Overhaul of the UK Legal Migration System – Settlement Criteria

The UK government has today announced further details of major proposed reforms to the legal migration system with specific reference to Settlement (Indefinite Leave to Remain) applications. This follows publication of the Immigration White Paper (Restoring Control over the Immigration System) in May 2025.

The government intends to introduce a new “Earned Settlement” model focused on contribution, integration and compliance. These changes will affect nearly all long-term visa holders and employers relying on migrant workers.

The new rules will apply to foreign nationals who have arrived in the UK under routes to settlement, including sponsored workers, since 2021.

A consultation on the planned changes will run until 12 February 2026.

1. Settlement (Indefinite Leave to Remain) – Major Changes

• Standard qualifying period for most migrants will double from 5 to 10 years.

• Faster 3-year settlement routes will be created for:

  • High earners.

  • Entrepreneurs and founders.

  • Global Talent Visa Holders.

• Longer routes:

  • Many low-paid workers (including health & social care workers) may face 15 years before settlement.

  • Individuals who have relied on benefits could wait 20 years.

  • Illegal entrants and overstayers could be required to wait up to 30 years.

• A 5-year settlement route will be created for:

  • Skilled frontline public service workers.

  • Immediate family members of UK citizens and Hong Kong (BNO) holders.

2. New “Earned Settlement” Criteria

Settlement will no longer rely primarily on time spent in the UK. Instead, applicants will need to demonstrate they meet a new set of standards across four pillars:

• • Contribution

  • Integration

  • Character

  • Residence

Applicants will be required to provide suitable evidence under each pillar to show they can meet the overall threshold.

Family migrants and Hong Kong BN(O) status holders will retain a 5-year route.

3. Access to Benefits and Housing

• Migrants may only become eligible for most benefits and social housing once they become British citizens.

• This significantly extends the period before individuals can access public funds.

4. Who Will Be Affected?

• Nearly 2 million migrants who arrived since 2021 are expected to be affected, subject to consultation on transitional arrangements for complex cases.

• Individuals who already in the UK as BN(O) status holders, those who hold ILR and EU nationals who benefit from Brexit agreement rights will not be impacted.

In light of these changes, HR teams should review their current sponsored population, identify employees who may be affected by extended settlement timelines, and prepare to support them with clear guidance. Workforce planning, retention strategies and communication will become increasingly important as further detail is released.

Please note that these proposals are subject to consultation and will require formal changes to the UK Immigration Rules before they can come into force.

We will continue to monitor developments and will provide updates as the new model progresses. If you have any questions or would like to discuss potential impacts on your organisation, please get in touch.

Author