The House of Lords Report on UK settlement reforms

The House of Lords publishes opposition to proposed Government changes to UK settlement routes

In 2025, the UK Government published new proposals for changes to UK immigration rules. Amongst these proposals were three key changes:

1. Extending the baseline qualifying period for Indefinite Leave to Remain in the UK (ILR), also known as settlement, from 5 to 10 years.
2. Applying these proposed changes retrospectively to anyone who has yet to receive ILR status.
3. Introducing an ‘earned settlement’ scheme where the qualifying period for ILR is reduced or increased depending on further criteria, such as income, reliance on public funds and English proficiency.

In light of these proposed changes, the House of Lords Justice and Home Affairs Committee has undertaken an inquiry into the proposed settlement and citizenship policies. This blog will explore the key takeaways in relation to each of the three key changes outlined above.

Proposed extension to the route to settlement

The Committee ultimately opposes the Government’s proposals to extend the baseline qualifying period for settlement to 10 years. It highlights that this extension would make the UK policy more restrictive than other high-income countries and render the UK an ‘outlier’.

The Committee has also concluded that extending the qualifying time may have adverse effects on integration by limiting migrants’ abilities to make long-term employment, family and housing decisions. Furthermore, extending the route may increase undocumented migration if low-income migrants cannot afford to renew their status due to the costs associated with it, such as application fees and the Immigration Health Surcharge.

Instead, the Report sets out that the Government should consider extending the application of the ‘No Recourse to Public Funds’ limitation. This means that individuals would still qualify for ILR after 5 years but would be unable to access public funds for a longer period, such as 10 years, or until they gained British citizenship. This would address concerns about migrants accessing public funds once obtaining ILR, without undermining certainty and long-term planning.

Proposed retrospective application of the new immigration rules

Due to the Government’s concerns over migrants qualifying for ILR and immediately receiving public funds, the Government has proposed to apply the extended qualifying period to all migrants who are yet to receive ILR. This means that individuals and families currently on a 5-year route may have to wait longer to settle if the changes come into force.

The Committee questions whether a retrospective application of the rules is constitutional, referring to the House of Lords Constitution Committee which states that the rule of law requires laws to be prospective and only apply to subsequent actions and behaviours. The report also highlights that many witnesses have questioned the legality of a retrospective application, raising the prospect of legal challenges to the policy, if it is implemented.

The Committee concludes with firm opposition to this proposal, stating that any retrospective changes would be ‘manifestly unfair’ to migrants who have made long-term decisions and planned their lives around the current system. The report draws particular attention to the case of migrants on the Hong Kong BN(O) visa route because previous Government statements had assured migrants on this route that they would qualify for citizenship without further requirements.

Introduction of an ‘earned settlement’ scheme

Within the proposed ‘earned settlement’ scheme, the Government has suggested that the maximum reduction in qualifying period migrants would be able to achieve would be 7 years, and this would apply to high-income migrants. The maximum extension in qualifying period being consulted on is 20 years, in addition to the normal 10-year proposed timeline. This extension could apply to migrants who arrived in the UK illegally, entered the UK on a visit visa or overstayed their permission.

The Committee has, overall, given a mixed response to these proposals and reserved full judgment. The report acknowledges that citizenship has always had to be earned in some respects, and that this is a sensible and internationally implemented approach. However, the report outlines objections to particular details and suggests that further clarification on how additions and reductions would operate are needed. The Committee suggests that combining additions and reductions should be done in a way that means people who are subject to additions are still incentivised to pursue desirable outcomes such as higher paid employment or greater language skills.

Conclusion

The recent report from the House of Lords highlights some of the opposition and challenges that the Government will face in implementing its proposed changes to the immigration rules. Strong opposition to the proposed extension of the baseline qualifying time and the retrospective application of changes is significant. However, the proposals have not been finalised by the Government yet and are still subject to change.

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