks and opportunities under the evolving framework.
