The United Kingdom is preparing to restructure its long-term immigration framework by shifting from an automatic five-year settlement pathway to a conditional system of earned ILR. The consultation paper, titled A Fairer Pathway to Settlement, was launched on 28 November 2025 and will remain open for public feedback until 12 February 2026, as reported by The WP Times. The proposal represents the biggest structural adjustment to settlement policy in more than a decade and would directly affect the way long-term residents achieve permanence in the UK.
Current ILR structure and why reform is being proposed
Under the existing system, most Skilled Worker visa holders become eligible for Indefinite Leave to Remain after five continuous years of residence, provided they pass the Life in the UK test, meet absence limits (generally no more than 180 days per rolling 12-month period), demonstrate continued employment and satisfy financial maintenance criteria.
The Government argues that time alone is no longer considered a reliable indicator of contribution or integration, and that economic value combined with public responsibility should form the basis of long-term status.
Core proposal: settlement period extended to 10 years
The Home Office plan introduces a default qualifying period of ten years for ILR, replacing the current five-year standard. Early ILR may still be achieved but only through demonstrable contribution, either economic, social or professional. The earned settlement model therefore moves away from automatic entitlement based on duration and towards performance-based progression.
EU nationals with status under the EUSS scheme are not included in the reform. The earliest implementation window is expected in spring 2026.
Minimum criteria to qualify for ILR under the new model
Even after ten years of residence, applicants will still need to meet a mandatory baseline of requirements:
| Requirement | Specification |
|---|---|
| English language | Minimum B2 CEFR level |
| Legal and financial integrity | No government debt or ongoing litigation |
| Life in the UK test | Must still be passed, with possible reform |
| Earnings | Minimum £12,570 annually for 3–5 years before application |
| Suitability | No criminal history meeting refusal grounds |
These conditions make settlement contingent not only on presence, but on sustained employability and societal compliance.
How settlement could be earned faster: acceleration criteria
Only one reduction mechanism may be used per application.
| Attribute | Reduction | Earliest ILR |
|---|---|---|
| English proficiency at C1 | 1 year | 9 years |
| Volunteering or community service | 3–5 years | 5–7 years |
| Work in RQF6+ public service roles | 5 years | ~5 years |
| Earnings of £50,270+ for 3 years | 5 years | ~5 years |
| Earnings of £125,140+ for 3 years | 7 years | 3 years |
| Global Talent or Innovator | 7 years | 3 years |
| Family and BNO routes | 5 years | 5 years |
Under this structure, contribution replaces time as the primary driver of permanence.
When the pathway could be extended beyond 10 years
Where applicants rely on public funds or breach immigration conditions, the default term would lengthen.
| Factor | Increase | Total residency |
|---|---|---|
| Public funds <12 months | +5 | 15 years |
| Public funds >12 months | +10 | 20 years |
| Illegal arrival (small boats) | +20 | 30 years |
| Entry as a visitor | +20 | 30 years |
| Overstay of 6+ months | +20 | 30 years |
In severe cases settlement may become unobtainable or delayed for multiple decades.
Business impact and labour-market consequences
Raising ILR eligibility to ten years will likely increase sponsorship costs for employers and extend reliance on temporary work visas. With five-year Skilled Worker sponsorship already costing around £14,000 for medium and large firms, doubling the residency period could intensify financial pressure on recruitment budgets.
Sectors dependent on mid-skill labour such as care, hospitality and logistics may experience heightened shortages if fewer migrants see long-term settlement as attainable. High-earning categories remain the primary beneficiaries.
Retrospective application — the most sensitive element
The consultation states that changes may apply retrospectively to individuals already on the five-year track. For thousands of current residents this could mean delayed ILR and a radical alteration of expected timelines. Legal opinion has already highlighted potential grounds for challenge should rules be applied to historic cohorts.
Public submissions and next steps
The consultation remains open until 11:59pm on 12 February 2026. Employers, representative bodies, advocacy groups and private residents are invited to submit responses and propose amendments to the structure of the earned settlement model. The outcome will determine whether the five-year pathway becomes an exception rather than the norm in the UK immigration system.
Read about the life of Westminster and Pimlico district, London and the world. 24/7 news with fresh and useful updates on culture, business, technology and city life: Burger King SpongeBob Menu UK: All Krabby Whopper Prices and Collectibles Revealed