Earned Settlement Explained – A Simple Guide to the UK’s Proposed New ILR System

(Based on the Home Office Consultation: “A Fairer Pathway to Settlement-2025”)

The UK Government has published a major consultation proposing a complete redesign of the rules for Indefinite Leave to Remain (ILR). The proposal replaces the current 5-year route with a new system called “Earned Settlement.”

Below is a clear, simplified breakdown of what is being proposed.

What is “Earned Settlement”?

Currently, most applicants can obtain ILR after 5 years in the UK, provided they meet the basic requirements (English language, Life in the UK Test, good character, etc.).

The Government believes this system has become “too automatic” and wants applicants to earn settlement by demonstrating:

  • Good character
  • Real integration into British society
  • Positive economic contribution
  • Continuous lawful residence
  • The Biggest Change: ILR Increasing from 5 to 10 Years

For most visa categories – including the Skilled Worker route – the standard qualifying period would increase from 5 years to 10 years.

Certain categories would still have exceptions (e.g., Global Talent, Innovator Founder, BN(O), and partners of British citizens).

Your ILR Timeline Could Go Up or Down

This is the core of the “earned” model.

Your qualifying period can be reduced (by up to 7 years) if you:

  • Speak English at C1 level (reduces by 1 year)
  • Earn over £50,270 for 3 years (reduces by 5 years)
  • Earn over £125,140 for 3 years (reduces by 7 years)
  • Work in key public service roles (e.g., NHS, teaching) for 5 years (reduces by 5 years)
  • Undertake volunteering or community work (reduces by 3–5 years)

Your qualifying period can be increased (by up to 20 years) if you:

  • Have claimed public funds:
    • Less than 12 months → +5 years
    • More than 12 months → +10 years
  • Entered the UK illegally (e.g., small boats) → up to +20 years
  • Entered on a visit visa and remained → up to +20 years
  • Overstayed your visa by 6+ months → up to +20 years

Regardless of any reductions or penalties, all ILR applicants must satisfy:

  • Good Character

No criminal record, full immigration compliance, and no public debts (NHS, tax, or litigation).

  • English Language (B2 Level)

In addition to passing the Life in the UK Test.

  • Economic Contribution

Applicants must show earnings of at least £12,570 per year for 3–5 years (currently under consultation).
This demonstrates tax and National Insurance contributions.

Big Changes for Skilled Workers & Care Workers

Skilled Workers in RQF 3–5 roles

If you work in lower-skilled roles (below RQF level 6), the proposed qualifying period is:

15 years instead of 10 years

This effects:

  • Care workers
  • Senior care workers
  • Hospitality workers
  • Trades and service occupations

Skilled Workers in RQF 6+ roles

The standard period remains 10 years, with potential reductions depending on your contribution.

  • Public Funds May Be Restricted Until Citizenship

A major proposal is that migrants may not be allowed to claim public funds even after ILR.
Instead, access to benefits could be delayed until British citizenship.

This marks a significant policy shift.

  • Dependants Will No Longer Automatically Settle with the Main Applicant

Currently, dependants qualify for ILR at the same time as the main visa holder.

Under the new proposal, each dependant will have their own settlement timeline, based on their own contribution, integration, and circumstances.

Children under 18 will have protections, but older teenagers may need to meet their own requirements.

  • Refugees, BN(O)s & Vulnerable Groups
  • BN(O) route: Still a 5-year settlement route.
  • Resettled refugees: Proposed to move to a 10-year route, compared with a 20-year start point for in-country asylum claimants.
  • Victims of domestic abuse, bereaved partners, and long-term carers: Fast-track ILR routes will continue.
  • What Happens to People Already in the UK?

The Home Office proposes applying the new rules to everyone who has not yet obtained ILR, even if they were expecting to settle between 2026 and 2030 under the current 5-year rules.

Transitional protections may be introduced, but the consultation specifically asks whether they should be.

Why Is the Government Doing This?

The consultation explains the rationale:

  • Exceptionally high migration numbers since 2021
  • A major surge in Health & Care visa holders
  • Forecast that 1.6 million people will qualify for ILR between 2026–2030
  • Concerns about long-term public spending, integration, and pressure on services
A Simple Summary
AreaCurrent SystemProposed System
ILR timeline5 years10 years (standard) / 15 years (RQF<6)
Earned reductionsNot availableUp to 7 years off
PenaltiesLimitedUp to +20 years
DependantsSettle with main applicantMust earn settlement individually
Public fundsAllowed after ILRPossibly only after citizenship
Refugees5 years10–20 years depending on route
What This Means for Migrants

Many applicants will need to:

  • Navigate longer ILR timelines
  • Achieve higher English levels
  • Demonstrate stronger earnings and compliance
  • Avoid overstaying or accessing public funds
  • Keep thorough evidence of employment, contribution, and integration
How Our Firm Can Assist

At KTS Legal, we can help you:

  • Understand how the proposed changes affect your ILR timeline
  • Assess whether you qualify for any reductions
  • Review your immigration compliance, earnings, and documentation
  • Plan effectively for dependants and children
  • Advise employers on the impact these changes may have on their workforce

This is a significant change to ILR rules in a generation. For accurate, up-to-date guidance on your immigration position in the UK, please contact us at info@ktslegal.com.