The UK’s proposed earned settlement – Consultation now open

The UK Government’s immigration white paper, published in May 2025, introduced a major proposal: extending the qualifying period for settlement. After months of anticipation, the promised consultation is now live.

The aim is to move from an “automatic” to an “earned” settlement model, ensuring settlement is a privilege earned through meaningful contribution rather than a right acquired after a fixed period. The consultation is open for 12 weeks, until 23:59 GMT on 12 February 2026 and seeks input from all stakeholders, including businesses that sponsor skilled workers.

Why are they doing this?

Between 2020 and 2024, migration reached record levels, driven largely by lower-skilled workers and their dependants. Many of these individuals are forecast to qualify for settlement between 2025 and 2029, granting access to public funds currently unavailable to them.

Following a relaxation of skill levels within work routes, the UK has seen higher numbers of lower-skilled, lower-paid workers who may not make a net positive fiscal contribution. This trend raises concerns about additional pressure on public services and local communities.

What are the proposals?

The proposed “earned settlement” system is built on four pillars:

Character: Applicants must have a clean criminal record and comply with immigration requirements.

Integration: Applicants must demonstrate meaningful engagement with British society, including English language proficiency (B2 level minimum) and passing the Life in the UK test.

Contribution: Applicants must show sustained economic contribution (e.g., annual earnings above £12,570 for 3–5 years).

Residence: Lawful, continuous residence is required but will not alone be sufficient for settlement.

The baseline qualifying period for settlement is currently five years for most immigration routes. Under the new proposals, this will increase to at least 10 years.

Within the proposal is a set of criteria that migrants can meet to reduce the baseline qualifying period.

For migrants who fail to contribute to society, or fail to comply with the Immigration Rules, they may have to wait as long as 30 years before they are able to settle.

Proposed reductions to the baseline qualifying period for settlement may include the following:

• English at advanced level: - reduction of 1 year, making the qualifying period to settlement 9 years
• Income above £50,270 for 3 years: - reduction of 5 years, making the qualifying period to settlement 5 years
• Income above £125,140 for 3 years: - reduction of 7 years, making the qualifying period to settlement 3 years
• Is a Global Talent worker or Innovator Founder: - reduction of 7 years, making the qualifying period to settlement 3 years
• Employment in a public service, such as the NHS: – reduction of 5 years, making the qualifying period to settlement 5 years
• Volunteering: – reduction of 3 to 5 years, making the qualifying period to settlement 7 - 5 years
• Receipt of public funds (<12 months): addition of 5 years, making the qualifying period to settlement 15 years
• Receipt of public funds (>12 months): addition of 10 years, making the qualifying period to settlement 20 years
• Illegal entry/overstay: Up to +20 years, making the qualifying period to settlement 30 years

How could this impact businesses?

The proposed reforms to the settlement system will have a significant impact on businesses that sponsor skilled workers. Many organisations rely on the ability to attract and retain international talent, and the shift from a five-year to a ten-year baseline qualifying period for settlement will affect workforce planning, retention strategies, and the overall attractiveness of the UK as a destination for skilled migrants.

The introduction of stricter requirements—such as higher English language standards, evidence of economic contribution, and potential restrictions on access to public funds—may increase the administrative burden on sponsors and could deter some candidates from accepting UK-based roles. Furthermore, the proposals could possibly include workers already in the UK, which would have an immediate financial impact on sponsors.

Call to action

The Home Office are actively seeking views from businesses, sponsors and individuals. If your organisation sponsors skilled workers or is affected by these proposals, it is vital to contribute to the consultation. Your feedback will help shape the future of the UK’s settlement system.

• How to Respond: The consultation questionnaire is available online at www.gov.uk/government/consultations/earned-settlement.
• Deadline: The consultation closes at 23:59 on 12 February 2026
• Contact: For queries, email earnedsettlementconsultationqueries@homeoffice.gov.uk.

We strongly encourage all sponsors and affected businesses to review the proposals in detail and submit their responses. This is a critical opportunity to ensure that the new settlement system reflects the needs of UK employers and the realities of the labour market.

If you have any questions, please don’t hesitate to contact the immigration team at Freeths. We are here to help and provide expert guidance tailored to your needs.