The UK government has proposed a major shift in how people qualify for Indefinite Leave to Remain (ILR). Instead of fixed paths of five or ten years towards settlement, the new Earned Settlement Scheme creates a longer baseline requirement that could extend residence requirements up to 30 years in some cases. This will affect most immigration categories and reshape the prospects of skilled workers and their families.
At the heart of this reform is the idea that settlement must be earned through work, contribution, language and community engagement. Under the proposed rules, dependants will no longer automatically qualify for settlement at the same time as the main applicant after five years of residence. They must now earn settlement in their own right.
In past reforms, successive UK governments generally respected the legitimate expectations of migrants. A five or ten year route was understood as a promise that, if other requirements were met, settlement would follow at the end of that period. It is not yet clear whether such expectations will be recognised under the new proposals. Skilled workers and their families face uncertainty. Many lawyers are making educated guesses about how the rules will apply, but there is no definitive answer at this stage.
High Earners and Their Dependants
For highly paid skilled workers, there is some good news. Workers with an annual salary of at least £125,140 for at least three years will qualify for settlement after three years rather than five. It is likely that this three year qualifying period will include time spent under existing rules before the new scheme begins in 2026.
Dependants of high earners face choices. If they have taxable income of at least £50,270 for three years, they may qualify for ILR after five years of residence in their own right. If a dependant does not meet this threshold, they can switch into the partner route once the main visa holder obtains ILR. This would allow settlement as a partner of a settled person after five years of residence.
There is also a lower threshold. If a dependant earns at least £12,570 for the requisite period (a figure still under consultation), they may qualify for ILR after ten years of residence, or nine years if they achieve a C1 level of English language.
Mid Earners and Dependants
Mid earners are defined as those earning between £50,270 and £125,000 a year. These workers will qualify for ILR after five years of residence, provided they have been earning at least that salary for at least three years. This 5-year period cannot be shortened by voluntary work or knowledge of English.
Dependants in this group must either qualify on their own through their own earnings or switch into the partner route when the main visa holder becomes settled. In the latter case, they will typically be eligible for settlement after ten years of residence as the partner of a settled person.
Low Earners
The current minimum salary for skilled workers sits at £41,700. Under the new framework, workers earning under £50,270 will need a longer period of sponsorship to meet the ten year residence requirement. Workers who studied in the UK and held a graduate visa may have built up a considerable period of continuous residence before the new rules. This could count towards settlement under the long residence rule. However, those who came to the UK expecting settlement after five years may now face many more years of uncertainty unless transitional provisions are introduced.
Skilled Workers in Occupations below RQF Level Six
Workers in occupations below RQF level six are likely to be the most affected. The proposals suggest that the baseline residence requirement for these roles could be extended to 15 years rather than ten. If workers in this category earn at least £50,270 a year, this baseline may be reduced by five years to ten years.
Taxable Earnings and Additional Work
The concept of taxable earnings is open to question. It is not yet clear whether taxable income will include the zero-rated personal allowance or income from property, including overseas rental. For many skilled workers concerned about meeting thresholds, supplementary or secondary employment may offer a way to increase taxable earnings and reduce the residence requirement.
Families may also reconsider their internal roles. Under current rules it is not uncommon for a sponsored worker to earn less than a dependant who has a wider choice of work. Under the new earned settlement framework, it will be crucial that the sponsored worker earns at least £50,270 a year, or else the whole family faces years of uncertainty before qualifying for ILR.
Dependent Children
Children born in the UK will continue to be eligible to register as British citizens once at least one parent becomes settled. For children born outside the UK, eligibility for ILR will depend on both parents being settled or one parent being settled while applying with the child.
If the baseline residence period for ILR is extended, there is a risk that young people who arrived as children but did not qualify before turning 18 could fall into a limbo without clear rights in either the UK or their country of origin. The current consultation does not offer clear protections for this group.
Dependants with Disabilities
The earned settlement programme currently makes no specific provisions for dependants with disabilities. The consultation invites public input on whether vulnerable groups should be excluded from parts of the scheme. It is important that disability rights organisations, affected families and other stakeholders contribute their views before the consultation closes.
Expert Insight and How We Can Help
Taylor Hampton Solicitors has extensive experience in UK immigration and visa services, offering support to individuals and businesses navigating complex policy changes. At the helm of the immigration team is Leena Chouhan, Head of UK Immigration. Leena has over 17 years post qualification experience advising on skilled worker visas, sponsorship licence applications, spousal visas, ILR and naturalisation matters for corporate and private clients. She specialises in business immigration and has deep expertise supporting employers and sponsored workers through evolving immigration rules. Leena speaks Gujarati and Hindi which allows her to connect with a wide range of clients and provide tailored guidance.
For Further Information
If you would like to understand how the proposed earned settlement rules could affect you or your employees, or if you need tailored immigration advice, please contact Leena Chouhan and the immigration team at Taylor Hampton Solicitors. They can clarify the current state of the consultation, explain transitional prospects, and help plan for the changing landscape of UK settlement law.