Home Secretary Shabana Mahmood announced revised rules on earned settlement to the House of Commons on 2 November and the Home Office published A Fairer Pathway to Settlement – Government Response to the Consultation on the following day. The all-important finer detail in the form of a statement of changes to the Immigration Rules is expected shortly but the direction of travel is clear – the path to settlement for many sponsored workers will increase from 5 to 10 years.

What we know so far

  • Although the default qualifying period will be 10 years (including for those in occupations below RQF Level 6), there will be notable exceptions:
    • those earning at least £125,141 for three years will be able to apply to settle within 3 years
    • those earning at least £50,271 for five years and some public sector workers (including doctors, nurses and teachers) will be able to apply to settle after 5 years
    • care workers who entered or switched into a sponsored route before publication of the Immigration White Paper in May 2025, have met their visa conditions and earn at least £25,000 a year may apply to settle after 5 years
  • There are no transitional provisions for individuals already in the UK when the new rules come into force, other than for certain care workers and workers in healthcare and education occupations.
  • All applicants seeking settlement will need to meet minimum mandatory requirements which cannot be offset by higher earnings, public service or other positive contributions:
    • good character and suitability (including a clean criminal record)
    • no outstanding Government debt
    • English language ability at B2 level (equivalent to A-Level English as a foreign language)
    • passed the Life in the UK test
    • demonstrate a minimum level of economic contribution of at least £12,571 per person a year for at least three years (eligible couples will be able to combine their earnings to meet a minimum household income of £25,142 and there will be exemptions for children under 18, child dependants aged 18 to 24, people aged 65 or more, and those unable to meet the requirement because of a physical or mental condition).
  • Those who have breached immigration rules (including accessing public funds when prohibited from doing so) will only be able to settle in the UK after at least 20 years.
  • Volunteering and similar community contributions will not lead to a reduction in settlement qualifying period.
  • The long residence route which has previously led to settlement after 10 years of continuous lawful residence in the UK on temporary routes such as Student and Graduate visas will close.

What can employers do now?

  • We don’t yet know when the new earned settlement regime will come into force, nor does the Home Office consultation response document provide all the necessary detail. A statement of changes to the Immigration Rules (which is yet to be published) is usually laid before Parliament at least 21 days before the changes take effect but this is merely a convention which can be overridden in certain circumstances, including an anticipated surge in applications from those trying to beat a deadline. Employers with affected and concerned employees should explain that they will provide support as and when relevant and detailed guidance is published.
  • In the meantime, eligible sponsored employees can still apply under the current rules for indefinite leave to remain and should consider doing so as soon as possible, even if their higher earnings might lead to earned settlement under the new rules after 5 years or less. That is because an application under the new earned settlement regime is likely to be more complex, document-intensive and time-consuming than under the current rules.
  • For employees in an eligible visa route who are unlikely to be able to apply under the current rules for indefinite leave to remain, employers can begin to map them into cohorts according to their earnings to determine whether they will qualify after 3, 5 or 10 years under the new earned settlement regime. In due course, once the new Immigration Rules are published, affected employees will need clear and detailed guidance on how the new income requirements will apply to them and their dependant family members (particularly if they are the main breadwinner).
  • Where it appears that sponsored employees will need 10 rather than 5 years to qualify for earned settlement, employers will need to factor in the additional costs of sponsorship for a longer period.

We will continue to publish updates as further details are released.

If you need support or have any questions relating to UK Business Immigration matters, please contact your usual Squire Patton Boggs business immigration team member or Annabel Mace, partner and Head of UK Immigration