UK earned settlement reforms: What the new ILR rules mean for employers

Home Secretary Shabana Mahmood has announced significant changes to the government's proposed earned settlement system following consultation.

Under the revised plans, the default qualifying period for indefinite leave to remain (ILR) will increase from five to 10 years. However, some workers will be able to qualify sooner depending on their earnings, skills and contribution.

The government has also dropped its proposed 15-year settlement route for workers in occupations below RQF Level 6.

Who can qualify for ILR sooner?

Under the revised proposals:

• Three years: those earning over £125,141 and highly skilled migrants who are on routes such as the Global Talent and Innovator Founder
• Five years: those paying higher rates of tax with a salary of over £50,271 and skilled public service workers such as doctors, nurses and teachers, refugees arriving on safe and legal routes
• Ten years: This will be the new standard route for all other migrants, as well as refugees who move into work and study
• Twenty years: those who claim certain benefits while in the UK or commit a visa offence, as well as refugees who arrive on a small boat and enter work or study
• Thirty years: refugees who arrive on a small boat and do not enter work or study

Applicants will also have to meet strengthened settlement requirements relating to areas including English-language ability, criminal records, public debt and economic contribution.

For employers, this means sponsored workers could have significantly different settlement timelines depending on their salary, occupation and individual circumstances.

For employers, this means sponsored workers could have significantly different settlement timelines depending on their salary, occupation and individual circumstances. Employers may therefore need to consider these changes as part of their wider UK business immigration strategy, particularly when planning recruitment, retention and sponsorship of international workers. 

What has changed for overseas care workers?

The government has dropped plans that could have required some overseas care workers to wait 15 years for settlement.

Eligible care workers will be able to qualify for ILR after five years if they meet the relevant visa conditions and have earned at least £25,000 in the 12 months before applying.

The government estimates that around 146,000 care workers and 136,000 dependants could benefit from the five-year pathway.

Care workers who do not meet the requirements will be able to apply for a further five-year visa, giving them another opportunity to qualify for settlement.

What should employers do now?

Businesses employing international workers should review their sponsored workforce to understand how the different settlement pathways could affect individual employees.

In particular, employers should:

• Identify workers approaching settlement: Establish which pathway could apply to employees nearing five years in the UK.
• Review salary and occupation thresholds: Higher earners and certain public service workers may qualify sooner.
• Check care workers individually: Determine whether employees meet the requirements for the five-year pathway.
• Consider retention: Assess whether a longer route to ILR could influence international employees' plans to remain in the UK.
• Review future recruitment: Ensure candidates receive accurate information about the settlement pathway that could apply to them.

The government has confirmed that the Earned Settlement reforms will be reflected in new Immigration Rules, due to be published in December 2026. The changes are expected to take effect over the course of 2027, so employers should check the applicable rules and implementation date before advising workers on their settlement eligibility.

Employ international talent? Our business immigration experts can help you assess how the ILR changes affect your sponsored workforce, recruitment plans and sponsor obligations. Contact [email protected] or call +44 (0) 20 7759 5420 to speak to an expert.