Major changes to UK Indefinite Leave to Remain ('ILR') confirmed

The Home Office published its response to the Earned Settlement consultation, on 2 November 2026, setting out the revised policy framework.

Additional interpretation and operational details are in development and Immigration Rules changes are expected to begin to be laid from December 2026 with phased implementation anticipated during 2027.

This article provides a summary of the revised framework. For a more detailed briefing, please click here to provide your details.

Key headlines

• Retrospective impacts: with very limited transitional arrangements for narrowly defined groups only, most migrants already in the UK will be subject to the new rules.
• Standard residence period will increase to 10 years: most applicants will wait twice as long for settlement; some will benefit from shorter three-year or five-year accelerated pathways (including high earners, Highest Talent category migrants and partners of British citizens); conversely past immigration breaches or claiming public funds may engage a 20-year pathway. The proposal for workers in medium skilled roles (RQF 3-5) to be subject to a 15-year baseline has been scrapped.
• New mandatory criteria applicable to all pathways will include a minimum earnings threshold of at least £12,571 (limited exceptions)
• A criminal record will attract mandatory refusal, creating a permanent bar to settlement.
• Any outstanding government debt (including NHS debt, Home Office litigation debt or unpaid tax) must be settled before application.
• English language ability at the increased B2 level and the Life in the UK test must be met.

Pathways at a glance

How long each applicant will be required to reside in the UK before applying for settlement will be determined by the pathway their circumstances fall under. There are four main pathways (separate pathways apply to humanitarian routes), summarised below.

3-year pathway: 'exceptional economic contribution'

• Earnings of £125,141 for at least three of the last four years; or
• Highest Talent routes, including Global Talent and Innovator Founder, which is currently subject to review by the Migration Advisory Committee.

5-year pathway: 'strong contribution' to the UK

• Earnings of £50,271 for at least three of the last five years;
• Workers in an eligible public service occupation for five years; or
• British connection applicants, including:
• qualifying partner/child/parent of a British citizen
• qualifying person of UK Ancestry

10-year pathway: default pathway

• Earnings of £12,571 for at least five of the last seven years
• Applies, where the applicant does not fall within one of the shorter pathways and does not have adverse factors.

20-year pathway: longer pathway

• Earnings of £12,571 for at least five of the last seven years.
• Applies to those whose immigration non-compliance or access to public funds prevents them from qualifying for an earlier pathway.

Applicants in all pathways must meet the mandatory criteria (including the minimum earnings of £12,571) and must not have accessed public funds in the last 5 years (with the exception of the 20-year pathway).

Family members

• The proposal for dependants of main migrants to be required to qualify for Earned Settlement independently has been scrapped. This means that partners will still be able to settle at the same time as the main applicant (a partner who joins later must complete the full residence period).
• Partners must meet the new minimum earnings threshold of at least £12,571, but can do so on the basis of the couple having household earnings of £25,142.
• Children aged under 18 can settle with their parents; those aged 18–24 must demonstrate that they remain dependent and meet some of the mandatory criteria; those aged 25+ must also meet the earnings threshold for settlement or otherwise apply in another route to remain in the UK.

Winners and losers

• High earners (£125,141 or more) and Highest Talent migrants (and their dependants) get a three-year path – more advantageous than under the current rules.
• Partners of British citizens and of settled persons currently have the same route – in future they will be treated differently, with the former retaining their five-year path to settlement but the latter doubling their period to 10 years.
• The current ‘long residence’ route will close and time in temporary routes such as Student and Graduate will not count towards qualifying residence. Those nearing 10 years may have to restart their residence in an eligible route if they cannot apply before the rules change.
• Increased risk factors: past breaches (overstaying, breaching conditions, deception) may trigger a 20-year path and a minor criminal record that would previously have received discretionary consideration may now engage mandatory refusal indefinitely.

Next steps

• Employers: assess your migrant workforce against the new criteria to identify who may face a longer (or shorter) route – consider who may require further sponsorship/extensions to bridge the gap to settlement, and whether alternatives (such as pay reviews or route changes) could secure a faster or more cost-effective pathway.
• Individuals: consider whether you may be in a position to apply for settlement before the changes take effect – in particular anyone nearing 10 years’ residence that includes temporary routes should take advice before the rules change.  Individual high earners and Highest Talent migrants should consider applying for settlement earlier than originally planned, once the new rules are in force.

This article provides a summary of the revised framework. For a more detailed briefing, please click here to provide your details.

Please contact us if you have any questions about how these changes may affect you or your business.