Earned Settlement
Earned settlement is the UK government's proposed replacement for the current ILR system. The baseline qualifying period rises from 5 to 10 years, but high earners (£50,270+) and public service workers can reduce it back to 5. The system assesses four pillars: character, contribution, integration, and residence.
In This Article
- What is earned settlement?
- The four pillars
- Baseline qualifying periods
- Reductions — how to shorten your qualifying period
- Extensions — what adds time
- Mandatory requirements for all applicants
- What this means for Skilled Worker visa holders
- Dependants and children
- Timeline and current status
- How to prepare
- Frequently asked questions
- Related terms
What Is Earned Settlement?
Earned settlement is the UK government's proposed overhaul of how migrants qualify for permanent residency. The consultation document, titled "A Fairer Pathway to Settlement," was published in November 2025. It followed the May 2025 Immigration White Paper "Restoring Control over the Immigration System."
Under the current system, most work visa holders qualify for Indefinite Leave to Remain (ILR) after 5 years of continuous residence. The proposal replaces this with a 10-year baseline that can be shortened or lengthened depending on your income, conduct, English level, and community involvement.
The government's stated aim: permanent residency should be "earned, not simply accrued." Settlement will no longer be automatic after a fixed period.
The Four Pillars
The consultation designs the new system around four pillars. All four feed into the qualifying period calculation:
1. Character
Mandatory — you must meet this to apply at all. No trading against other factors.
- Clean criminal record and history of lawful conduct
- Full immigration compliance across the entire qualifying period (no overstays, no condition breaches)
- No outstanding NHS debt, tax liability, or unresolved litigation with the UK Government
- Part Suitability requirements met throughout
2. Contribution
Your economic contribution, measured primarily by HMRC-verified taxable income. Higher earnings earn larger reductions in qualifying period:
- Minimum: taxable annual income above £12,570 (the personal allowance) for 3–5 years prior to application
- Mid-tier: £50,270+ for 3 consecutive years → 5-year reduction
- High-earner: £125,140+ for 3 consecutive years → 7-year reduction
HMRC assesses income from its own records, not self-reported figures.
3. Integration
- English language at B2 level minimum (up from current B1), confirmed to take effect from 26 March 2027
- Achieving C1 level earns a 1-year reduction
- Life in the UK test: still a mandatory requirement
- Community volunteering: extensive involvement can earn a 3-to-5-year reduction
4. Residence
Lawful, continuous UK residence remains required, but residence alone is no longer sufficient. The government is removing the standalone 10-year long residence route.
Baseline Qualifying Periods
The baseline is the starting point before any reductions or extensions apply:
| Route / Category | Current | Proposed baseline |
|---|---|---|
| Skilled Worker (RQF Level 6+) | 5 years | 10 years |
| Skilled Worker (below RQF Level 6) | 5 years | 15 years |
| Health and Care Worker (RQF 3–5) | 5 years | 15 years |
| Family visa (partner/parent) | 5 years | 10 years |
| Global Talent / Innovator Founder | 3–5 years | 3–5 years |
| Hong Kong BN(O) | 5 years | 10 years (with 5-year reduction) |
| Refugees (resettlement programme) | 5 years | 10 years |
| Refugees (in-country asylum claim) | 5 years | 20 years |
The 15-year baseline for below-RQF-6 roles hits care workers and other lower-skilled sponsored roles hardest.
Reductions — How to Shorten Your Qualifying Period
Reductions stack, but you still must meet all mandatory requirements. The key accelerators:
| Factor | Reduction | Resulting period (from 10-year baseline) |
|---|---|---|
| Taxable income £125,140+ for 3 years | −7 years | 3 years |
| Taxable income £50,270+ for 3 years | −5 years | 5 years |
| Public service role (RQF 6+) for 5 years | −5 years | 5 years |
| British citizen's partner/parent/child | −5 years | 5 years |
| Hong Kong BN(O) holder | −5 years | 5 years |
| Community volunteering (extensive) | −3 to −5 years | 5–7 years |
| English at C1 level | −1 year | 9 years |
The income-based reductions matter most for Skilled Worker visa holders. If you earn above £50,270 (the higher rate tax threshold) for the 3 years before you apply, your qualifying period drops back to 5 years. Earn above £125,140 and it drops to 3 years.
"Public service roles" at RQF 6+ include NHS doctors, nurses (degree-level), teachers with QTS, and social workers.
Extensions — What Adds Time
Extensions are penalties. They apply on top of the baseline and can push qualifying periods well beyond 10 years:
| Factor | Extension |
|---|---|
| Claimed public funds for less than 12 months | +5 years |
| Claimed public funds for 12+ months | +10 years |
| Entered the UK illegally | +20 years |
| Original entry on a visitor visa | +20 years |
| Overstayed permission by 6+ months | +20 years |
Combined with a 10-year baseline, someone who entered on a visitor visa and overstayed could face a 30-year qualifying period. The government has made clear that the harshest penalties target irregular entry and overstaying.
The public funds extension is a new risk for workers who lose employment and need interim support. Even short-term use of benefits during the qualifying period adds 5 years.
Mandatory Requirements for All Applicants
Regardless of your qualifying period, every applicant must meet these at the time of application:
- Character/suitability: Part Suitability compliance throughout the entire qualifying period
- English: B2 level minimum (CEFR)
- Knowledge: Pass the Life in the UK test
- Income: Taxable earnings above £12,570 for at least 3 years prior to application
- Debt-free: No outstanding NHS charges, tax debts, or government debts
- Continuous residence: Lawful UK residence throughout the qualifying period
Failing any mandatory requirement blocks the application. These cannot be offset by excelling in other areas.
What This Means for Skilled Worker Visa Holders
The impact depends heavily on your salary and role level:
Earning above £50,270? Your path to settlement stays at 5 years, effectively unchanged from the current system. You will face stricter requirements (B2 English, debt-free, continuous suitability compliance), and the income must be sustained for 3 consecutive years before applying.
Earning between £12,570 and £50,270? The baseline doubles to 10 years. You will need to renew your visa at least once more, paying additional visa fees and Immigration Health Surcharge. That's roughly £3,000–£5,000 in extra costs per renewal for a single applicant.
Working below RQF Level 6 (e.g., care workers)? The baseline is 15 years, tripling the current 5-year route. This affects a large portion of Health and Care Worker visa holders.
Salary sacrifice risk. If your income is close to the £50,270 threshold and you participate in salary sacrifice arrangements (pension contributions, cycle-to-work schemes), your HMRC-reported taxable income could fall below the threshold. This matters because HMRC records are the assessment basis, not gross salary.
Dependants and Children
Under the current system, dependants generally settle alongside the principal applicant. The consultation proposes changing this:
- Adult dependants will be assessed independently. Their qualifying period will be based on their own attributes, not the principal applicant's timeline.
- Children may be assessed separately when they reach adulthood, with proposals for transitioning to independent pathways
- The consultation proposes special protections for those unaware of their unlawful status upon turning 18
Assessing dependants independently is a major shift. A sponsored worker who qualifies after 5 years (via the income reduction) may see their non-working partner face a 10-year wait.
Timeline and Current Status
| Date | Event |
|---|---|
| May 2025 | Immigration White Paper published |
| November 2025 | "A Fairer Pathway to Settlement" consultation opened |
| 12 February 2026 | Consultation closed |
| 26 March 2027 | B2 English requirement takes effect (via separate Statement of Changes) |
| April 2026 (target) | Government intends to begin implementing reforms |
| TBC | New Immigration Rules laid in Parliament |
The B2 English requirement is already confirmed via a March 2026 Statement of Changes and takes effect from 26 March 2027, regardless of the broader earned settlement timeline. The remaining reforms are still at consultation stage, and no draft Rules have been published.
Out of scope: EU Settlement Scheme grants, Windrush Scheme grants, existing ILR holders, and Armed Forces pathways (Covenant protections maintained).
How to Prepare
- Apply for ILR under current rules if eligible. If you meet the existing 5-year requirement, applying now removes the risk of being caught by new rules. The proposals apply prospectively to those not yet granted settlement.
- Check your HMRC taxable income. The £50,270 threshold is based on HMRC records. Review your P60 or Self Assessment to confirm your taxable income is where you think it is. Watch out for salary sacrifice reducing your reported figure.
- Start B2 English preparation. The B1-to-B2 jump is significant. B2 means you can understand the main ideas of complex texts and interact fluently. Book an IELTS for UKVI practice test to gauge your current level.
- Keep detailed records. Save every payslip, P60, and tax return. HMRC records are the assessment basis, but having your own copies protects you.
- Maintain suitability throughout. The Home Office assesses character and suitability across the entire qualifying period. Report changes to your sponsor promptly. Avoid any condition breaches. Clear any NHS or tax debts before applying.
- Avoid public funds. Even short-term use adds 5 years. If you lose employment, explore all alternatives before claiming benefits.
Frequently Asked Questions
When will earned settlement come into effect?
The government has indicated a target of April 2026 for the first changes, but no Immigration Rules have been laid in Parliament yet. The consultation closed in February 2026 and responses are being analysed. The B2 English language requirement is separately confirmed for 26 March 2027. Until new rules take effect, the current 5-year ILR pathway remains in force.
Does earned settlement affect people who already have ILR?
No. Indefinite Leave to Remain that has already been granted is not affected. Earned settlement applies prospectively to those who have not yet been granted settlement. EU Settlement Scheme grants and Windrush Scheme grants are also out of scope.
Can I still qualify for ILR in 5 years under earned settlement?
Yes, but only if you earn above £50,270 in taxable income for the 3 years immediately before your application, or work in a qualifying public service role (such as teaching or NHS healthcare at RQF Level 6 or above) for at least 5 years. These factors earn a 5-year reduction from the 10-year baseline, bringing the qualifying period back to 5 years. Earning above £125,140 for 3 years earns a 7-year reduction, reducing the period to 3 years.
What English level is required for earned settlement?
The minimum English language requirement rises from B1 (current ILR standard) to B2 on the Common European Framework. Reaching C1 proficiency earns a 1-year reduction in your qualifying period. The B2 requirement is confirmed to take effect from 26 March 2027 via a separate Statement of Changes.
Related Terms
- Indefinite Leave to Remain (ILR)
- Continuous Residence
- Leave to Remain
- Naturalisation
- Points-Based Immigration System
- Salary Sacrifice
- RQF Level
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