Unequal Times; proposed changes to settlement move one step closer

The UK’s legal migration landscape is undergoing its most profound transformation in decades. On 20 November 2025, the Home Secretary unveiled the Command Paper, A Fairer Pathway to Settlement: A statement and accompanying consultation on earned settlement (CP 1448), outlining a massive overhaul of how migrants achieve Indefinite Leave to Remain (ILR), or "settlement". The reforms are considered the "biggest shake-up of the legal migration system in nearly half a century".

The government’s position is clear: "To settle in this country forever is not a right, but a privilege. And it must be earned".

For our clients—whether you are a high-skilled worker, an innovator, or an employer relying on international staff—these changes fundamentally alter immigration planning. If you, or your sponsored employees, do not already hold ILR, you are likely subject to these new rules as soon as they take effect in April 2026. This proposal is set to impact almost 2 million migrants who arrived in the UK since 2021.

The Command Paper, Timeline, and Implementation

The Command Paper sets out the new "earned settlement" model, which is based on four core pillars: Character, Integration, Contribution, and Residence.

Key Deadlines

• Consultation Period: The consultation opened on 20 November 2025 and is scheduled to close at 11:59 pm on 12 February 2026.

• Implementation Date: The government anticipates making changes and initiating the phase-out of the old system from April 2026.

• Targeted Impact: The proposed changes will apply to everyone in the country today who has not yet received indefinite leave to remain (ILR).

• Likelihood of Change: Given the presentation of the detailed Command Paper and the Home Secretary’s commitment to address the "unprecedented" scale of recent migration, the core structure of the contribution-based model is highly likely to be implemented. The reforms are designed to create the "most controlled and selective" settlement system in Europe.

Part I: The New Baseline and Mandatory Requirements

The standard qualifying period for most migrants will increase from the current 5 years to a baseline of 10 years.

To qualify for settlement at any time, all applicants must meet the following mandatory suitability criteria:

1. Character: Must have a clean criminal record.

2. Integration: Must speak English to at least A-Level (B2) standard and pass the Life in the UK test.

3. Contribution: Must have made sustained National Insurance Contributions (NICs) through annual earnings above £12,570 for a minimum of 3 to 5 years (subject to consultation).

4. Debt: Must have no outstanding litigation, NHS, tax, or other government debt.

Lawyery’s Commentary: The previous 5-year route, which often allowed settlement based on lawful residence and minimal conditions, is effectively over for most categories. The requirement for sustained NICs above the income tax threshold establishes an economic bar that must be cleared by all applicants, cementing the idea that settlement is reserved for those who demonstrate a measurable economic contribution.

Part II: The Accelerated Path for Innovators and High-Value Migrants

For high-skilled individuals and top earners, the new model retains or establishes fast-track routes, rewarding "outsized contribution" to national life.

Migrant Category/Contribution Level	New Settlement Timeline (Years)	Basis for Reduction (from 10-year baseline)
High Talent / Top Rate Taxpayers	3 years	Continuous residence for 3 years on Global Talent or Innovator Founder visas; OR taxable income above £125,140 for 3 years prior to application.
Higher Rate Taxpayers	5 years	Taxable income above £50,270 for 3 years prior to application.
Public Service Professionals	5 years	Employed in a specified public service occupation (RQF Level 6 or above, e.g., doctors, teachers, nurses) for 5 years.
Partners of UK Citizens & Hong Kong BN(O)s	5 years	Based on uniquely strong attachment to the UK (Note: Not subject to consultation).
Volunteers	5 to 7 years	Recognising community involvement/volunteering (Subject to consultation).

Part III: Critical Risks for Employers and Penalties

The changes introduce a distinct punitive tier for workers in lower-paid or lower-skilled roles, or for those who rely on public assistance.

Extended Timelines for Skilled Workers

• Standard Skilled Workers: Workers on the Skilled Worker route not meeting the higher or top rate tax thresholds will now default to the 10-year qualifying period.

• Low-Skilled Workers (Below RQF Level 6): The government proposes a 15-year qualifying period for migrants admitted to work in occupations below RQF Level 6. This specifically targets the large cohort who arrived on the Health and Care visa between 2022 and 2024 (616,000 individuals). The Home Office argues that this group, particularly those with non-working dependants, is "likely to present significant fiscal costs to the UK".

Lawyery’s Commentary: For employers, this 15-year extension for essential care workers creates a substantial disincentive for staff retention and long-term planning, severely limiting the stability previously offered by the 5-year route.

Penalties and Non-Compliance

The new system imposes severe penalties for reliance on public funds or breaches of immigration rules, which take precedence over any earned reductions.

Negative Factor	New Settlement Timeline (Years)	Basis for Increase (Increase from 10-year baseline)
Benefit Claimants (Long term)	20 years	Received public funds/benefits for more than 12 months (Plus 10 years).
Benefit Claimants (Short term)	15 years	Received public funds/benefits for less than 12 months (Plus 5 years).
Recognised Refugees (Core Protection)	20 years	Starting point for recognised refugees who remain on "core protection" support.
Illegal Entry/Overstaying/Visitor Entry	Up to 30 years	Penalties of up to 20 years added for illegal entry (e.g., small boat), entry on a visitor visa, or overstaying for 6 months or more.

Part IV: The Status of Dependants and Public Funds

Decoupling Dependants

Under the existing rules, dependants typically settle at the same time as the main applicant. This will substantially change.

• The qualifying period for an adult dependant will be separately determined according to their own attributes and circumstances, meaning they may not settle simultaneously with the primary visa holder.

• The consultation is specifically seeking views on whether dependant partners of migrants should earn settlement in their own right.

Restricting Access to Public Funds

The consultation raises a critical proposal regarding the rights attached to settlement status:

• The Home Office is seeking views on whether the law should be changed so that settlement (ILR) is subject to a "no recourse to public funds" (NRPF) condition.

• Under this proposal, access to specified benefits would be reserved for those who have achieved British citizenship, shifting the default position away from settlement.

Lawyery’s Commentary: If enacted, removing automatic access to benefits upon gaining ILR would profoundly change the legal meaning of settled status, creating a permanently conditional residency for those who do not proceed to naturalisation.

What You Must Do Now

Given the pace of change, urgent review of your status is essential, especially since the new rules are intended to apply to all migrants currently in the UK without ILR from April 2026.

• Innovators and High Earners: Ensure you rigorously maintain documentation proving continuous residence and high earnings to qualify for the 3 or 5-year accelerated pathways.

• Skilled Workers and Other Migrants: Calculate your new 10-year or 15-year pathway and ensure you meet the mandatory B2 English standard and NICs requirements.

• Employers: Review your sponsorship obligations and employee retention strategy, particularly for those below RQF Level 6, where the pathway to settlement has been tripled from 5 years to 15 years. Consider the implications for dependants who may no longer settle automatically.

• All migrants who do not yet have settled status: You can check the likely change to your own immigration pathway to settlement here: www.uksettlement.com

The consultation closes on 12 February 2026. This period provides a crucial, narrow window to provide feedback, especially on transitional arrangements for those already on a 5-year pathway. Lawyery strongly advises all affected parties to seek specific legal advice to navigate these seismic changes.

Disclaimer: This article provides a summary of the Home Office's Command Paper (CP 1448) and proposed reforms, which are currently subject to consultation. The final Immigration Rules may differ. Seek professional legal advice on your specific circumstances.