Earned settlement – What should employers be doing to support their visa holders?

Background

The Government clearly indicated in its May 2025 Immigration White Paper that it would be introducing significant reforms to how people settle in the UK. The term “earned settlement” is a new concept that suggests individuals wishing to settle in the UK should demonstrate a sustained commitment through work and community involvement rather than earning settlement rights after a fixed time period.

Obtaining settlement (also known as Indefinite Leave to Remain and Permanent Residence) is often a key consideration for visa holders and their employers. Currently, visa holders are typically able to qualify for settlement after five years’ continuous residence in an eligible visa route. Earned settlement is a wholesale change to the rules and will increase the baseline time frame from five to 10 years. If you are a high earner or contribute to society then you may still obtain settlement at five or even three years. If you are in a lower skilled role or claim benefits you could have to wait for 15 years or more. We have outlined the different combinations and how adjustments can be made in the table below.

Earned settlement proposal

The new baseline rule will require 10 years’ continuous residence plus the following minimum standards must all be met:

• no criminal convictions, no money owing to the NHS, no tax debts or any other money owning to the Government;
• spoken English to Level B2 higher intermediate (increased from B1); and
• annual earnings above £12,570 while paying tax and National Insurance (NI).

If the minimum standards are met – it is still possible to reduce the 10 year period by using only one of the below combinations:

3 years

Top rate taxpayers who have earned a taxable income of at least £125,140 for three years immediately prior to application.

Global Talent visa holders and Innovator Founder visa holders.

5 years

Top rate taxpayers who have earned a taxable income of at least £50,270 for three years immediately prior to application.

Those working as doctors, nurses, or teachers.

5-7 years

Contributions to society, for example meaningfully volunteering in the community.

9 years

People who speak English to university degree level (C1) could get a 1-year discount.

For some visa holders the period of time they will need to wait will be much longer than the 10 year period if any of the below circumstances apply:

15 years

People who have received public funds/benefits for less than 12 months

Roles sponsored at RQF Level 3-5

20 years

People who have received public funds/benefits for more than 12 months

30 years

People who have entered the UK illegally

People who have overstayed a visa for six months or more

Frequently Asked Questions (FAQ)

Understandably we have been receiving a vast number of questions on this topic and we have compiled the most common below in a handy FAQ.

When will the rules on settlement change?

This is all still under consultation until 12 February 2026. We strongly encourage you to respond here. However, the Home Office is pushing ahead with this strongly and it could come into effect as early as April 2026.

Will the changes be retrospective and affect visa holders already in the UK on a pathway to settlement?

This is looking likely, but the consultation leaves slightly open the question of whether the new rules will apply to individuals already part-way through their five-year route. The Home Secretary has stated: “these changes apply to everyone in the country today, who has not yet received indefinite leave to remain [settlement]. Though we are seeking views on whether there should be some transitional arrangements available”. Transitional arrangements may therefore be provided, but it is not clear what they will look like.

Will the new rules apply to all visa routes?

No, some routes will not be affected. The following will continue on the 5 year route:

• EU Settlement Scheme (EUSS)
• British National Overseas (BNO)
• Family members of British Citizens

Are the minimum standards flexible, is there a chance I might never be granted settlement if I do not meet these?

The minimum standards must be met. These include having a clean criminal record, speaking English to A Level standard, making "sustained" NI, and having no debt in the country. The proposals suggest that there will be no flexibility on these.

What about my spouse who is not working, do they have to have made NI contributions?

Everyone will have to make a minimum level of NI contribution so dependent spouses will have to work, or they'll never qualify for settlement. The situation is not clear, but it seems likely that some spouses will need to wait longer than their main applicant family member for settlement.

If I do qualify for settlement under these new rules, will I still have access to public funds/benefits?

Unfortunately, not. Benefits under the new rules are reserved for those who have full British citizenship. This is a big change and especially controversial in relation to access to childcare help.

I already hold settlement. Will these changes affect me?

The good news is, no, if you already hold settlement the new rules will not apply to you, and you will continue to have access to public funds as and when required.

What should employers be doing now?

• Undertake an analysis of all your sponsored workers who are close to five years’ residence who could potentially apply for settlement before the new rules take place.
• Budget for increased costs for those visa holders that will need to be sponsored for up to ten years. This could potentially double your costs and for your employees below RQF skill level 3 this could triple your costs.
• Audit salary bandings to review if the £50,270 salary can be considered for sponsored workers to help them qualify at five years under this deduction option.
• Reassure and communicate the changes to your affected employees via town hall meetings or well drafted internal comms.
• Consider responding to the consultation.