What is happening with the proposed Earned Settlement reforms?

Current vs earned settlement framework

Currently, most immigrants can apply for settled status or indefinite leave to remain (ILR) after 5 years of continuous residence in the UK.

Proposals have been put forward by the UK Government to replace the current system with an ‘Earned Settlement” scheme. This would reform the current model to change the way ILR is earned, transitioning from being dependent on a fixed-period model to one earned by meeting the standards of four core pillars: contribution, character, integration and residence. The proposed scheme would further replace the current 5-year baseline with a 10-year baseline. The final qualifying period would be dependent on individual contribution and can result in a higher or lower qualifying period.

For example, under the proposals, high earners could earn a reduction of up to 7 years, meaning that they could qualify as early as after 3 years’ residence in the UK. By contrast, those working jobs with a skill level below RQF6 would face added years to the baseline and may therefore only qualify following 15 years’ residence. Those who overstayed, entered illegally or claimed benefits may have up to 20 years added to their qualifying period (qualifying in up to 30 years).

The proposed scheme was due to take effect in April 2026. However, following the public consultation which closed on 12 February 2026, the implementation of this policy has been postponed while the Government reviews responses from the consultation. The consultation saw more than 200,000 responses from organisations, legal advice providers and individuals.

As of June 2026, there is no date for when the new rules will come into force. However, in March 2026, the Home Secretary stated that the changes would come into force later in the year, likely in the Autumn.

Implications on visa holders, settlement applications and future immigration policy

On a wider scale, the proposal aims to manage population growth, reduce settlement volumes, and increase cost savings on public services, as only those with settled status are granted full access to public services and public funds such as welfare benefits.

The Home Secretary’s confirmation that the model will apply to people already in the UK who are yet to apply for ILR, makes prompt applications for visa holders more important and becomes a significant way of avoiding the new proposed restrictions.

It has been proposed that the majority of those applying for ILR will need to show that they have earned and paid tax in the UK. The minimum earnings threshold and duration of employment to qualify is yet to be decided. In addition, applicants will face a higher English language level requirement, increasing from the current B1 (GCSE equivalent) to B2 (A-level equivalent).

Should the reforms be implemented, it is likely that settlement applications will face harsher scrutiny and prolonged assessment, given that the standard period of qualification to apply for ILR will double to 10 years for most routes and increase to 15 years for other groups, such as care workers and medium-skilled workers.

Moreover, given the time to qualify for ILR will extend to 10+ years, individuals will be subject to additional visa renewals, which will come with additional costs. In addition to this, Home Office visa application fees are increasing, with the last increase being on 8 April 2026, by roughly 6.5% – 7%.

On the other hand, you can “earn” reductions to your qualifying period for ILR, and those who have a higher level of English language proficiency, are high earners or active volunteers, will benefit from a quicker route to ILR.

Gherson Insight

These proposals have not been finalised but delayed. There is still much uncertainty about the timeline and scope of the changes to settlement and ILR, including whether changes will apply to those already in the UK and whether there will be transitional arrangements. Therefore, if you are in a position where you qualify for ILR, we advise applying now rather than being further delayed if the proposals are enacted.

Frequently Asked Questions

What is the proposed Earned Settlement scheme?

The proposed Earned Settlement scheme is a new model that would replace the current fixed-route settlement framework. Instead of qualifying for ILR after a set period, applicants would earn settlement based on factors such as contribution, character, integration and residence.

Has the Earned Settlement scheme been introduced?

No. The proposed reforms have been delayed following a public consultation that closed on 12 February 2026. As of June 2026, no implementation date has been confirmed.

Will the qualifying period for ILR increase?

Under the proposals, the standard qualifying period for ILR would increase from 5 to 10 years. However, the final qualifying period could vary depending on an individual’s circumstances and contributions.

Could some people qualify for settlement sooner than 10 years?

Yes. The proposals suggest that certain individuals, such as high earners, could earn reductions to their qualifying period and potentially qualify for settlement after as little as 3 years of residence in the UK.

Who could face a longer route to settlement?

Under the proposals, some groups, including medium-skilled workers and care workers, could face a longer route to settlement, potentially requiring 15 years or more before becoming eligible for ILR.

Will the proposed changes apply to people already in the UK?

The Home Secretary has indicated that the new model is expected to apply to individuals already in the UK who have not yet obtained ILR. However, details of any transitional arrangements have not yet been confirmed.

Will there be new English language requirements?

Yes. The English language requirement for settlement applications has been increased from B1 level to B2 level for applications from March 2027.

How could the reforms affect visa holders financially?

If the qualifying period for settlement increases, individuals may need to renew their visas more frequently before becoming eligible for ILR. This could result in additional application fees and related immigration costs.

Should I apply for ILR now if I am already eligible?

If you already meet the current requirements for ILR, it may be beneficial to apply as soon as possible to avoid potential delays or restrictions if the proposed reforms are implemented. Professional immigration advice should be sought based on your circumstances.

When will the new Earned Settlement rules come into force?

There is currently no confirmed implementation date. The Government is reviewing responses to the public consultation, and further announcements are expected in due course.

How Gherson can assist

Gherson’s Immigration Team are highly experienced in advising on UK visa matters. If you have any questions arising from this blog, please do not hesitate to contact us for advice, send us an e-mail, or, alternatively, follow us on X, Facebook, Instagram, or LinkedIn to stay-up-to-date.

The information in this blog is for general information purposes only and does not purport to be comprehensive or to provide legal advice. Whilst every effort is made to ensure the information and law is current as of the date of publication it should be stressed that, due to the passage of time, this does not necessarily reflect the present legal position. Gherson accepts no responsibility for loss which may arise from accessing or reliance on information contained in this blog. For formal advice on the current law please do not hesitate to contact Gherson. Legal advice is only provided pursuant to a written agreement, identified as such, and signed by the client and by or on behalf of Gherson.

This article was first published in 2024 and has been updated in June 2026. 

©Gherson 2026