Is Earned Settlement Any Closer? Latest Updates Released and Home Affairs Committee Report Published

Is Earned Settlement any closer?

The two big questions on everyone’s mind still remain unanswered: when will Earned Settlement commence, and will it be retrospective? The Government’s November 2025 consultation on Earned Settlement closed on 12 February 2026, and we are awaiting its response to its proposals which were originally outlined in the May 2025 White Paper. Nevertheless, the Home Secretary recently gave a speech at the Institute for Public Policy Research strongly indicating that for public finances and government expenditure reasons these changes will be applied retrospectively. Some good news, however, is that various media outlets, including the Times newspaper, are suggesting it will now be the Autumn (not April 2026) before the new rules commence, giving comfort to more people who will be able to apply for settlement before the changes are applied.

The Home Affairs Committee is a cross-party committee of MPs responsible for scrutinising the work of the Home Office, on 13 March they published a report into the proposed reforms. The findings of the report have been critical of the lack of a clear timeline and the unintended consequences that remain unclear. They recommend that the Home Office should take time to get the implementation period correct rather than rushing through changes. The 77-page report provides the Committee’s views on the proposed changes in order to try and inform Government policy, particular focus was on; fairer treatment for medium-skilled workers (RQF 3-5), income thresholds for dependent spouses should be considered at a family household level, children and young people should be protected, and transitional arrangements need to be considered. The Committee has set a deadline of 13 May 2026 for the Government to respond to its report.

The proposed increase to the English language requirement for Earned Settlement has also been mentioned in the changes detailed below but delayed to 2027, again giving some comfort for Skilled Workers and their family members in the short term.

Although the latest immigration rule changes are silent on the concept of Earned Settlement, several changes will impact recruitment planning.

Key changes that will take effect from 26 March 2026

• English language requirement increases from B1 to B2 for settlement applications submitted from 26 March 2027, so essentially this is deferred for a year. This may give us a further clue that Earned Settlement will also be delayed as this is one of the key proposals for Earned Settlement.
• Skilled Worker visa holders’ required salary must be met in each pay period (for decisions made on or after 8 April 2026). The Home Office can assess compliance per pay period and not across an annual total. For example, if a person is paid monthly the Home Office can look at a 3-month period in isolation to check compliance.
• Applicants with a suspended sentence of 12 months or more face mandatory refusal and will also be liable to deportation in some cases, whereas previously this was just for actual sentences served. This seems harsh as usually a suspended sentence is imposed for lesser crimes.
• Businesses can now sponsor Global Business Mobility – Secondment Workers after just six months of qualifying overseas employment (down from 12 months).
• Visa Brake introduction on Student visa applications (this does not include child student visas) for nationals of Afghanistan, Cameroon, Myanmar and Sudan, and on Skilled Worker visa applications for Afghan nationals.
• Asylum seekers’ right to seek work after 12 months will now be limited only to roles meeting the higher skill level RQF 6, which is degree level roles.

Another key change to be aware of happening later in the year is the introduction of a new pathway for the design industry under the Global Talent visa category, which will take effect from 1 July 2026. More details to follow.

Alongside the 5 March 2026 Statement of Changes, the Home Office updated its sponsor policy guidance (namely, it has refreshed parts one to three, Appendix D and introduced a brand-new glossary).

Key sponsor guidance updates (effective 6 March 2026)

• Businesses must ensure they provide sponsored workers with information on their UK employment law rights and retain evidence they have done this. This includes but is not limited to advising workers on: (1) their entitlement to National Minimum Wage (2) compliance with the Working Time Regulations (3) pension auto-enrolment and opt-outs (4) entitlement to statutory leave and pay (5) health and safety (6) trade union membership, participation in union activities and the rights of trade union representatives (7) duties of the employer under the Equality Act (8) how to raise grievances. Sponsors will be required to show they have HR systems or processes in place to demonstrate they have provided this information to all employees or workers they sponsor and be able to provide clear records of this. For example, copies of any written information provided to workers, contract of employment, employee handbook, onboarding inductions, training videos or awareness courses, etc. There was already a requirement to provide standard particulars of employment, but this change reinforces the point that being a sponsor requires you to comply with much wider employment laws. This update further aligns immigration and employment law, promoting added scrutiny of sponsored roles.
• Sponsors must read, remain aware of, and stay up to date with all parts of the sponsor guidance. The guidance is hundreds of pages long, so this seems like a particularly onerous requirement for HR teams already busy with employee welfare on a wider scale.
• The phrase “Genuine vacancy” has been replaced with “eligible role” (defined in the new immigration glossary). The role must exist at the time the Certificate of Sponsorship (CoS) is assigned and requires the worker to accurately perform the specific duties and hours set out on that CoS. It must also be compliant and meet the minimum skill level and salary requirements of the relevant route (including National Minimum Wage and Working Time Regulations). In addition, a stricter test will be applied in practice on whether the role is appropriate and genuinely needed for your business based on your business model, plans, scale, headcount, and revenue. It is now even more important to draft job descriptions accurately and map these correctly to the most appropriate occupation code.
• It has been made clear that the requirement to check a sponsored worker’s right to work applies even if the worker is not a direct employee of the sponsor i.e. contingent workers (i.e. freelancers, independent contractors, consultants, temp agency employees, gig workers) etc.

Practical Considerations for Employers

In light of these developments, sponsors should conduct a full audit of its entire sponsored workforce to identify, correct and if required, self-report any issues before receiving a visit from a Home Office compliance officer, which could be followed by a licence revocation. They should focus on:

• Auditing internal payroll practices to ensure ongoing salary compliance occurs throughout the year for sponsored workers.
• Ensuring job descriptions and contracts of employment accurately reflect the day-to-day tasks and responsibilities the role requires, and these are consistent with what is detailed in the Certificate of Sponsorship.
• Continuing to identify sponsored workers approaching the five-year mark for settlement as more individuals may be able to apply under the current rules before Autumn 2026.
• Refreshing internal sponsorship policies and compliance training for HR staff to keep them up to date with the new guidance.
• Reviewing current employment practices for sponsored workers to ensure they are provided with adequate information on their employment rights and implement necessary HR systems or processes to be able to document this.

How We Can Help  

This summary highlights the most significant recent immigration changes. Our Immigration, Employment and Pensions teamwork together to advise employers across a wide range of sectors, offering integrated support on workplace law issues and welfare of workers. This includes helping organisations understand their compliance obligations, adapt their recruitment practices, and plan strategically in light of latest policy changes.

If you would like to discuss how these changes documented above may affect your organisation, please contact our dedicated Immigration team. We would be happy to provide tailored advice and support.

Anjola Odusola

Anjola Odusola is a solicitor in our immigration team, based in our London office. She has over five years of experience in business immigration. Anjola has a proven track record of advising multinational corporations on ongoing compliance, sponsor license management, and complex visa applications, including Skilled Worker, Global Business Mobility and Indefinite Leave to Remain (ILR). She works closely with clients to navigate the UK’s evolving immigration landscape, ensuring they remain compliant while enabling them to attract and retain the best global talent.

Anjola is a dual qualified lawyer in the UK and Nigeria. 

Contact her on aodusola@doyleclayton.co.uk