The UK Government has confirmed significant changes to the UK's settlement system, introducing a new "earned settlement" model that will reshape how many migrants become eligible for Indefinite Leave to Remain (ILR), also known as ‘Settlement’.

Under the current rules, individuals on eligible visa routes can generally apply for ILR after five years of lawful residence. Under the new framework, however, the standard qualifying period will increase to 10 years, with greater emphasis being placed on an individual's contribution to the UK.

A New 10-Year Route to Settlement

For most applicants, including many already living in the UK, the qualifying period for ILR will increase from five years to ten years.

The Government has however introduced an income-based approach, allowing some applicants to qualify more quickly:

• Applicants on the 10-year route must meet an income threshold of £12,571 per year for at least five of the seven years immediately prior to submitting their application to qualify for ILR.

• Those earning £50,271 or more may be eligible for settlement after five years.

• Those earning £125,141 or more may be eligible after three years, subject to meeting all other requirements.

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These changes are likely to have a significant impact on lower-paid workers, dependants who are not economically active, and individuals whose earnings remain close to minimum sponsorship thresholds. Household income will be taken into account in certain circumstances, however, to help mitigate these risks.

Higher English Language Requirements

Applicants will be required to demonstrate English language ability at B2 CEFR level, an upper-intermediate standard that reflects the ability to communicate confidently in professional and everyday settings.

Life in the UK Test 

The Life in the UK test will remain a mandatory requirement for settlement applications, though the Home Office has committed to updating the test to ensure it is reflective of modern Britain.

Stricter Suitability Requirements

The new framework introduces a considerably tougher approach to criminality and non-compliance.

Criminal Convictions

Applicants with any criminal conviction will generally be refused settlement, regardless of how long ago the offence occurred. This includes convictions or disposals that may previously have been considered relatively minor, such as fines, cautions, conditional discharges and community orders.

The only exception applies to offences committed before the age of 18, where the Home Office may still exercise discretion.

Immigration Breaches

Applicants who have committed specified immigration breaches, such as overstaying, breaching visa conditions or using deception, may face an extended 20-year qualifying period and will not be able to benefit from any accelerated settlement routes.

Outstanding Government Debt

Under the new rules, settlement applications will be refused where an applicant has outstanding debt owed to the UK Government body, including the NHS, HMRC or the Home Office.

In addition, individuals who have accessed public funds in breach of their visa conditions may be required to spend a further five years in the UK without claiming public funds before becoming eligible for ILR.

Who Will Still Qualify After Five Years?

Certain migrant categories will retain a five-year route to settlement. These include:

• Applicants with qualifying British connections, including partners of British citizens and those on the UK Ancestry route;

• Specified high skilled health and education professionals, including doctors, nurses and teachers

• Specified lower skilled health and education professionals, including carers, nursing auxiliaries and teaching assistants, where the individual entered the relevant immigration route before 12 May 2025.

What Does This Mean for Employers?

These reforms represent one of the most significant changes to the UK's immigration system in recent years and are likely to affect recruitment, retention and workforce planning.

Employers should consider how the new rules may impact sponsored workers' long-term immigration prospects, particularly where salary progression, family circumstances or future settlement plans are key factors in retaining talent.

How CG Can Help

The full details of these reforms will continue to emerge as the new Rules are implemented. In the meantime, employers and individuals should begin assessing how these changes may affect their future plans.

If you would like advice on how the new settlement framework could impact your organisation or workforce, please contact our Immigration team: immigration@cgprofessional.co.uk