What Is Earned Settlement?
Under the current system, most visa holders (Skilled Worker, Health & Care, Spouse, etc.) can apply for ILR after 5 years of continuous residence. The process is largely automatic — meet the time requirement, stay within the absence limit, pass the Life in the UK Test, and you qualify.
The earned settlement system replaces this with a contribution-based model. Instead of a fixed 5-year route, you will face a 10-year baseline qualifying period that can be adjusted up or down based on how much you contribute to the UK economy and society.
The government's stated goal is to ensure that settlement is "earned, not assumed" — meaning time alone will no longer be enough. You will also need to demonstrate economic contribution, English language ability, community integration, and compliance with immigration rules.
Current Rules vs Earned Settlement
How Each Visa Route Is Affected
Baselines shown are proposed. Final figures may change when rules are laid before Parliament. "TBC" indicates the government has not confirmed details for that route.
The Points-Based Adjustment System
The 10-year baseline is not fixed. It can be reduced for positive factors or increased for negative ones. The government's consultation outlined the following framework:
Time Reduction Factors
- Annual earnings above £12,570 for a sustained period
- English language at C1 or C2 level
- Working in shortage occupations or key sectors
- Exceptional contribution to UK society
- Clean immigration compliance record
- Higher qualifications (PhD may offer greater reduction)
Time Increase Factors
- Criminal convictions (below deportation threshold)
- Claiming welfare benefits or public funds
- Immigration rule breaches or overstaying
- Outstanding government debt (tax, NHS)
- Pending litigation against the Home Office
- Failure to meet integration requirements
Will This Apply to People Already in the UK?
This is the most contentious question — and the answer is likely yes.
The government's consultation document stated: the changes would apply to "everyone in the country today who has not already received indefinite leave to remain" once the new rules take effect. This means someone who arrived on a Skilled Worker visa in 2022, expecting to qualify for ILR in 2027, could instead face a 10-year wait under the new system.
The consultation did ask whether transitional arrangements should protect people already partway through their qualifying period. However, the government's accompanying press release suggested transitional protections might only be considered for "borderline cases" — and no firm commitment has been made.
A petition opposing the retrospective application gathered over 232,000 signatures, triggering a parliamentary debate on 2 February 2026. During the debate, 35 Labour MPs and 17 MPs from other parties signed a letter urging the Home Secretary not to apply the changes retroactively. Despite this, the government has not ruled it out.
Should You Apply for ILR Now?
Immigration lawyers across the UK are giving the same advice: if you are eligible, apply now. Here is a decision framework:
New Minimum Requirements for Everyone
Regardless of the points-based adjustments, all applicants under the earned settlement system will need to meet tougher minimum requirements:
The B2 English requirement is particularly significant. B2 (upper-intermediate) is equivalent to A-level standard — a meaningful step up from B1. This requires the ability to understand complex texts, converse fluently, and express views on technical topics. If you have not already proven English at B2 or higher, you will need to sit an approved SELT at this level.
The employment requirement means you must have been earning at least £12,570 per year (the personal tax allowance threshold) with National Insurance contributions for a minimum of 3 years. This equates to roughly 19 hours per week at the 2026 minimum wage. Stay-at-home parents, carers, and part-time workers may find this requirement particularly difficult to meet.
Impact on Families and Dependants
The earned settlement proposals will significantly affect family applications:
- Dependants must qualify individually. Under the current system, a spouse and children can settle at the same time as the main applicant. Under earned settlement, each adult dependant must meet their own qualifying period, employment, and English requirements.
- Families may settle at different times. If one parent meets the requirements before the other (for example, if one parent is a stay-at-home carer who does not meet the £12,570 earnings threshold), the family could be split across different immigration statuses for years.
- Children turning 18 face uncertainty. Children are currently eligible for ILR alongside their parents. Under the new system, those turning 18 during the process may need to transition to their own settlement route. The details remain unclear.
- Spouses of British citizens may be protected. Partners of British citizens are expected to continue on a 5-year route. However, partners of non-citizen ILR holders could face the 10-year baseline.
Timeline: What Happens Next
The Home Secretary has indicated rules will begin changing from April 2026, though some more complex measures may take longer to implement. The exact date depends on when the Statement of Changes is laid before Parliament.