New restrictions on access to public funds: what employers and Family visa holders need to know

The Government has announced a bombshell consultation that — if implemented — could significantly reshape how migrants settle in the UK. On 20 November 2025, proposals were published that would fundamentally change the path to permanent residence.

The big changes

Settlement is set to become more difficult. The familiar five-year route to Indefinite Leave to Remain (ILR) could extend to 10 years for most visa holders.

In addition to that, time spent in the UK alone will no longer be enough. Under the new “Earned Settlement” model, applicants will need to meet four key criteria:

• Residence – living in the UK;
• Contribution – earning at least £12,570 per year for 3-5 years;
• Integration – showing participation in UK society; and
• Character – maintaining good conduct.

Access to public funds will also be restricted. The proposal suggests that many benefits and social housing may be made available only to British citizens, and not to those with ILR or settlement.

What this means for visa holders

If you are on a Family visa or planning to stay in the UK long-term, you should prepare for stricter rules:

• Check if your visa carries an endorsement saying “No Recourse to Public Funds” (NRPF);
• Plan for complete financial self-sufficiency from day one;
• Expect longer waiting periods before accessing any social support; and
• Those relying on benefits may face extended delays in obtaining settlement.

What employers should know

If you are sponsoring migrant workers, here is what you need to know:

• Many employees will not have access to public funds, which may affect their financial stability;
• Staff may need to stay in the UK for ten years before qualifying for settlement;
• Dependants may struggle with housing and childcare support; and
• Employers may need to consider offering extra support, such as immigration advice, financial planning or housing assistance.

The consultation remains open until 12 February 2026. Several details could still change, including:

• Income thresholds and duration requirements;
• How the rules will apply to people already in the UK;
• Exceptions for vulnerable groups and children.

This proposal represents the biggest overhaul of UK immigration regulations in decades. If implemented, these changes will require migrants to be more financially resilient and self-sufficient than ever before. Whether you are a visa holder or an employer, now is the time to plan ahead and stay informed as these proposals develop.

Disclaimer: The Immigration rules are subject to change, and this information is based on current proposals and announcements as of November 2025, not law. It is always best to seek professional legal advice for your specific situation and circumstances. 

Gherson’s Immigration Team are highly experienced in advising on all 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.

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