Westminster Policy News & Legislative Analysis

Home Office opens consultation on 10-year ILR earned settlement

The Home Office has opened a formal consultation on an “earned settlement” model for permanent residence, following the Home Secretary’s oral statement to the House of Commons on 20 November 2025. The consultation runs until 11:59pm on 12 February 2026 and invites evidence from individuals and organisations on how the framework should be designed and implemented.

Under the proposals, the default qualifying period for settlement would move from five to ten years for most routes, with a new time‑adjustment approach applied across four pillars: character, integration, contribution and residence. Refugees on the new core protection support would face a starting point of 20 years, while those resettled via official programmes would generally start at 10 years.

Minimum mandatory standards would apply to all applicants, including meeting English language at B2 under the Common European Framework of Reference, passing the Life in the UK test, satisfying suitability rules such as no criminal conviction, and having no current litigation, NHS, tax or other government debt. Applicants would also need annual earnings above £12,570 for a minimum of three to five years, with the precise duration subject to consultation.

Time reductions would be available for specific contributions. Applicants with C1‑level English could reduce the qualifying period by one year. Earning at least £50,270 for three consecutive years would reduce it by five years, and £125,140 for three years by seven years. Five‑year reductions are proposed for specified public service roles and for partners, parents or children of British citizens, with a three‑to‑five‑year reduction for sustained community volunteering. Global Talent and Innovator Founder visa holders with three years’ continuous residence could receive a seven‑year reduction.

Extensions would apply where conduct or route history indicates lower contribution or non‑compliance. Using public funds for less than 12 months could add five years to the qualifying period, and more than 12 months could add ten years. Those who arrived illegally, entered as visitors, or overstayed by six months or more could face increases of up to 20 years.

The government is also consulting on whether the law should be changed to allow a “no recourse to public funds” condition to be attached to settlement, shifting default access to specified benefits to the point of citizenship rather than settlement. This would mark a significant change from current practice and would require legislative provision.

Some cohorts are explicitly protected or unchanged. Partners of British citizens and British Nationals (Overseas) from Hong Kong would continue to reach settlement at five years. The consultation states that EU Settlement Scheme and Windrush grants are out of scope, and those who already hold settled status are unaffected. The paper also seeks views on transitional measures for people already on a path to settlement.

A consequential structural change flagged in the document is the removal of a separate long‑residence route. Its purpose would be replaced by the new baseline‑plus‑adjustments system, so time in the UK alone would not normally qualify without meeting the other pillars.

For lower‑paid and lower‑skilled work routes, the paper proposes a longer baseline. It consults on increasing the qualifying period to 15 years for roles below RQF level 6, including parts of the Skilled Worker and Health and Care routes. The evidence base cites the 2022–2024 surge in Health and Care visas and modelled settlement demand from this cohort in the late 2020s.

The Home Office forecasts between 1.3 million and 2.2 million people could settle between 2026 and 2030, with a central estimate of 1.6 million and a peak of around 450,000 in 2028. These projections underpin the case for tightening eligibility and pacing settlement over longer periods.

If implemented, the framework would have practical consequences for sponsors and HR teams. Employers may need to plan for longer retention periods before recruits obtain settled status, align reward structures with tax‑band thresholds that can shorten routes, and ensure robust records on English language certification, Life in the UK passes and earnings histories to support later applications.

Individuals on work or family routes should note the proposed emphasis on contribution and compliance over mere duration in the UK. Those considering applications involving public funds, or whose histories include overstaying or visitor entry, would under these proposals face longer qualifying periods. Conversely, sustained volunteering, higher English proficiency, public service employment or higher taxable earnings could shorten timelines where the rules permit. These measures are proposals and remain subject to consultation and subsequent rule changes.

The government states it will publish a summary of responses alongside economic and equality impact assessments. Submissions can be made online; the consultation closes on 12 February 2026, after which ministers will decide the final approach and any necessary legislation.