UK earned settlement 2026: how the new ILR rules will change the path to permanent residence
On 2 November 2026, Home Secretary Shabana Mahmood set out the final version of the earned settlement reforms in Parliament. The standard qualifying period for indefinite leave to remain (ILR) will increase from 5 to 10 years. People who make a sustained economic or public contribution will be able to settle after 5 or even 3 years, while immigration breaches and reliance on public funds will extend the path to 20 years.
At the same time, the Home Office published its response to the consultation “A Fairer Pathway to Settlement” (CP 1707). This guide explains what will change, who is affected, which transitional arrangements protect people already living in the UK, and which steps are worth taking now, before the new requirements appear in the Immigration Rules.
Key takeaways
- The standard qualifying period for ILR becomes 10 years; accelerated routes take 3 years (earnings of £125,141 or more, or the highest talent routes) or 5 years (earnings of £50,271 or more, doctors, nurses, teachers, a British connection).
- Every applicant must have no criminal record and no debt to the state, English at B2 level, a pass in the Life in the UK test and earnings of at least £12,571 a year.
- An immigration breach committed as an adult, or receipt of public funds in the 5 years before applying, leads to a 20-year pathway.
- Time on temporary routes (Student, Graduate, Global Business Mobility and others) will not count, and the Long Residence route will close.
- Couples can combine their earnings to meet a household threshold of £25,142 a year.
- The policy has been announced, but the law has not yet changed: the current Immigration Rules apply until amendments come into force.
What the government announced on 2 November 2026
Earned settlement is a new model for ILR in which the time needed to qualify depends not only on how long someone has lived in the UK, but on four principles: character (respect for the law), contribution (earnings and work), integration (English language and knowledge of life in the UK) and lawful residence on a qualifying route. The idea was first set out in the Immigration White Paper of May 2025; in November 2025 the government consulted on the details, and it has now published the final framework.
According to the Home Office, the consultation received 204,667 responses, 202,241 of them from individuals. The government says it has listened: the final model is simpler than the original proposals, recognises a wider range of contributions, lets families settle together and includes targeted transitional protections. The full response is available on the consultation page on GOV.UK, and the Home Secretary’s speech is published as an oral statement to Parliament.
For most people on work visas, the key change is the end of “automatic” settlement after 5 years. On many routes today, including the Skilled Worker visa, it is enough to complete five years and meet the route requirements. Under the new framework, 5 years will remain available only to those who show a higher level of contribution, and everyone else will follow the 10-year pathway.
Have the rules already changed?
No. On 2 November 2026 the government announced its policy, but the law has not changed. The new requirements will apply only once they are written into the Immigration Rules through a Statement of Changes, the formal document the Home Office lays before Parliament. Until then, ILR applications are decided under the current Immigration Rules.
Part of the reform was set in motion earlier. In March 2026 the government announced a higher English language requirement for settlement: B2 (equivalent to an A level in a foreign language) instead of B1. According to the Home Office news story on GOV.UK, this requirement comes into effect in March 2027 and was described as the first delivery moment of earned settlement.
In the consultation response, the government also commits to publishing further guidance with technical and operational detail before implementation: which benefits count as “public funds” for the new rule, which safeguards apply to vulnerable groups and how earnings will be assessed. The document does not give commencement dates for the individual elements of the reform.
Mandatory requirements for every applicant
The new framework introduces a set of minimum standards. They cannot be offset by higher earnings, public service or other contributions: if even one requirement is not met, an accelerated pathway is not available, and in some cases settlement will be refused altogether.
Minimum requirements for ILR under the earned settlement framework
- No criminal record in the UK for applicants aged 18 or over
- No outstanding debt to the NHS, HMRC or the Home Office when applying
- Evidence of English language ability at B2 level or above
- A pass in the Life in the UK test on British history and values
- Earnings of at least £12,571 a year for a minimum of three years
- Compliance with immigration conditions throughout the qualifying period
- Compliance with the general suitability requirements in the Immigration Rules
Two requirements become noticeably stricter. First, any adult applicant with a criminal record in the UK will be refused. A criminal record includes not only custodial and suspended sentences but also out-of-court disposals such as conditional cautions, absolute and conditional discharges, court-imposed fines, community sentences and civil orders where there has been a conviction. Overseas convictions will also lead to refusal where the conduct would be an offence in the UK.
Second, having no outstanding government debt becomes a mandatory requirement. At present, debt affects a decision only in certain circumstances and at the Home Office’s discretion. Under the new rules, debt will include NHS debt, tax debt (including unpaid tax and National Insurance contributions) and litigation debt owed to the Home Office. Reviewing tax history and Self Assessment returns therefore becomes part of preparing for ILR.
B2 English and the Life in the UK test remain subject to the existing exemptions for children, people aged 65 and over and those unable to meet the requirement because of a physical or mental condition. C1 English will not reduce the qualifying period; the government dropped that idea after the consultation.
Four routes to ILR: 3, 5, 10 and 20 years
Instead of a single 5-year period, there will be four pathways. Which one applies depends on earnings, occupation, connection to the UK and compliance history. The mandatory requirements from the previous section apply to every pathway.
| Minimum residence | Who it is for | What must be shown | What rules this pathway out |
|---|---|---|---|
| 3 years | People making an exceptional economic contribution | Earnings of £125,141 in 3 of the last 4 years, or qualifying through the Highest Talent Group | Public funds in the last 5 years; a qualifying immigration breach |
| 5 years | Higher earners, health and education workers, people with a British connection | Earnings of £50,271 in 3 of the last 5 years, or 5 years in an Annex C occupation, or a British connection | Public funds in the last 5 years; a qualifying immigration breach |
| 10 years | The default for anyone who plays by the rules | Earnings of £12,571 in 5 of the last 7 years and all mandatory requirements | Public funds in the last 5 years; a qualifying immigration breach |
| 20 years | People whose immigration breaches or use of public funds prevent an earlier pathway | Earnings of £12,571 in 5 of the last 7 years and all mandatory requirements | — |
The earnings thresholds are linked to income tax bands: £12,571 sits at the start of the basic rate, £50,271 at the higher rate and £125,141 at the additional rate. The government says the thresholds will move with any future changes to the tax bands published on the GOV.UK income tax rates page.
The 3-year pathway through the Highest Talent Group is not yet fully defined: the government’s summary table notes that it is subject to review pending a report from the Migration Advisory Committee (MAC). The consultation response lists Skilled Worker, Global Talent, Scale-up, Innovator Founder and International Sportsperson as high talent routes. For Global Talent and Innovator Founder, the most recent grant of permission must have been on that route.
The 5-year pathway for health and education workers relies on a closed list of occupations in Annex C. It includes generalist and specialist medical practitioners, nurses of various specialisms, midwives, pharmacists, dental practitioners, physiotherapists, paramedics, primary, secondary and special needs teachers, further education teaching professionals, head teachers and social workers. These are the occupations whose going rates in the Immigration Rules are based on national pay scales.
How earnings will be assessed: the “best years” approach
Earnings will be assessed over an extended period rather than year by year, which the government calls the “best years” approach. It means that maternity leave, caring responsibilities or illness will not automatically place someone on a longer pathway.
- 3-year pathway: at least £125,141 in three of the four years before applying, so one year may be below the threshold.
- 5-year pathway: at least £50,271 in three of the five years, so two years may be below the threshold.
- 10-year pathway: at least £12,571 in five of the seven years, so two years may be below the threshold.
The document gives an example: an applicant on the 10-year pathway earns above £12,571 for three years, takes two years of maternity leave and then earns above the threshold for a further two years. She meets the five-of-seven requirement, and her pathway is not extended. The minimum earnings requirement does not apply to children, people aged 65 and over or those unable to work because of a physical or mental condition.
Household income
Following the consultation, the government will allow couples to combine their earnings. The household threshold is £25,142 a year, twice the individual minimum, and can be met by one partner alone or by both together. A partner who works part time or has stepped away from work to care for children does not need to reach £12,571 personally, provided the couple meets the combined threshold. The relationship must be genuine and subsisting, and only one person may rely on the other’s income.
Contrary to the original proposals, volunteering will not reduce the qualifying period: voluntary-sector organisations raised concerns about safeguarding, verification and the risk of vulnerable people being pressured into unpaid work.
Which visas count towards settlement and which do not
One of the most significant parts of the reform is the split between routes intended to lead to settlement and temporary routes. Time on temporary visas will no longer build towards ILR, and the Long Residence route, which allowed settlement after 10 years of any lawful residence, will close.
Routes that will count towards settlement:
- longer-term work, talent and family routes (core permission): Skilled Worker, UK Ancestry, Global Talent, Scale-up, Innovator Founder, International Sportsperson, Minister of Religion, partner and parent routes and Stateless Person;
- specified talent and innovation routes (the high talent group);
- Family and Private Life, but only for the 10 and 20-year pathways;
- protection routes for refugees and Safe and Legal routes.
Routes that will not count: Visit, Student, Global Business Mobility, Temporary Worker, Youth Mobility, Seasonal Worker, Overseas Domestic Worker, Graduate and High Potential Individual, as well as the Ukraine schemes. The approach to Leave Outside the Rules will be set out later. In practice, years spent studying or working on the Graduate visa will no longer bring someone closer to ILR; the clock starts only once they move onto a qualifying route such as Skilled Worker.
In addition, time on protection or human rights routes (refugee status, Article 8) cannot be combined with time on work or family routes. When someone moves between these types of route, the qualifying period for the new pathway starts from the date of the move.
Partners and children: how families settle
The government has moved away from a fully individual model in which each family member would have to earn settlement in their own right. The final approach places more weight on family unity.
- A partner who arrives with the main applicant can settle at the same time, provided they meet the relevant requirements.
- A partner who joins later must complete the same qualifying period. If the main applicant is on a 5-year pathway and the partner arrives two years later, the partner will apply two years after the main applicant.
- Children under 18 settle with their parents and are exempt from the income, debt, English and Life in the UK requirements, but not from suitability and criminality checks.
- Young adults aged 18 to 24 who keep child-dependant status can settle with their family. They must meet the adult mandatory requirements, except the individual earnings requirement.
- From age 25, a person whose family has not yet become eligible for settlement must qualify independently or move onto their own immigration route.
The last point matters most for families on the 10-year pathway: a child who arrived as a teenager may turn 25 before the parents become eligible for ILR. In such cases, a plan for the adult child, whether study, work on a qualifying visa or an independent application, should be considered early.
Benefits of seeking support with ILR for the whole family
- Assessment of the likely route to ILR for each family member
- Calculation of individual and household earnings under the best years rule
- Review of tax history and any HMRC debt before the application
- Planning for children who will soon turn 18 or 25
- Preparation of evidence for B2 English and the Life in the UK test
- Support with visa extensions until the family becomes eligible for ILR
- Preparation and submission of ILR applications for the whole family
Transitional arrangements for people already in the UK
There will be no general exemption for people already living in the UK. The government notes that, unless transitional provisions apply, each application is assessed under the rules in force on the date it was submitted, and arriving under the old rules does not create a right to settle after 5 years. However, targeted arrangements apply to several cohorts who were in the UK before the White Paper was published in May 2025.
Care workers
Care workers who entered, or switched into, the care worker route before May 2025 keep the 5-year qualifying period if they meet the salary (£25,000 a year), sponsorship and employment requirements, as well as the strengthened mandatory requirements, including on criminality and English. Those who do not meet the requirements will get a second opportunity: a further 5-year Health and Care visa restricted to genuine work in the sector, with no recourse to public funds. According to the Home Secretary, this group represents around a quarter of those who came in 2022–2025.
From 1 February 2027, care workers who lose their job because their sponsor’s licence is revoked will have up to 120 days to secure a new job offer and a further 60 days to resolve their visa and employment status. Care workers who joined the route after May 2025 will follow the standard 10-year pathway.
Health and education workers below RQF 6
Health and education workers on national pay scales in occupations below RQF level 6 (such as nursing auxiliaries and teaching assistants) keep a 5-year route to settlement if they came to the UK before May 2025 and meet the requirements of their visa. This is a one-off arrangement for the existing cohort, not a permanent route.
Skilled Workers on pre-April 2024 terms
In 2024, Skilled Worker salary thresholds rose substantially, and workers already on the route were allowed to extend under the previous thresholds until 2030. Because the qualifying period for roles below RQF 6 rises to 10 years, this arrangement will be extended to 2035. Workers below RQF 6 will not face the 15-year pathway proposed in the consultation: their default is the 10-year pathway, with the option to qualify sooner on higher earnings.
Who is outside the reform
Several groups remain outside the main earned settlement framework, and the government will honour the commitments made to them. They will still need to meet the strengthened general requirements, including on criminality and B2 English, unless an existing exemption applies.
- Hong Kong BN(O): settlement after 5 years, subject to route requirements.
- British connection: partners, parents and children of British citizens and Commonwealth citizens on the UK Ancestry route keep a 5-year pathway.
- HM Armed Forces: service personnel after at least 4 years’ reckonable service, their partners and children after 5 years’ residence.
- Afghan schemes, Windrush and legacy Safe and Legal routes continue under existing arrangements.
- Vulnerable groups: bereaved partners, victims of domestic abuse, children in local authority care and unaccompanied asylum-seeking children.
- EU Settlement Scheme, ECAA and the closed Tier 1 (Investor) route are not affected.
Refugees
Refugees will follow a separate scale. Those admitted through Safe and Legal routes will be able to settle after 5 years. People granted protection in the UK who move into sustained work or study can settle after 10 years, and others after 20 years. For those who entered illegally, for example by small boat, a further 10 years applies unless Article 31 of the Refugee Convention is engaged.
Implementation timing: what is known
The government has not given a single date for moving to the new framework. What is known: the B2 English requirement for settlement comes into effect in March 2027, and the new rules for care workers who lose their sponsor apply from 1 February 2027. Other elements will be introduced through amendments to the Immigration Rules, and the Home Office has committed to publishing guidance and a full Impact Assessment before implementation.
The MAC report on talent routes also matters, as it will determine who falls within the Highest Talent Group for the 3-year pathway. Until it is published, relying on the 3-year pathway without verified earnings of £125,141 or more is risky.
In practice, applicants who become eligible for ILR under the current rules before the amendments come into force will be assessed under the existing framework, unless the government provides otherwise in its transitional provisions. Monitoring Statements of Changes over the coming months is therefore an essential part of planning.
What to do now: a step-by-step plan
Even without a confirmed commencement date, it makes sense to start preparing for ILR under the new framework early, as some requirements (earnings over several years, tax history, English) cannot be met at the last minute. Below is the sequence that Imperial & Legal advisers recommend to holders of work and family visas.
Consultation and assessment of your route to ILR
Review of earnings, tax and debts owed to the state
Preparation for B2 English and the Life in the UK test
Preparation and submission of the ILR application
ILR decision and planning for British citizenship
If you plan to apply for a British passport, bear in mind that a longer path to ILR also pushes back naturalisation. The requirements are covered in more detail in the guide to British citizenship.
Practical examples
To see how the new framework works in practice, consider several typical situations. They are based on examples in the government response and are not a substitute for individual advice.
- A Skilled Worker earning £42,000. The 5-year threshold (£50,271) is not met, so the default is 10 years. If earnings rise above £50,271 in three of the last five years, the pathway shortens to 5 years.
- The spouse of a British citizen earning £42,000. Thanks to the British connection, the 5-year pathway remains available even though the £50,271 threshold is not met.
- A social worker earning below £50,271. The occupation is listed in Annex C, so the 5-year pathway is available.
- A family where one partner works part time. Their earnings are below £12,571, but the couple’s combined income is above £25,142, so the contribution requirement is met.
- A graduate on the Graduate visa. Two years on the Graduate visa do not count; the 10-year (or accelerated) pathway starts after switching to Skilled Worker.
- An entrepreneur earning more than £125,141. With verified earnings in three of the last four years and all other requirements met, the 3-year pathway applies.
Situations like these, from switching visas to evidencing earnings and resolving tax issues before an ILR application, come up regularly in Imperial & Legal’s practice. Below are several real client stories involving work visas, talent visas and preparation for ILR.
Related client stories
Tax Returns for Client Who Applies for Indefinite Leave to Remain
Anna relocated to the United Kingdom from New Zealand. She had been happy there with her husband Frederik. He had had a successful automobile business....
Obtaining a Certificate of Sponsorship and UK Skilled Worker Visa
Aigul is from Kazakhstan. She is an experienced pharmacist with a medical degree who finds a perfect job in the United Kingdom and wants to relocate...
Obtaining UK Global Talent Visa for IT Specialist
Like any other country, the UK welcomes educated, highly qualified and skilled specialists. It does its best to attract talents who could contribute to British cultural and scientific...
Innovator founder visa case: successful relocation of a tech entrepreneur from Argentina to the UK
Imperial & Legal guided a high-tech entrepreneur from Argentina through every stage of relocation to...
Tax history, which will become a mandatory condition for ILR under the new rules, already turns out to be an unexpected obstacle for some applicants. One client described how she discovered this before applying:
I only vaguely remember how I relocated to the UK five years ago when my Frederik with whom we had spent almost the whole life together passed away. An old friend of ours found a company that helped me with all the relocation-related matters without my involvement. When it was time to apply for Indefinite Leave to Remain, I realised that I had lost contacts of that company and that I had forgotten about taxation and other important legal aspects. For that reason, I applied to Imperial & Legal.
Common mistakes when preparing for ILR
The reform is not yet in force, but it is already clear which mistakes could cost years. Many of them come from relying on the old rules or leaving preparation until the final year.
- Assuming settlement after 5 years by default. If earnings are below £50,271 and there is no other basis for the 5-year pathway, the default will be 10 years.
- Ignoring small tax debts. An unfiled return, underpaid tax or an NHS debt will become a mandatory ground for refusal.
- Allowing gaps in lawful status. Even a short overstay or a breach of visa conditions as an adult leads to the 20-year pathway.
- Counting time on temporary visas. Years on the Student or Graduate visa no longer bring you closer to ILR.
- Overlooking children’s ages. A child who turns 25 before the family becomes eligible will need their own route.
- Leaving English until later. B2 is required from March 2027, and moving up from B1 takes around 200 hours of learning, according to the Home Office.
- Claiming public funds without assessing the consequences. Benefits in the 5 years before applying can lead to the 20-year pathway; the government will confirm which benefits count, and the current definition is set out in the Home Office guidance on public funds.
Most of these risks can be reduced by identifying your pathway early, putting your tax history in order and planning visa extensions in advance. This is exactly where specialist immigration advice helps.
ILR support
Preparing for ILR under the earned settlement rules
Route to ILR assessment
Your likely qualifying period: 3, 5, 10 or 20 years
Tax and debt review
Checking for HMRC and NHS debt before you apply
B2 English plan
Choosing a test and timing around your application
ILR application
Documents, cover letter and submission support
Key points of the earned settlement reform
The reform announced on 2 November 2026 is the most significant change to the ILR rules in years. The standard qualifying period doubles to 10 years and can be shortened only through demonstrated contribution: higher earnings, work in health and education or a British connection. Requirements on character, tax compliance and English become mandatory for everyone.
For people already in the UK, the key questions are whether they will become eligible for ILR before the amendments take effect and whether they fall within one of the transitional cohorts. Until the law changes, the current rules apply, but planning should already take the new framework into account. For more on current routes, see the guide to ILR in the UK and the GOV.UK page on indefinite leave to remain.
This article is for general information only and is not individual legal advice. Details of the reform will be confirmed in amendments to the Immigration Rules and Home Office guidance; decisions about your own situation should be made after speaking to a qualified adviser.
