Earned Settlement (ILR) from 2026: What the New Rules Mean and What You Should Do Now
Last updated: February 2026
The UK government is proposing a fundamental change to how people qualify for Indefinite Leave to Remain (ILR).
From April 2026, the current system — where many migrants can settle after 5 years — is expected to be replaced by an “earned settlement” model.
Under the proposed system, time alone will no longer be enough. Settlement will depend on how long you have lived in the UK, how you entered, how you have complied with immigration law, and whether you can demonstrate contribution and integration.
This guide explains what is proposed, what remains uncertain, and what practical steps you should consider now.
What Is Earned Settlement?
Earned settlement is a proposed framework under which everyone starts with a baseline qualifying period for ILR.
That baseline can then be reduced (for positive factors) or increased (for penalties).
Applicants must also meet a set of mandatory requirements.
If those requirements are not met, settlement may not be available at all — regardless of how long someone has lived in the UK.
These proposals are not yet final law, but the overall structure is now clear.
Baseline Qualifying Periods
Under the current proposals, the starting point for settlement would be:
- 10 years lawful residence – standard baseline (not under consultation)
- 15 years for sponsored workers in occupations below RQF Level 6 (subject to consultation)
- 20 years for recognised refugees (with limited reduction options)
- Humanitarian routes (e.g. Afghanistan, Syria): baseline still under consultation
The proposals do not apply to:
- People with EU Settled Status
- Windrush cases
- People who already hold ILR
- Children in care and care leavers ILPA-Forum-Discussion_Upcoming-…
Mandatory Requirements (Apply to Everyone)
Regardless of time spent in the UK, applicants must meet all mandatory requirements.
Character and suitability
- No serious criminality
- Compliance with immigration law
- No outstanding NHS, tax, or other government debt
Integration
- English language requirement expected to increase from B1 to B2
- Pass the Life in the UK test
Contribution
- Minimum annual earnings of £12,570
- Must be met for 3–5 years (duration under consultation)
- The earnings threshold itself is not under consultation
Residence
- Continuous residence during the qualifying period
Failure to meet mandatory requirements may mean no eligibility for ILR at all, regardless of length of residence.
Reductions: How the Qualifying Period May Be Shortened
Only one reduction can apply — the one that provides the largest reduction.
Examples include:
- High earnings (£125,140 for 3 years): reduction of up to 7 years
- Earnings of £50,270 for 3 years: 5 years
- Certain public service occupations (e.g. doctors, nurses, teachers): 5 years
- Family members of British citizens meeting core family requirements: 5 years
- Hong Kong BN(O) visa holders: 5 years
- Global Talent or Innovator Founder visa holders (3 years’ residence): up to 7 years
- Community or voluntary work: 3–5 years (details still under consultation)
Some reductions remain subject to consultation and may change.
Penalties: How the Qualifying Period May Be Increased
Only one penalty applies — again, the largest.
Penalties include:
- Use of public funds for less than 12 months: +5 years
- Use of public funds for more than 12 months: +10 years
- Illegal entry (including small boat): up to +20 years
- Entry as a visitor then switching routes: up to +20 years
- Overstaying for 6 months or more: up to +20 years
A reduction and a penalty can be combined.
For example, a 5-year reduction plus a 10-year penalty results in a net increase of 5 years.
What This Means in Practice
Under the proposed system:
- Two people arriving in the UK on the same day could qualify for settlement decades apart
- Dependants may no longer qualify for settlement at the same time as the main applicant
- Parents of British children may still face very long routes to settlement
- People who previously relied on the long residence route may lose that option entirely
Much depends on transitional arrangements, which have not yet been confirmed.
What Is Still Uncertain
Key unresolved issues include:
- Whether existing visa holders will receive transitional protection
- How maternity leave, illness, or caring responsibilities will affect earnings requirements
- How children and young adults will be treated as dependants as they get older
- Whether time on non-settlement routes (such as student visas) will count
- Whether settlement itself may carry No Recourse to Public Funds
These issues remain under consultation and may change.
What You Should Consider Doing Now
Depending on your circumstances, you may wish to:
- Calculate eligibility under the current rules
- Apply for ILR before April 2026, if eligible
- Avoid actions that could trigger future penalties
- Seek advice before switching routes, claiming benefits, or changing employment
- Take English tests or other steps only with advice, as some reductions may not survive consultation
Under the proposed rules, the most expensive mistake may be waiting.
Considering Settlement Under the New Rules?
The proposed earned settlement system introduces longer qualifying periods, stricter conditions, and significant penalties for past immigration issues.
If you are already in the UK, the decisions you make before April 2026 may determine whether settlement takes five years — or thirty.
We advise on:
- Eligibility under current and proposed rules
- Whether applying before April 2026 is realistic
- Risk created by route changes, employment changes, or benefit use
Speak to an immigration lawyer before the rules change.