On 20 November 2025 the UK Government launched the Earned Settlement Consultation which will run for 12 weeks to February 2026.
In summary, most highly paid sponsored roles will remain on a five year route to settlement and some very high earners may even benefit from a faster route. But, there are some significant changes for medium paid and lower skilled role holders who may need to wait longer to settle. There are also unanswered questions around dependants and whether the changes apply to existing visa holders.
Background
In the 2025 Immigration White Paper, the government announced its intention to change the baseline residence requirements for Indefinite Leave to Remain (also known as settlement or permanent residence) from the current five years in most visa routes to 10 years. There would be a system of adjustments based on individual circumstances which would either reduce or increase the time to settlement and it would potentially apply to existing visa holders.
The change in policy is in response to government concerns about a spike in settlement applications following record numbers of visa applications in eligible routes since the more open post-2021 immigration system came into effect.
Typically, around 111,000 settlement applications are made per year and this number has been steady since 2011. However, the number of applications rose to 163,000 in Q2 2025 and are forecast to increase 400-600,000 per year by 2028.
Will this apply to existing visa holders who are already in the UK?
No decision has been made on whether the changes will apply to existing visa holders and the consultation seeks views on whether there should be transitional arrangements for those already on a pathway to settlement.
Who is not impacted
The new changes will not impact visa holders in the following categories and they will remain on the current 5 year route:
The proposed changes
The 12 week consultation was launched on 20 November 2025, and the UK Government has provided draft proposals on how the new system of adjustments will work for those visa holders in impacted routes.
Mandatory minimum requirements
Each application for settlement would have a baseline of 10 years continuous residence with the following minimum requirements:
| Pillar | Requirement | Comment |
| Suitability | The applicant must meet suitability requirements for an application, for example, not having a criminal conviction. | Existing requirement |
| Suitability | The applicant has no current litigation, NHS, tax or other government debt. | New requirement |
| Integration | The applicant must be able to evidence that they meet English language requirements, which will be at B2 level under the Common European Framework of Reference for Languages. | The level of English required has increased from B1 (lower intermediate) to B2 (higher intermediate)—this is would be enough English to hold a flowing conversation, though not fluent. |
| Integration | The applicant must be able to evidence that they have passed the Life in the UK test. | Existing requirement, but the government is reviewing its value. |
| Contribution | The applicant has contributed to the Exchequer by having annual earnings above £12,570 for a minimum of 3 to 5 years (subject to consultation), in line with the current thresholds for paying income tax and National Insurance Contributions (NICs), or an alternative amount of income. | New requirement—this may be a challenge for non-working dependants if there is no alternative or joint way of demonstrating financial contribution, but the Home Office has clarified that this is complex and there is an equality issue to consider. |
Qualifying period – deductions
Each application for settlement would have a baseline of 10 years continuous residence with the following considerations that reduce the baseline qualifying period:
Note: only one reduction can apply to a single application.
| Pillar | Attribute | Adjustment to baseline qualifying periods | Comment |
| Integration | Applicant has competency in English language at C1 Level under the Common European Framework of Reference for Languages | Minus 1 year | Lower paid skilled workers with fluent English may qualify for Settlement after 9 years |
| Contribution | Applicant has earned a taxable income of £125,140 for 3 years immediately prior to applying for settlement | Minus 7 years | This is good news for very high earners who may qualify for Settlement in 3 years which is much earlier than the current requirements |
| Contribution | Applicant has earned a taxable income of £50,270 for 3 years immediately prior to applying for settlement | Minus 5 years | High earners will maintain the current 5 years route to Settlement |
| Contribution | Applicant has been employed in a specified public service occupation for 5 years | Minus 5 years | Certain, as yet unspecified, public service workers will maintain the current 5 years route to settlement |
| Contribution | Applicant has worked in the community (volunteering, etc) | Minus 3-5 years | Lower paid skilled workers with demonstrable community work could qualify for settlement in 5-7 years |
| Entry and residence | Applicant holds a permission as the parent/partner/child of a British citizen and meets core family requirements | Minus 5 years | Family members of British citizens will maintain the current 5 years route to settlement
|
| Entry and residence | Applicant holds a permission granted under the British National Overseas route | Minus 5 years | BNO visa holders will maintain the current 5 years route to settlement
|
| Entry and residence | Applicant has 3 years continuous residence as the holder of a permission as a Global Talent worker or Innovator Founder | Minus 7 years | No change – Global Talent and Innovator Founder visa holders will maintain their current 3 year route to settlement |
| Entry and residence | Acknowledgement of specific and vulnerable groups having a reduction | TBC | There will be allowances for an as yet undefined group of vulnerable people |
Qualifying period – additions
The baseline period of 10 years would be increased in the following circumstances, with only one consideration (the largest) being applied:
| Pillar | Attribute | Adjustment to baseline qualifying periods | Comment |
| Contribution | Applicant has been in receipt of public funds for less than 12 months during route to settlement | Plus 5 years | Deliberate or accidental receipt of public funds (which has a complex definition) could be disastrous |
| Contribution | Applicant has been in receipt of public funds for more than 12 months during route to settlement | Plus 10 years | |
| Entry and residence | Applicant arrived in the UK illegally e.g. via small boat/clandestine | Plus up to 20 years | This follows on from other government initiatives to reduce illegal migration |
| Entry and residence | Applicant entered the UK on a visit visa | Plus up to 20 years | This is a punishing consequence for those who switched from visitor visas or were granted a discretion |
| Entry and residence | Applicant has overstayed a permission for 6 months or more | Plus up to 20 years | This is a punishing consequence for those who miss their visa expiry date for whatever reason or make a mistake, though the wording suggests a scale will be applied
|
Low to medium skilled roles
The text of the proposal suggests that those in sponsored roles below RQF 6 may have to wait 15 years in order to settle. This would impact those on the Temporary Shortage List and those who are in older versions of the rules when lower skilled rules were eligible for sponsorship.
However, there is no mention of this in the additions table above, so it is unclear at present what is being proposed.
Dependants
The policy proposal makes it clear that individual applicants will have their own residence calculation which means that main applicants and dependant visa holders may have different residence requirements.
Potentially, this means that some main applicants could qualify for settlement in three years while their partner has to wait 10 years.
This creates a problem for applicants who are under 18 at the time of their first application but come of age and start to lead an independent life before both their parents meet the qualifying residence requirements. Under the current rules, both parents must have or be applying for settlement in order for the dependant child to apply.
The consultation does not have an answer to this yet and it welcomes proposals. The Home Office has confirmed to us that they have not landed on a way forward yet and encourages feedback.
Employers will react to the proposals in a range of different ways. Employers in many tech, financial services, engineering and other skills sectors may feel some sense of relief. The majority of the overseas talent they sponsor may still qualify for settlement after five years and the highest earners after three years. The policy will make the UK a more attractive place to the world’s well paid, top talent.
Other employers will be concerned particularly outside of London and the South East. Employees in jobs paid under £50,270 may have to wait ten years for the certainty of settlement, pushing up the cost of sponsorship for employers from approximately £15,000 to £28,000 in application fees. HMRC taxation on those fees could increase that cost even further. Where employers were filling jobs below degree level they’ll need to wait even longer and pay even more.
More fundamentally, the Home Secretary hasn’t decided whether these rules will apply to people already in the UK and the consultation will also cover whether there should be any transitional requirements.
Finally, the issue of family members and whether they will be forced on to different pathways to settlement could reduce the attractiveness of the UK as a destination for top talent.
The consultation runs for 12 weeks until February 2026 and Vialto would be happy to help you craft a response if you are considering making a submission.
Employees may be concerned about these changes and what it means for them. Vialto has material and support available to answer many of the pressing questions, so please contact us if you need any further information.
If you would like to discuss any of the points outlined above, please reach out to your Vialto Partners point of contact, or alternatively:
Lyudmyla Davies
Partner (Solicitor)
Ian Robinson
Partner
Andrea Als
Director (Solicitor)
Tom Marsom
Director (Solicitor)
Lucy Vaux
Senior Manager (Solicitor)
Awale Olad
Senior Manager
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