UK Earned Settlement Reforms 2026: New ILR Rules, Who Is Affected and What Employers Should Do

The UK Government has confirmed revised plans for major changes to Indefinite Leave to Remain (ILR), introducing an earned settlement system that would increase the standard qualifying period from five to ten years. Announced on 2 November 2026, the reforms could affect people already living and working in the UK, not just future arrivals.

The updated framework also contains significant concessions: higher earners could qualify after three or five years; eligible healthcare and education professionals would retain a five-year pathway; certain existing care workers would receive transitional protection; and the proposed 15-year route for lower-skilled occupations has been dropped.

IMPORTANT: These changes are not yet law. Current Immigration Rules remain in force until the reforms are formally introduced. Detailed rules, implementation dates and guidance are still awaited.

At a glance: What are the proposed earned settlement rules?

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Will the new ten-year ILR rule apply to people already in the UK?

Yes. The Government intends the new settlement rules to apply to people already in the UK who have not obtained ILR when the reforms take effect. There is no general guarantee that someone who entered on a five-year route will retain that qualifying period.

For example, someone who began Skilled Worker residence in 2023 and expected ILR in 2028 could instead face a ten-year period, potentially moving eligibility to 2033, unless an accelerated or protected pathway applies.

The final transitional provisions will be decisive.

Until the rules change, applicants who qualify for ILR under the current requirements can continue to apply. Those approaching eligibility should review their position and timing.

Can Skilled Workers still get ILR after five years?

Yes. The proposed accelerated pathway would require earnings of at least £50,271 annually in three of the five years immediately preceding settlement, as well as all other requirements. The threshold need not be met in every one of those five years.

How the best-three-of-five-years test could work

Illustration: Year 1 £42,000; Year 2 £46,000; Year 3 £51,000; Year 4 £53,000; Year 5 £55,000.

In this example, three years exceed £50,271, potentially satisfying the accelerated earnings-history test.

This flexibility could permit ordinary salary progression rather than an immediate large pay increase. However, the final rules must clarify how qualifying earnings are calculated, including pension contributions, salary sacrifice, variable pay and reduced earnings.

The settlement threshold is distinct from the salary requirements for sponsoring or extending a Skilled Worker visa.

Could high earners qualify after three years?

The Government proposes a three-year pathway for those earning at least £125,141 in three of the four years preceding settlement.

A separate accelerated pathway is also envisaged for certain highly talented individuals, subject to further detail.

Which healthcare and education workers retain five-year settlement?

Eligible healthcare and education professionals are expected to retain a five-year pathway. The specified occupations broadly correspond to relevant national-pay-scale occupations in Table 3 of Appendix Skilled Occupations.

They include doctors, nurses, physiotherapists, speech and language therapists, occupational therapists, other allied health professionals and eligible teaching professionals.

This is important for employers sponsoring clinical professionals whose salaries may fall below £50,271. However, the policy refers to qualifying public-sector healthcare and education roles and national pay-scale arrangements.

The final rules must clarify how the provision applies to privately employed professionals.

Care workers: Who qualifies for transitional protection?

The proposed five-year protection is limited to certain care workers and senior care workers who entered or switched into the relevant Health and Care Worker route before publication of the Immigration White Paper in May 2025.

Conditions include genuine sponsored employment, compliance with immigration conditions, proposed earnings of at least £25,000 and other settlement requirements.

Workers who entered or switched into the care route after that cut-off, for example, from a Graduate visa in September 2025, would not benefit from this specific protection and would generally fall under the ten-year pathway unless another provision applies.

The Government also envisages a further five-year Health and Care visa opportunity for certain protected workers who do not meet the settlement conditions after five years. Separate transitional provisions cover certain other healthcare and education workers below RQF Level 6.

The proposed 15-year pathway for lower-skilled occupations has been dropped

The Government will not proceed with the earlier proposed 15-year settlement period for occupations below RQF Level 6. Affected workers would generally fall under the standard ten-year pathway, subject to accelerated or transitional provisions.

This is an improvement on the initial proposals, but does not preserve five-year settlement for everyone.

What happens to spouses, partners and other family members?

Combined household earnings

Eligible couples could combine earnings to meet a proposed household economic contribution threshold of £25,142.

For example, £18,000 plus £12,000 would exceed that household threshold, subject to the applicable assessment period and evidence.

This is separate from the £50,271 accelerated-settlement threshold.

Children and adult dependants

Eligible children under 18 may continue to settle with parents.

Young adult dependants aged 18–24 may qualify alongside their family where the relevant dependant status continues.

Those aged 25 or over when their family qualifies would generally need to qualify independently or hold permission in their own right.

Extended settlement timelines could therefore have important consequences for families.

Who will keep existing five-year settlement pathways?

The Government intends to preserve pathways for eligible spouses and partners of British citizens; eligible parents and children of British citizens; Commonwealth citizens on the UK Ancestry route; Hong Kong BN(O) visa holders; and certain Armed Forces members and family members.

Preserving the qualifying period does not necessarily exempt applicants from every new mandatory requirement.

People who already have ILR or settled status will not lose it because of these reforms.

Is the ten-year Long Residence route being abolished?

Yes. The Government intends to close the existing ten-year Long Residence route, which can currently allow qualifying lawful residence across different immigration categories. This could particularly affect those who spent years on Student or Graduate visas before switching to Skilled Worker sponsorship.

For example, someone who arrived as a Student in September 2018, later held Graduate permission and switched to Skilled Worker in 2025 may have expected Long Residence ILR in September 2028.

If the route closes before eligibility, that pathway may no longer be available.

No general transitional protection has been announced for everyone accumulating ten years' lawful residence.

What additional requirements will apply?

The framework proposes B2 English (subject to exemptions), the Life in the UK Test, sustained economic contribution, no outstanding specified Government debt, and stricter character and immigration compliance conditions.

For the standard ten-year pathway, the proposed economic contribution test generally requires annual earnings of at least £12,571 in five of the seven years immediately before applying, subject to exemptions.

Certain immigration breaches could trigger substantially longer qualifying periods. Final rules will determine evidence and exceptions.

When will the new earned settlement rules start?

No implementation date has been formally confirmed. Detailed Immigration Rules are expected, with implementation potentially beginning in late 2026 or early 2027.

Until the relevant Statement of Changes takes effect, the existing settlement rules continue to apply.

What should UK employers sponsoring overseas workers do now?

1. Identify employees whose settlement dates could change

Review sponsored workers expecting ILR in the next one to three years.

Examine immigration histories, occupation codes, salaries and potential accelerated or protected pathways.

Avoid assuming that every worker will need ten years.

2. Reassess the financial cost of sponsorship

An extension from five to ten years could mean additional visa extensions, Certificates of Sponsorship, Immigration Skills Charge and Immigration Health Surcharge payments where applicable, dependant costs and professional fees.

Budget for possible Home Office fee increases.

3. Review salary progression

The best-three-of-five-years proposal may allow employers to plan genuine salary progression through normal annual reviews.

Do not make large pay commitments based solely on proposals; salary increases must be genuine, commercially justified and accurately recorded.

4. Consider recruitment and retention

Longer sponsorship periods may affect relocation packages, immigration funding policies, recruitment conversations, retention and employees' longer-term decisions about remaining in the UK.

5. Communicate clearly with employees

Explain what has been announced, what is not yet law, who may qualify for exceptions and what remains unknown.

Avoid definitive new settlement dates.

Tailored communications and employee town halls can reduce speculation and misinformation.

How Immtell can help employers prepare

Immtell advises UK employers on sponsor compliance, Skilled Worker sponsorship, settlement planning and immigration strategy. Managing Director Gavin Webster has 23 years' UK immigration experience, including 13 years at the Home Office and senior roles at EY, PwC and Vialto Partners.

Ewen McKenzie, Head of Sponsor Compliance, is a former Home Office Regional Compliance Manager with substantial in-house experience managing immigration compliance for a major UK healthcare employer. Together, they combine immigration casework expertise with practical sponsor compliance knowledge.

We can help with sponsored-workforce reviews, individual ILR eligibility assessments, future sponsorship cost planning, salary and extension implications, tailored employee communications, and online or in-person town halls.

Concerned about how earned settlement could affect your workforce? BOOK A DISCOVERY CALL

Frequently asked questions

Has the five-year ILR route been abolished?

Not entirely. Ten years is proposed as the standard, but certain higher earners, eligible healthcare and education professionals, protected care workers and British-connected categories could still qualify after five years; some could qualify after three.

Will the ten-year rule apply to existing Skilled Workers?

The Government intends it to apply to people already in the UK who have not obtained settlement when the rules change, subject to the final provisions and exceptions.

Do I need to earn £50,271 for all five years?

No. The proposed test is at least £50,271 in three of the preceding five years, subject to the final earnings definition and other requirements.

Will nurses, physiotherapists and speech and language therapists still qualify after five years?

Eligible specified healthcare occupations are included in the proposed five-year arrangements. The final rules will clarify occupational and employment conditions.

Will care workers have to wait ten years?

Some workers who entered or switched into the relevant route before the May 2025 White Paper may retain five years, subject to conditions. Later entrants generally would not receive that specific protection.

Can spouses combine earnings?

The Government proposes a £25,142 household contribution threshold for eligible couples, separate from the accelerated five-year earnings test.

Will Student or Graduate visa time count towards settlement?

Such time may currently be relevant under Long Residence, but the proposed closure of that route would remove this general pathway. Final transitional rules remain important.

Should I switch from Skilled Worker to Global Talent?

That depends on endorsement eligibility, immigration history and whether switching provides a genuine settlement advantage. Assess the consequences before applying.

When will the new ILR rules start?

No formal implementation date has been confirmed. Current Immigration Rules continue until amended.

About the author and sources

Gavin Webster is Managing Director and Founder of Immtell, a UK immigration consultancy. He has 23 years' experience, including 13 years with the Home Office and senior advisory roles at EY, PwC and Vialto Partners.

Official sources:

https://www.gov.uk/government/consultations/earned-settlement  

https://www.gov.uk/government/news/home-secretary-unveils-new-rules-for-migrants-settling-in-the-uk

This article reflects announced policy as at 3 November 2026. The reforms are not yet in force and may be clarified or amended through Immigration Rules and guidance.