ILR Earned Settlement Changes 2026: Complete Guide

What is Earned Settlement?

Earned Settlement is the UK government's proposed overhaul of the Indefinite Leave to Remain (ILR) system. Under the current rules, most work visa holders - including those on Skilled Worker, Health and Care Worker, and Global Talent visas - qualify for permanent settlement after completing a flat 5-year qualifying period of continuous residence in the UK. The proposed reforms would replace this one-size-fits-all approach with a higher default of 10 years, then adjust it up or down according to your circumstances.

The core idea behind Earned Settlement is that migrants who contribute more to the UK economy and society, chiefly through higher earnings and work in essential public services, should be able to settle sooner, while those who rely on public funds or breach immigration rules would wait longer. In practice, most people would face a longer wait than the current 5 years, with a smaller group of high contributors settling faster.

The policy was announced as part of the government's broader immigration reform agenda, which aims to reduce net migration while retaining the most skilled and integrated workers. The government has described the reforms as a shift from a system where settlement is "automatic after a fixed period" to one where it is "earned through contribution."

It is important to understand that, as of July 2026, Earned Settlement remains a proposal. The public consultation closed on 12 February 2026 with more than 200,000 responses, but the detailed Immigration Rules have not yet been laid in Parliament, and the final point thresholds, qualifying period lengths, and transitional arrangements may change before implementation. This guide is based on the published policy statements and consultation documents available at the time of writing. We will update it as new details emerge.

Key changes from the current system

The Earned Settlement proposals represent the most significant change to the UK settlement system in over a decade. Here are the fundamental differences between the current system and what is proposed.

A higher default, then adjusted up or down

The most impactful change is that the default qualifying period for indefinite leave to remain would rise from a fixed 5 years to a new baseline of 10 years for most routes. From that 10-year starting point, your period is then reduced or extended based on your circumstances — so most people would wait longer than today, while a smaller group of high contributors could settle sooner.

Time adjustments, not a points score

Contrary to how it is sometimes described, the consultation does not propose a points system. Instead it uses time adjustments: specific circumstances take a set number of years off the 10-year baseline (for example, higher earnings or work in a public-service role), while others add years (for example, having claimed public funds). Only the single largest reduction and the single largest increase apply, and the two are then combined to give your qualifying period.

A shift from entitlement to conditions

Under the current rules, the requirements are relatively straightforward: complete 5 years, stay within absence limits, pass the Life in the UK test, and meet the salary threshold at the time of application. The Earned Settlement model reframes settlement as something earned through sustained contribution and good conduct, with the length of the wait tied to your income, occupation, immigration history, and use of public funds. The precise thresholds and adjustments remain subject to consultation and may change before implementation.

Potential loss of automatic entitlement

Under the current system, indefinite leave to remain is essentially an entitlement once you meet the criteria. The Earned Settlement model shifts the framing: settlement becomes something you earn through sustained contribution. While the practical difference may be subtle for high-scoring applicants, for those on lower salaries or with fewer qualifying factors, it represents a fundamental change in expectations.

How your qualifying period would be adjusted

Every applicant starts from the 10-year baseline. From there, the proposals apply time adjustments in two directions: reductions that bring settlement forward, and increases that push it back. Only the single largest reduction and the single largest increase apply — you cannot stack several reductions together — and the two results are then combined.

Reductions: time off the 10-year baseline

You can benefit from only one of these, whichever gives the largest reduction:

Because only the largest reduction counts, these do not add together. Someone earning £50,270 who also holds C1 English still receives a single −5 year reduction, not −6. In practice the −1 year for C1 English only makes a difference for a person who has no larger reduction to claim — a point critics have raised, since it means stronger English barely affects the timeline for most applicants. The £50,270 and £125,140 figures are the higher-rate and additional-rate income tax thresholds, and the consultation notes they would not automatically move if tax law changes.

The family-ties and Hong Kong BN(O) reductions are stated as not subject to consultation, meaning the government intends to keep them. Most of the other figures remain open to change.

Increases: time added to the baseline

Again, only the single largest increase applies:

Separately, a criminal record or failing the suitability requirements would be a mandatory barrier: the government's stated expectation is that you should not be able to settle with a criminal record at all, and these requirements cannot be traded off against contribution.

Reductions and increases combine

Unlike the adjustments within each table, a reduction and an increase are applied together. The consultation gives this worked example: someone who claimed public funds for under 12 months (+5 years) but holds C1 English (−1 year) has a net adjustment of +4 years, giving a 14-year qualifying period. In short: qualifying period = 10 years − your largest reduction + your largest increase.

Higher baselines for some groups

Two groups start from a longer baseline. People recognised as refugees would start from a 20-year qualifying period, and workers in roles below RQF level 6 (lower-skilled work) are covered by a separate proposal for a 15-year baseline. Both remain subject to consultation.

Worked examples: how long would you wait?

Because the model subtracts your largest reduction and adds your largest increase to the 10-year baseline, the same starting point can produce very different outcomes. Here are illustrative examples using the proposed figures (all subject to consultation).

What this means in practice

Scenario A: Senior software engineer. Earns £90,000, so meets the £50,270 higher-rate threshold. Largest reduction −5 years, no increases. Qualifying period: 5 years — the same as today.

Scenario B: NHS nurse. Earns around £37,000 (below £50,270) but has spent 5 years in a specified public-service occupation on national pay scales. Largest reduction −5 years, no increases. Qualifying period: 5 years. This depends on the role meeting the public-service definition; a comparable worker who does not, and earns below £50,270, would get no reduction and face the full 10 years.

Scenario C: Care worker. Earns around £24,000, below the income thresholds, and care roles are generally below RQF level 6 — so they may fall under the separate 15-year baseline for lower-skilled work rather than qualify for the −5 year public-service reduction. Without a qualifying reduction, the wait would be 10 years or more.

These examples highlight a central criticism of the proposals: the workers the UK relies on most heavily in health and social care are often the least able to claim a large reduction, because the biggest levers are tied to high income or narrowly defined public-service roles.

Who is affected?

The consultation states that the new model would apply broadly — to everyone in the UK who has not already been granted indefinite leave to remain — while carving out several protected groups. The exact treatment of many groups is still subject to consultation.

Work routes: within scope

Work routes are the primary target, including the Skilled Worker and Health and Care Worker visas, Senior or Specialist Worker (Global Business Mobility), and Scale-up. Global Talent and Innovator Founder holders are in scope but benefit from a −7 year reduction after 3 continuous years, so most would still settle quickly.

Family of British citizens: a −5 year reduction, not an exemption

Rather than being exempt, partners, parents and children of British citizens (and Hong Kong BN(O) holders) receive a −5 year reduction that brings them back to a 5-year qualifying period. The government has said this reduction is not subject to consultation. Spouse and partner routes under Appendix FM are therefore expected to end up at roughly the current 5-year timeline, but via the reduction mechanism rather than a separate carve-out.

Protected and out of scope

• Existing ILR holders: the government has said it will never remove settled status from those already granted it.
• EU Settlement Scheme (EUSS): out of scope — it has its own framework under the Withdrawal Agreement.
• Windrush: out of scope.
• Children in care and care leavers: out of scope, with a separate pathway to be developed.

Higher baselines and open questions

Recognised refugees would start from a 20-year baseline, and a separate proposal sets a 15-year baseline for workers in roles below RQF level 6. The treatment of the armed forces, dependants' separate qualifying periods, vulnerable groups, and age-based exemptions for children all remain subject to consultation. How Earned Settlement interacts with the 10-year Long Residence route has not been confirmed.

Transitional arrangements

One of the most critical questions for people already in the UK on work visas is whether they will be subject to the new rules or whether they will be "grandfathered" under the current system.

What the government has said

This has been one of the most contentious parts of the proposal. The statement says the new model would apply to everyone who has not yet been granted indefinite leave to remain — which means people already part-way through their current qualifying period could be affected, not just new arrivals. Existing ILR holders are explicitly protected: the government has said it would never remove settled status from those already granted it. Exactly how people mid-route are handled is subject to consultation, and the strength of the response (more than 200,000 submissions) reflects how much concern this has caused.

What is not yet confirmed

The precise details of transitional arrangements have not been published. Key unanswered questions include:

• Cut-off date: What date determines whether you fall under old or new rules? Is it the date you were first granted your visa, the date you entered the UK, or the date the new rules come into force?
• Visa extensions: If you extend your visa after the new rules come into force, do you move to the new system? Or do you retain old rules because your original visa was granted before the change?
• Visa switches: If you switch from one work route to another (e.g., from Health and Care Worker to Skilled Worker) after implementation, do you move to the new system?
• Opt-in: Could applicants choose to be assessed under the new system if they score highly and it benefits them?

The safest approach

Until transitional arrangements are formally confirmed, the safest approach is to assume that applying for indefinite leave to remain under the current rules, if you are eligible or approaching eligibility, is preferable. If you are within 12 months of completing your 5-year qualifying period, there is a strong argument for ensuring you apply as soon as possible rather than waiting.

Who is protected under transitional arrangements

The question of who gets protected under transitional arrangements is the single most important practical issue for people already living and working in the UK on a qualifying visa. Here is what is known and what remains uncertain, based on the information available as of July 2026.

People most likely to be protected

People who entered the UK before the policy commencement date are most likely to be protected under current 5-year indefinite leave to remain rules. The government has repeatedly stated that transitional protections will be put in place, and the general framing suggests that anyone who is already partway through a qualifying period before the new rules come into force should not have their timeline arbitrarily extended. However, the precise cut-off date has not yet been confirmed in legislation.

The most commonly discussed scenarios for protection are:

• Visa granted before commencement date: If your Skilled Worker, Health and Care Worker, or other qualifying visa was granted before the date on which the Earned Settlement rules formally come into force, you are likely to have the option of being assessed under the current 5-year rules for your indefinite leave to remain application, provided your visa permission has not been extended or varied under the new rules.
• Qualifying period already underway: If you have already begun accruing time toward your indefinite leave to remain qualifying period before the commencement date, transitional arrangements are expected to allow you to complete that qualifying period under the rules in force when you started.
• No intervening visa changes: Protection under transitional arrangements is most secure for people who have not changed their immigration status or switched routes after the new rules came into force. Changing employers, extending a visa, or switching routes under the new system may mean being assessed under the new Earned Settlement thresholds.

The cut-off date: still to be confirmed

The exact date that determines whether you fall under old or new rules has not yet been published. This is one of the most critical pieces of information still outstanding. The cut-off is likely to be the date on which the new Immigration Rules are formally laid in Parliament (the commencement date), but it could also be defined by reference to the date your current visa was granted or the date you first entered the UK on a qualifying visa. Until the formal rules are published, applicants should not assume they know which date applies to them.

The safest strategy: apply early

Given the uncertainty about transitional arrangements and cut-off dates, the safest approach for anyone who is within reach of their current 5-year indefinite leave to remain eligibility date is to apply as soon as they are eligible. You can apply up to 28 days before the 5-year mark. Getting your indefinite leave to remain application submitted and decided under the current rules eliminates any risk from transitional arrangements entirely. Use the ILR Eligibility Calculator to find your earliest possible application date.

People who are mid-qualifying-period and several years away from indefinite leave to remain eligibility have more uncertainty to navigate. For them, the best approach is to continue strengthening the factors that would reduce their qualifying period — chiefly sustained income above the £50,270 threshold and, where relevant, public-service work — while monitoring official announcements closely. Applying early under current rules is not available to someone who is only two or three years into their qualifying period, so they must plan for both scenarios.

What happens if you are not protected

If you fall outside transitional protections, either because your commencement date has passed, because you changed your visa after the new rules came into force, or because the transitional arrangements are defined more narrowly than expected, you would be assessed under the Earned Settlement model. This means your qualifying period for indefinite leave to remain could be considerably longer than the current 5 years — up to the full 10-year baseline, or more if increases apply — depending on your circumstances. The longer qualifying period also means additional years of paying the Immigration Health Surcharge and potentially more visa extension fees.

When do changes take effect?

The Earned Settlement proposals have been announced as policy intent, but they have not yet been translated into formal Immigration Rules. Here is the timeline of key events so far and what to expect next.

Timeline of announcements

What needs to happen before implementation

Before Earned Settlement can take effect, several steps are required:

• The government must publish a formal consultation response addressing feedback from stakeholders, employers, and the Migration Advisory Committee.
• Draft changes to the Immigration Rules must be prepared and laid before Parliament.
• Parliament must debate and approve the rule changes (Immigration Rule changes are typically approved through a negative resolution procedure, meaning they pass unless Parliament objects).
• UKVI operational systems must be updated to handle the new adjustment calculations and variable qualifying periods.
• Transitional arrangements must be defined and communicated.

Given the complexity of these steps, most immigration commentators expect implementation no earlier than late 2026 or 2027. However, the government has expressed a desire to move quickly on immigration reform, so earlier implementation is possible.

Earned settlement timeline: when will it come into effect?

The earned settlement proposals were first announced in 2024 as part of the UK government's broader immigration reform agenda. Since then, the policy has advanced through several stages, but as of July 2026 the main reform has not yet been enacted into law. Here is the most complete picture of where things stand and what to watch for.

Consultation closed

The government opened a formal consultation on the earned settlement proposals on 20 November 2025. It closed on 12 February 2026, drawing more than 200,000 responses. The consultation sought views from employers, migrants, advocacy groups, sector bodies, and the Migration Advisory Committee (MAC). The responses raised significant concerns, particularly about the impact on health and social care workers, and about the fairness of a system that ties settlement speed primarily to salary. As of July 2026 the government has not yet published a formal consultation response, and is expected to do so before laying the main earned settlement Immigration Rules.

One measure laid; main rules still pending

As of July 2026, no date has been set for Parliamentary debate on the full earned settlement model. Changes to the Immigration Rules do not always require primary legislation (an Act of Parliament) and can be made by laying a statement of changes before Parliament under the negative resolution procedure. One related measure has already been laid this way: a statement of changes on 5 March 2026 confirmed that the English language level required for settlement on several routes will rise from B1 to B2 from March 2027. However, the wider variable-qualifying- period model has not yet been laid, and the government must still publish its consultation response and detailed rules before it can be formally implemented.

Proposed implementation: autumn 2026 target

Following her statement on 5 March 2026, the Home Secretary said she aims to enact the finalised earned settlement policy later in 2026, with autumn reportedly indicated. This timeline has already slipped from earlier indications. Given the complexity of the legislative and operational changes required, and the need to update UKVI processing systems to handle variable qualifying periods and adjustment calculations, implementation slipping into 2027 remains a realistic possibility.

Transitional protections are expected but not confirmed

The government has repeatedly signalled that transitional protections will be put in place for people already in the UK on qualifying visas before the new rules come into force. However, the specific terms of those protections, including the qualifying date, the conditions for protection, and what happens to people who change their visa after the commencement date, have not been confirmed in any formal document. People currently in their indefinite leave to remain qualifying period should monitor GOV.UK and the Immigration Rules closely and consider applying for indefinite leave to remain as soon as they are eligible under the current rules.

What to watch for

The following official sources will publish information about earned settlement implementation as it becomes available:

• GOV.UK Immigration Rules: gov.uk/guidance/immigration-rules is where changes to the rules are formally published. Subscribe to email alerts for this page.
• Migration Advisory Committee (MAC): The MAC publishes reports and recommendations at gov.uk/government/organisations/migration-advisory-committee. MAC reports often precede rule changes and give advance warning of what is coming.
• Parliamentary debates and Hansard: When Immigration Rule changes are laid before Parliament, they are debated and can be found in Hansard. Monitoring these debates can provide early warning of commencement dates and transitional arrangements.
• ILR Tracker updates: We will update this guide and notify registered users as new details emerge. For the latest ILR news and announcements, see our ILR news 2026 page. If you want to receive updates automatically, create a free ILR Tracker account.

How the time-adjustment model would work

The earned settlement model is a significant departure from how indefinite leave to remain is currently assessed. Rather than a single fixed period for everyone, it sets a long default and then adjusts it according to your circumstances. Here is how the mechanics are proposed to work.

Start at the baseline, then adjust

Everyone in scope begins at the 10-year baseline (20 years for recognised refugees, and a proposed 15 years for roles below RQF level 6). The Home Office would then apply the single largest reduction you qualify for and the single largest increase that applies to you, and combine the two. Your qualifying period is the result.

What the reductions reward

• Higher earnings: the largest levers are income-based — £50,270+ for −5 years, or £125,140+ for −7 years, measured over the 3 years before you apply. Higher earners pay more tax and are treated as greater contributors.
• Public-service work: five years in a specified health or education role (RQF 6+, on national pay scales) gives −5 years, recognising essential workers who may earn below the income thresholds.
• Advanced English: C1-level English gives −1 year — but only if you have no larger reduction to claim, since reductions do not stack.
• Route and family ties: three years as Global Talent or Innovator Founder gives −7 years; being the partner, parent or child of a British citizen, or holding Hong Kong BN(O) status, gives −5 years.

What the increases penalise

Time is added for reliance on public funds (+5 years if claimed for under 12 months, +10 years if longer) and for serious immigration breaches such as illegal entry or overstaying (+ up to 20 years). A criminal record or failing the suitability requirements is treated as a mandatory barrier rather than an adjustment — it cannot be offset by contribution.

There is no 5-year floor

Unlike some early summaries suggested, the proposal does not guarantee a 5-year minimum. The largest reductions (−7 years for the highest earners and for Global Talent / Innovator Founder holders) would bring the qualifying period down to as little as 3 years — shorter than today for that group. For most people, though, the effect is the opposite: a longer wait than the current fixed 5 years.

How it would be assessed

When you apply, the Home Office would establish which reductions and increases apply based on evidence such as your income over the previous 3 years (payslips, P60s, HMRC records), your occupation and its pay scale, your immigration history, any public-funds claims, and — where relevant — an English test certificate. Because the biggest reductions are measured over the 3 years before you apply, your recent earnings history rather than a single snapshot would largely determine your timeline. All of these details remain subject to consultation.

What you should do now

While the final details of Earned Settlement remain uncertain, there are concrete steps you can take now to protect your position and prepare for potential changes.

1. Apply for indefinite leave to remain as soon as you are eligible

If you are approaching the end of your 5-year qualifying period under the current rules, prioritise your indefinite leave to remain application. You can apply up to 28 days before the 5-year mark. Getting your application in before any rule changes take effect is the single most impactful thing you can do. Use the ILR Eligibility Calculator to find your earliest application date.

2. Track your absences meticulously

Whether the qualifying period is 5 years or 10 years, the 180-day absence rule in any rolling 12-month period is expected to remain in place. Longer qualifying periods mean more 12-month windows to monitor and more opportunities for accidental breaches. Start logging every trip now using the ILR Absence Calculator.

3. Consider upgrading your English to C1

A separate measure already laid will raise the minimum English requirement for settlement from B1 to B2 from March 2027, so B2 is likely to become the baseline. Under the earned settlement proposals, reaching C1 would give a −1 year reduction — though only if you have no larger reduction to claim, so its practical value is limited for higher earners and public-service workers. Even setting the reforms aside, stronger English helps with naturalisation and career progression.

4. Understand where you sit against the income thresholds

Income is the biggest lever in the proposals. The reductions are tied to the higher-rate (£50,270) and additional-rate (£125,140) income tax thresholds, measured over the 3 years before you apply — not to the Skilled Worker salary floor. Crossing £50,270 would qualify you for a −5 year reduction; reaching £125,140 would give −7. If your pay is near £50,270, sustaining earnings above that level over several years could materially shorten your qualifying period, so it is worth factoring into salary discussions with your employer.

5. Check whether your role counts as public service

Five years in a specified public-service occupation — health or education roles at RQF level 6 or above, on national pay scales — would give a −5 year reduction. If you work in the NHS, state education, or a similar setting, it is worth understanding whether your specific role is likely to qualify, as it could be as valuable as crossing the £50,270 income threshold. The precise list of qualifying occupations is still subject to consultation.

6. Monitor official announcements

The details of Earned Settlement are still evolving. Subscribe to GOV.UK email alerts for Immigration Rules changes and follow the Migration Advisory Committee's publications. We will also update this guide and notify ILR Tracker users as new details are confirmed.

7. Keep all documentation

Regardless of which rules apply when you eventually apply for indefinite leave to remain, you will need comprehensive documentation of your residence, employment, salary, and travel history. The longer the qualifying period, the more documentation you need. Keep payslips, P60s, employer letters, travel records, and qualification certificates organised and accessible. Our ILR Document Checklist can help you track what you need.

Impact on different visa routes

The proposals would affect different visa categories in different ways, depending on how easily holders can claim a large reduction. Here is an assessment of the likely impact on each major route (all subject to consultation).

Skilled Worker visa

This is the route with the widest range of outcomes. Skilled Workers span a huge salary range. Those earning £50,270+ would claim a −5 year reduction (a 5-year period), and £125,140+ earners a −7 (3 years). Those earning below £50,270 with no other qualifying reduction would face the full 10-year baseline — double today. This is where the new model would have its most visible impact. See our ILR for Skilled Workers guide for the current requirements on this route.

Health and Care Worker visa

This route is likely to be hit hardest. Care workers typically earn well below £50,270, so cannot claim an income-based reduction. Whether they benefit from the −5 year public-service reduction depends on their role meeting the definition (health or education, RQF 6+, on national pay scales) — many care roles sit below RQF 6 and could instead fall under the separate 15-year baseline for lower-skilled work. Nurses and other RQF 6+ NHS staff are more likely to qualify. This has been one of the most contentious aspects, given the UK's heavy reliance on international recruitment in health and social care.

Global Talent and Innovator Founder

Both routes benefit from a −7 year reduction after 3 continuous years, bringing the qualifying period down to as little as 3 years — faster than today. Global Talent holders are also often high earners, so would score well on income in any case. The impact on these routes is limited, or even favourable.

Scale-up visa

Scale-up workers must earn at least £36,300, below the £50,270 higher-rate threshold. Unless their earnings rise above £50,270, they would not qualify for an income-based reduction and would face the 10-year baseline, relying on public-service or other criteria if applicable.

Summary by route

Earned settlement vs current ILR rules: side-by-side comparison

The following table provides a side-by-side comparison of the key aspects of the current indefinite leave to remain system and the proposed Earned Settlement model.

The cost implications

Beyond the extended waiting time, Earned Settlement has significant financial implications. Each additional year in the qualifying period means another year of paying the Immigration Health Surcharge (currently £1,035 per year per person). A worker facing a 10-year qualifying period instead of 5 years would pay an additional £5,175 in IHS fees alone. For a family of four, the additional IHS cost over the extended period could exceed £20,000. There are also additional visa renewal fees for each extension period during the longer qualifying window.

Use our Earned Settlement Calculator to estimate your projected qualifying period, or try the ILR Reform Checker to see how the proposed changes would specifically affect your situation.

How ILR Tracker helps you navigate the changes

Whether you are applying under the current rules or preparing for Earned Settlement, ILR Tracker gives you the tools to stay on top of your journey:

• Absence tracking - Log your trips and monitor every rolling 12-month window, whether your qualifying period is 5 years or 10 years.
• Eligibility calculations - Know your exact indefinite leave to remain application date based on your visa start date and circumstances.
• Document checklist - Track the evidence you need to gather, with personalised recommendations based on your visa type.
• Financial planning - Budget for the full cost of your settlement journey, including IHS, application fees, and optional services.
• Free tools - Try our ILR Eligibility Calculator, ILR Absence Calculator, and ILR Document Checklist without creating an account.

The settlement landscape is changing, but careful planning and diligent record-keeping remain the best way to protect your path to permanent residence in the UK.

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