Labour MPs challenge 10-year ILR proposal

The UK government is now considering watering down its proposed shift to a 10-year route to settlement following a backlash from Labour MPs. The “earned settlement” proposals, first outlined in November 2025, are set to extend indefinite leave to remain (ILR) from five to 10 years for most migrants, including care workers and refugees, while introducing higher income requirements, stricter English language rules, and tighter Skilled Worker visa criteria.

Political and public pressure mounts

Prime Minister Keir Starmer has indicated that no final decision has been made, acknowledging concerns raised during the Home Office consultation. More than 100 Labour MPs have signed a private letter opposing the changes, warning they could worsen skill shortages, particularly in social care.

Labour MPs and ethnic minority representatives have also criticised the retrospective element as “un-British,” highlighting fears among migrants already in the UK. The combined political and public pressure has put the government in “listening mode,” with discussions ongoing about settlement periods, reduced time for positive contributors, and transitional support. 

Public divided over settlement changes

A recent poll found 39% of voters support extending ILR from five to 10 years, with 26% opposed. Support drops when applied retrospectively, with only 36% in favour. Even among past Labour voters, opinion is closely split. Experts note the public favours clear and fair rules, particularly for those contributing to critical sectors, while retrospective measures remain contentious.

Transitional arrangements under discussion

Government sources suggest the Home Office is exploring ways to reduce the impact on migrants already in the UK, including:

• Reduced waiting periods for existing migrants in key roles
• Sector-specific exemptions for acute skills shortages
• Phased salary-threshold increases
• Possible restoration of shortage-occupation concessions

Impact on workforce and economy

A longer ILR wait could make the UK less competitive with countries like Canada, Australia, and EU nations, where permanent residency is usually possible after five years. Critical sectors, including healthcare, construction, and tech, risk losing skilled workers if migration is discouraged.

What UK employers should do now

• Stay prepared: Revised policy guidance is expected, but tougher settlement rules for lower-paid roles may still be introduced.
• Audit sponsorships: Check Certificate of Sponsorships for employees starting after the proposed changes in case grandfathering is limited.
• Plan for surges: Expect more ILR and Skilled Worker applications under the current rules in the short term.
• Budget wisely: Prepare for higher salaries and compliance costs if stricter rules are introduced later this year.

What’s next

• The Home Office has received over 200,000 consultation responses and is still reviewing the impact on those already in the UK.
• Legal challenges are expected.
• Ministers have not confirmed exact timings, but some rule changes, including higher English standards, are already scheduled for March 2027.

The 10-year ILR plan could be tightened, delayed, or partially amended. Employers relying on international talent should stay alert, act under the current rules, and prepare for multiple scenarios.

Stay ahead of UK immigration changes and ensure your business remains compliant under current rules. We offer immigration assistance, advice and support. Contact us today at [email protected] or give us a call on +44 (0) 20 7759 5420 to speak to an expert about how we can help your business.