House of Lords Questions the Government’s Earned Settlement Proposals: What This Means for UK Migrants

(Based on the House of Lords Justice and Home affairs Committee’s report, “Settlement, Citizenship and Integration” (HL Paper 13), on 23 June 2026)

The Government’s proposed Earned Settlement reforms continue to attract significant attention. While the proposals remain under consultation and have not yet been implemented, the House of Lords Justice and Home Affairs Committee has now published its report examining whether the proposed changes are likely to achieve the Government’s stated objectives of promoting integration and rewarding contribution.

The Committee broadly agrees that settlement should reflect an individual’s commitment to the UK and recognises that requirements relating to lawful residence, English language ability and good character are legitimate features of the immigration system. However, it raises substantial concerns about several aspects of the proposed Earned Settlement model and recommends that a number of the proposals should be reconsidered before any legislative changes are introduced.

The Committee Supports the Principle, but Questions the Design

The Government has argued that settlement should no longer be viewed as an automatic consequence of spending five years in the UK. Instead, it proposes a system in which migrants earn settlement through their economic contribution, integration into British society and continued compliance with immigration laws.

The Committee accepts that settlement has always involved meeting certain conditions and agrees that rewarding contribution is a legitimate policy objective.

Its concern, however, is not with the concept of earned settlement itself, but with how the proposed system would operate in practice.

In particular, the Committee questions whether the proposed criteria genuinely measure integration and whether they could unintentionally disadvantage many migrants who already make valuable contributions to the UK.

Income Alone May Not Reflect Contribution

One of the key features of the Government’s proposal is that applicants earning higher salaries could qualify for settlement sooner than others.

Under the consultation, applicants earning above £50,270 for three years could reduce their qualifying period by five years, while those earning more than £125,140 could qualify for a seven-year reduction. The Committee questions whether salary is an appropriate measure of an individual’s contribution to society.

It notes that many migrants who pay taxes, contribute to the economy and fill essential roles may never reach these salary thresholds, particularly those living outside London and the Southeast where average earnings are significantly lower.

The Committee also observes that the proposed thresholds are based on income tax bands rather than any assessment of an individual’s actual fiscal contribution.

It therefore recommends that any future income thresholds should instead be determined following advice from the Migration Advisory Committee and should take account of regional labour markets and wider economic evidence.

Concerns for Dependants and Families

The Committee also highlights potential difficulties for dependants.

Under the proposed model, each family member would generally be expected to qualify for settlement based on their own contribution rather than automatically becoming eligible alongside the main applicant.

The Committee notes that this could create unintended consequences for families where one partner stays at home to care for children or where a dependant is unable to work despite the household making a substantial financial contribution through the main visa holder.

It recommends that the Government explores mechanisms allowing dependants to qualify where the household as a whole represents a positive economic contribution.

English Language Requirements Remain a Priority

The Committee strongly supports the Government’s emphasis on improving English language proficiency.

It agrees that stronger English language skills are likely to improve employment opportunities, integration and participation in society.

However, it also recognises that raising language requirements without improving access to English language education could create unnecessary barriers.

The report notes that English for Speakers of Other Languages (ESOL) courses remain oversubscribed across many parts of the UK and that provision is inconsistent between different regions.

The Committee therefore recommends that the Government develops a national ESOL strategy to ensure that migrants have realistic opportunities to meet higher language requirements before these become mandatory.

Employment Supports Integration

The Committee accepts the Government’s view that employment plays an important role in successful integration.

Evidence presented during the inquiry demonstrated that migrants who enter employment are more likely to integrate successfully into British society. However, the Committee also cautions that a system heavily dependent upon employment outcomes could disproportionately disadvantage certain groups.

These include:

• migrant women who take career breaks or work part-time because of childcare responsibilities;
• refugees who often face barriers when entering the labour market;
• unpaid carers;
• individuals with disabilities or long-term health conditions; and
• victims of exploitation or trafficking.

The Committee recommends that the Government introduces appropriate exemptions for vulnerable groups, particularly where applicants are unable to satisfy income requirements because of circumstances beyond their control.

Questions Over Volunteering

The consultation proposes allowing applicants who undertake recognised voluntary or community work to reduce the time required before becoming eligible for settlement. While acknowledging that volunteering can strengthen community engagement, the Committee questions whether the evidence supports reductions of up to five years.

It also raises practical concerns about how volunteering would be assessed, whether opportunities would be equally available across the country and whether some migrants could feel pressured into unpaid work simply to protect their immigration status.

The Committee recommends that the Government provides stronger evidence demonstrating that volunteering delivers the level of integration benefit suggested by the proposals before introducing such incentives.

Sponsor Abuse and Migrant Protection

During its inquiry, the Committee also heard evidence regarding exploitation within the Skilled Worker system, particularly in the health and social care sectors. It notes that migrants whose immigration status depends upon a single employer may be particularly vulnerable to exploitation.

The Committee supports consideration of reforms that would reduce reliance on individual sponsors and instead allow greater flexibility for migrants to move between employers within the same sector while maintaining lawful immigration status.

It considers that reducing exploitation would improve both labour market outcomes and long-term integration.

What Does This Mean for Applicants?

At present, these remain proposals only.

The Committee’s report does not change the Immigration Rules, nor does it prevent the Government from implementing the Earned Settlement reforms. However, it represents one of the most detailed parliamentary examinations of the proposals and recommends significant changes before any new settlement framework is introduced.

Importantly, the current routes to Indefinite Leave to Remain available under the existing Immigration Rules unless and until Parliament approves legislative changes.

Looking Ahead

The Government is expected to consider the Committee’s recommendations alongside responses received during the Earned Settlement consultation before publishing its final policy. Further legislation and amendments to the Immigration Rules will be required before any of the proposed reforms can take effect.

For individuals planning their route to settlement, the current legal position remains unchanged. However, given the potential scale of the proposed reforms, it is sensible to remain informed and seek professional advice where future changes may affect long-term immigration planning.

How We Can Help

Our immigration team continues to monitor developments relating to the proposed Earned Settlement reforms and the Government’s response to the House of Lords Committee’s recommendations.

If you are approaching eligibility for Indefinite Leave to Remain, planning your long-term immigration strategy, or would like advice on how these proposals may affect your circumstances, we would be pleased to assist you with tailored advice based on the latest legal developments.