The UK government has announced proposals for an ‘earned settlement’ scheme, which will, for most people, make qualifying for indefinite leave to remain (ILR) a more difficult and lengthy process. The government is currently consulting on some aspects of the proposed scheme and expects to start implementing changes from April 2026.
As many specifics of the scheme are under consultation, and detail is lacking in some areas, the full impacts are not currently clear and may not be known until we see the government’s response, which is expected soon after the consultation closes on 12 February 2026.
People already granted ILR will not be affected by the proposed changes but people who are currently in the UK with limited leave on a settlement route will be affected unless transitional measures are applied. The government is also consulting on whether to restrict access to benefits for people who are granted ILR.
In this article, we consider the proposed changes and their likely impacts on residents and councils.
The proposals include:
- New mandatory requirements
- Changes to the standard qualifying period for settlement
- Factors that will decrease the standard qualifying period
- Factors that will increase the standard qualifying period
- Changes to benefit entitlement for people with ILR
Mandatory requirements
The policy indicates that anyone applying for settlement must meet the mandatory requirements. However, it appears that these will not apply to people obtaining settled status under the EU Settlement Scheme or ILR under the Windrush Scheme. The government has not confirmed whether people on any other routes will be exempt from the mandatory requirements.
The mandatory requirements include:
- Suitability requirements – with criminality thresholds due to be reviewed
- Not having any litigation, NHS, tax, or other government debt
- Meeting English language requirements at a higher level (B2 rather than B1) and passing the life in the UK test
- Having annual earnings above £12,570 for a minimum period of 3 to 5 years (subject to consultation)
The detail of the suitability requirements is not yet clear, but holding any type of criminal conviction, having an unpaid NHS debt, or previously breaching immigration laws could result in a person never being able to obtain ILR.
The mandatory requirements are not being consulted on, other than the new annual earnings requirement. A person will not be able to obtain ILR if they do not have earnings above £12,570 for at least 3 to 5 years. The consultation asks whether people on maternity leave or who have a long-term illness or disability, and those in occupations with different pay arrangements, should be exempt from annual earnings requirement. The government also invites suggestions for other groups that should be exempt.
Women, carers, younger and older workers, single parents, and people with a mental or physical health condition or long-term illness, are likely to be disproportionately affected by the minimum earnings requirement due to being unable to work or more likely to be undertaking low-paid or part-time work. However, the extent to which the minimum earnings requirement affects these groups will depend on whether any exemptions are applied.
Settlement qualifying periods
For most people, the government intends to increase the standard qualifying period for settlement from 5 to 10 years. The standard qualifying period can be increased or reduced depending on a range of factors that mainly relate to economic contribution.
Whose qualifying period will stay the same?
The government states that there will be no change to the settlement qualifying period for:
- People applying for ILR under the Windrush Scheme
- People applying for settled status under the EU Settlement Scheme
- Members of the armed forces and their family members (although the consultation asks if they should be able to have time deducted in line with the earned settlement scheme)
- Children of settled parents (UK born or resided for 7 years)
The government is consulting on whether the current position should be maintained for people applying for ILR on the following grounds:
- A person with leave as a partner whose relationship has broken down due to domestic abuse - can settle immediately
- A bereaved partner - can settle immediately
- An adult with long-term care needs who is joining a close family member (adult dependent relative) - can settle immediately
- A child or young adult who grew up in the UK without immigration status – can settle after 5 years
The consultation asks whether the position of any other groups should be considered in light of their vulnerability or compassionate circumstances.
The following people will continue to be able to qualify for settlement after 5 years:
- Hong Kong BN(O) visa holders
- Person with permission as the parent, partner or child of a British citizen who meets ‘core family requirements’
It is not clear whether Hong Kong BN(O) visa holders and family members of a British citizen could have their standard qualifying period further reduced or increased, should any of the earned settlement criteria apply to them. Also, it appears that partners of people with ILR (rather than British citizenship) may not benefit from the 5-year reduction.
People with student visas or Ukraine leave are not directly affected by the earned settlement proposals because they are not on a settlement route. However, the policy states that the 10-year long residence rule will be abolished, which may mean that settlement can no longer be obtained by adding up leave that has been accumulated across multiple immigration routes.
Who will have a longer qualifying period?
The standard qualifying period for settlement will increase from 5 to 10 years for most people, including people who are in the UK in a work category and some people on family life routes. This change is not being consulted on.
People who are granted refugee status after claiming asylum in the UK will have their standard qualifying period increased from 5 to 20 years, unless they move into a new ‘core protection work and study’ route, in which case they may be able to reduce their settlement pathway in line with the earned settlement criteria. The government has also announced separate proposals that will affect people in the asylum system.
The government is consulting on whether to:
- Increase the standard qualifying period from 5 to 15 years for health and care worker visa holders and others who have been sponsored to work in an occupation below RQF level 6 (i.e. lower than degree level)
- Increase the standard qualifying period to 10 years for refugees who come to the UK on a resettlement programme
- Reduce the standard qualifying period from 10 years by 5 or 7 years for people on humanitarian visa routes (e.g. Syrian, Afghan)
Will the changes apply to people who are already in the UK?
The government has indicated that the changes will apply to people who are already living in the UK on a settlement route but is consulting on whether any transitional measures should be implemented. Therefore, it is currently unclear whether, and to what extent, the earned settlement scheme will apply to people who already have leave to remain in the UK on a settlement route.
What is the position for dependants?
Dependants will continue to only be able to apply for settlement if the main applicant qualifies for ILR.
The consultation asks whether dependent partners and children over 18 (at an unconfirmed cut-off age) should be required to ‘earn’ settlement in their own right. This would mean that they would not qualify for ILR in line with the main applicant but may qualify after a longer or shorter period, depending on their individual circumstances.
The government will continue to allow children who were given leave as a child dependant to settle after they turn 18 but intends to develop a cut-off age, at which they will need to qualify for settlement in their own right, possibly with the mandatory requirement relating to earnings waived.
What is the position for children?
It is currently unclear how the earned settlement scheme will affect children who are either unaccompanied or within families. The consultation asks about how specific groups should be considered in relation to settlement and how the proposed changes could affect children in the UK.
The policy states:
'In developing an earned settlement system, we will take full account of the appropriate pathways to settlement and citizenship for children either born in the UK or arriving here. This will include unaccompanied children and other vulnerable children or families. We will take account of their specific needs and vulnerabilities. We particularly welcome views on how the development of an earned settlement system should take account of children.'
The government has also re-stated its commitment in the Immigration White Paper to establish a pathway to settlement for children in care and care leavers and to put in place safeguards for children who do not have status when they turn 18 after being in the UK for most of their life. These pathways have not yet been developed and are not being considered in the earned settlement consultation.
How will the earned settlement model work?
The earned settlement model sets out different criteria that will reduce or increase the standard qualifying period by a specified number of years (see tables 2 and 3 in the consultation document).
Where criteria for a reduction and increase apply, both will be combined to calculate the total settlement period. Where more than one reduction or increase applies, the one that causes the largest time adjustment will be applied.
Reductions to the settlement qualifying period
Reductions will be awarded to:
- High earners (when at least £50,270 taxable income has been earned for 3 years prior to applying for ILR)
- People with an advanced level of English (C1)
- People in public sector roles paid in line with national pay scales (but may need to be at RQF level 6 or above)
- People who have made a significant community contribution through volunteering
- Holders of a global talent or innovator founder visa
- Specific and vulnerable groups
These requirements are all being consulted on, including volunteering and how a person’s contribution and integration should be assessed.
Increases to the settlement qualifying period
Increases to the settlement qualifying period are based on compliance with immigration laws and whether people have accessed public funds (benefits or local authority housing assistance).
Increase for overstayers, visitors, and people entering illegally
The standard qualifying period will be increased if the person has:
- Overstayed for 6 months or more
- Arrived in the UK illegally, such as via a small boat or clandestine entry (unless they are a refugee)
- Entered the UK on a visit visa
The government is consulting on whether the increase should be 5, 10, 15 or 20 years, or whether there should be no penalty.
Should the maximum penalty be imposed, this could leave a person unable to qualify for settlement for 30 years (in addition to however long they have already been living in the UK).
This penalty is most likely to affect people who are already on a 10-year settlement route with leave granted under the family life rules (when they did not meet residence requirements) or under the private life rules, which allow for a person who has lived for a long time in the UK without lawful status to be granted leave to remain (usually after 20 years for adults).
It is also possible that other people with leave under the family life rules may have experienced a short period of overstaying, which brings them within scope of this penalty. However, it is not clear to what extent previous periods of overstaying and illegal entry will be relevant to meeting the mandatory requirements.
The government has confirmed that a person granted refugee status will not have their standard qualifying period of 20 years increased if they arrived in the UK illegally.
Increase for accessing public funds
The government is consulting on whether the standard qualifying period of 10 years should be increased if the person has accessed public funds (benefits and local authority housing) for the following periods during their route to settlement:
- Less than 12 months – increase of 5 years
- More than 12 months – increase of 10 years
The penalty will not apply to people who have claimed benefits as a result of the social security agreements that the UK has with a limited number of countries.
The majority of people who are subject to the earned settlement proposals have a 'no recourse to public funds' (NRPF) condition and therefore will be unable to claim benefits or access local authority housing. Anyone who has breached their conditions by claiming a public fund that they are not entitled to could be refused settlement under the mandatory suitability grounds.
Therefore, increasing settlement periods on this basis is most likely to affect people who have been granted access to public funds because they are destitute or at risk of destitution, or there are child welfare or other exceptional reasons. People in this position will usually be on a 10-year settlement route with leave granted on family or private life grounds.
However, the policy states:
'The Home Office recognises that some applicants (such as those from vulnerable groups) may have extenuating circumstances to claim public funds. Later questions will explore whether specific groups should be exempt from the proposed reforms.'
Public funds for people with ILR
Finally, the government is also consulting on its proposal to impose a ‘no recourse to public funds’ condition on people who have ILR. This would result in a person with ILR being ineligible for benefits, local authority homelessness assistance, and a local authority allocation of social housing.
This change, if implemented, will not affect anyone who already has ILR.
The policy states:
'The government believes that the development of an earned settlement system should include a reassessment of the benefits accruing to settlement and where the accrual of those benefits might in future sit in the journey to settlement and citizenship respectively. Under this option, new migrants granted settlement would continue to be unable to access specified benefits in line with existing visa conditions. This would have the effect of shifting the default position on access to benefits to citizenship rather than settlement.'
The proposal to excluded people with ILR from public funds needs to be considered in the context of the government’s intention to reform citizenship requirements, which may be revised after the earned settlement scheme is confirmed.
The policy states:
'The Immigration White Paper also stated that reforms to citizenship will be introduced, and that these would build on any changes made to settlement through the earned settlement approach. These would aim to reflect similar principles for extending qualifying periods, while allowing those who have made greater contributions to qualify sooner.'
The government has stated that it will consult separately on migrants’ access to benefits, including a proposal to restrict access to benefits for refugees and other migrants who currently have the right to receive public funds. This consultation is expected later in the year.
Impacts on individuals
It is difficult to establish what the full impact of the new policy will be for individuals without knowing whether any transitional measures will be applied and whether any exemptions to the scheme or mandatory requirements will be applied. The outcome of the consultation on these matters is going to be particularly crucial. However, it is clear that for people arriving when the new rules are in place, and possibly for many people already in the UK, the qualifying period for settlement is likely to at least double.
Requiring people to re-apply for leave regularly, and being subject to a NRPF condition for lengthy periods, puts people and children at greater risk of experiencing destitution and homelessness and losing their lawful status - difficulties that are experienced by people who are currently on a 10-year settlement route. These risks are particularly heightened for single-mothers, who are disproportionately affected by destitution when they are restricted from accessing benefits by their immigration status.
There is a possibility that financial pressures will increase for work visa holders who are low to middle-income earners, as they are most likely to remain on a 10 or 15-year settlement route and will need to regularly meet the high costs associated with re-applying for leave to remain. Families may struggle to repeatedly meet these costs and manage their daily expenses whilst remaining subject to the NRPF condition for a much longer period, with some also unable to access childcare funding during this time. Many people on sponsored work visas will need to maintain specific employment for at least twice as long as they currently do.
The penalties for overstaying, entering illegally, entering as a visitor or accessing public funds are likely to primarily apply to people who are already on a 10-year settlement route and who will have been granted leave due to having an established family or private live in the UK. This leave is often held by single parents with British children or children who have lived in the UK for a long time. Increasing settlement periods to 15, 20 or 30 years will hinder their integration and fails to promote the best interests or safeguard the welfare of children, including those with British citizenship.
Increasing the qualifying period for people who have claimed benefits heavily penalises the small number of people who have been granted access to public funds because the Home Office has accepted that this is necessary to safeguard the welfare of children and alleviate destitution. Therefore, the benefits penalty is likely to disproportionately affect single parents (usually mothers), carers of family members or friends, and people with disabilities or a long-term illness. Imposing such a penalty could render the change of conditions process an ineffective safeguard against homelessness and destitution.
There is likely to be a lot of concern amongst migrant communities about the effects of the proposed changes. Uncertainty about how some of the proposals might work in practice means that people cannot be fully informed about the consequences of taking certain actions now, such as claiming benefits when access to public funds has been granted.
Impacts on councils
Increasing settlement routes to up to 30 years will not promote cohesive communities or the integration of residents, including children, who have been recognised by the Home Office as having a future in the UK. Making the security of settlement more difficult to obtain and imposing restrictions on accessing benefits for people who obtain ILR is likely to give rise to an increase in migrant homelessness and destitution, which councils will be required to respond to by providing accommodation and financial support to safeguard the welfare of children, care leavers and adults with care needs.
Therefore, a key concern for councils will be whether these changes result in any further cost-shunts. In the financial year 2024-25, councils spent at least £94 million providing accommodation and financial support to families, care leavers and adults with care needs who are excluded from the mainstream benefits system.
Increasing the need for multiple applications and implementing a complex set of rules will create additional bureaucracy for the Home Office and may create processing delays in other casework areas, which can lead to people requiring long-term support when this is provided by children’s or adult social care. The changes are also likely to create greater demands on the immigration advice sector at a time when the availability of free advice is extremely limited and councils are often funding advice for people they are supporting.
Councils will struggle to fulfil the UK government’s ambitions to end homelessness and tackle child poverty if need for this vital safety-net rises and central government does not provide any financial assistance to help councils meet substantial support costs.
What happens next?
We will be submitting a response to the consultation, which closes on 12 February 2026. The Home Office will then publish a response to the consultation and may begin to implement some changes as soon as April.
Councils should signpost anyone they are supporting who appears to qualify for settlement to an immigration adviser to find out if they meet the current rules. There may, for example, be people with family or private life leave who are close to the end of their 10-year settlement period who are currently receiving local authority support. Given the significant long-term benefit achieving settlement before the new proposals are introduced, councils may also need to explore ways of covering the application fee and other associated costs, where an application for ILR can be made.
Any council responding to the consultation is welcome to contact us if they have any questions about how the new proposals may affect their services and residents.