Status as of 13 October 2026. Earned settlement is a reform under which indefinite leave to remain (ILR) in the UK would no longer be granted automatically after a set period, but would depend on the applicant’s contribution to the economy and society. For now the reform remains a proposal: the consultation has closed, the final policy has not been announced and the current ILR qualifying periods have not changed.
This page tracks what has been proposed, what is already in the Immigration Rules and who will not be affected, and helps you decide whether to apply for ILR now or wait. It is updated after every official decision by the Home Office and Parliament.
Earned settlement reform status as of 13 October 2026
In short, the only part of the package written into the Immigration Rules so far is the higher English requirement for ILR, which applies from 26 March 2027. The new qualifying periods, the reductions and increases to those periods and any transitional arrangements are still at the proposal stage.
| Element of the reform | Status | What is known |
|---|---|---|
| Consultation “A Fairer Pathway to Settlement” | Closed | Published on 20 November 2025, responses accepted until 12 February 2026; outcome not yet published |
| 10-year baseline period with reductions and increases | Proposed | Not yet in the Immigration Rules |
| Transitional arrangements for people already in the UK | Undecided | Options under review include keeping a 5-year period for certain groups |
| B2 English for ILR | Confirmed | Statement of changes HC 1691; applies to applications from 26 March 2027 |
| Start date for the core reform | Not announced | The government has promised to set out the policy before the end of 2026 |
| EU Settlement Scheme | Out of scope | The changes do not apply to people with status under the scheme |
The government had previously said it intended to begin implementing some changes from April 2026, but the core earned settlement model was not in place by that date. On 15 September 2026 the Home Secretary, Shabana Mahmood, told MPs that the policy would be announced later this year, ahead of February 2027, when a large group of migrants who arrived in 2022 would qualify for ILR under the current rules. The timeline and current position are set out in the House of Commons Library briefing.
What earned settlement proposes: periods, reductions and requirements
Today most work routes lead to ILR after 5 years, and the long residence route after 10 years (see the GOV.UK guidance on settling in the UK and the page on ILR under the Long Residence route). The Home Office consultation on earned settlement proposes making 10 years the baseline for most migrants, then shortening or lengthening it according to contribution, integration and immigration history.
How the qualifying period could be shortened
| Proposed basis | Reduction | Resulting period |
|---|---|---|
| Taxable income of £125,140 or more a year for 3 years | −7 years | 3 years |
| Global Talent or Innovator Founder with 3 years’ residence | −7 years | 3 years |
| Taxable income of £50,270 or more a year for 3 years | −5 years | 5 years |
| Public service employment (RQF 6 and above) for 5 years | −5 years | 5 years |
| Partner, parent or child of a British citizen | −5 years | 5 years |
| BN(O) visa for Hong Kong residents | −5 years | 5 years |
| Volunteering and community work | −3 to 5 years | 5–7 years |
| English at C1 level | −1 year | 9 years |
Reductions do not add up: the House of Commons Home Affairs Committee report of 13 March 2026 notes that, under the proposed scheme, only the largest applicable reduction counts. According to the same report, the baseline for medium-skilled work visas (RQF 3–5) would rise to 15 years.
How the qualifying period could be lengthened
| Proposed basis | Increase |
|---|---|
| Receipt of public funds for less than 12 months | +5 years |
| Receipt of public funds for more than 12 months | +10 years |
| Overstaying by 6 months or more | up to +20 years |
| Illegal entry to the UK | up to +20 years |
| Entry on a visit visa | up to +20 years |
Mandatory requirements for all applicants
Beyond the qualifying period, the proposals introduce minimum conditions without which ILR would not be granted, even if the required number of years has been completed:
- no criminal convictions and no debts owed to the government;
- English at B2 level on the CEFR scale;
- a pass in the Life in the UK test;
- income of at least £12,570 a year for 3–5 years, or another verified source of funds.
The income threshold and the English requirement are the conditions that are easiest to prepare for in advance. They are also the points the Imperial & Legal expert focuses on when assessing the prospects of clients who have not yet reached the qualifying period.
Bear in mind that all the figures above come from the consultation document and the parliamentary committee report. The final policy may differ: the government received more than 200,000 responses and has said it will take them into account.
What has already been confirmed
Only individual changes from the package have been written into the Immigration Rules so far. They apply regardless of when, and in what form, the earned settlement model is adopted:
- B2 English for ILR. Statement of changes HC 1691 of 5 March 2026 raises the requirement from B1 to B2 for applications made on or after 26 March 2027. The change covers Skilled Worker, Global Talent, Innovator Founder, Scale-up, UK Ancestry, Long Residence, family routes and several others; the full list is in the explanatory memorandum to HC 1691.
- B2 English on entry. For new Skilled Worker, Scale-up and High Potential applications, the B2 requirement has applied since 8 January 2026; read more about the Skilled Worker visa.
- Transitional protection for refugees. Those granted 5-year status before 1 March 2026 keep their existing route to settlement through Appendix Settlement Protection.
If you plan to apply for ILR before 26 March 2027, the current B1 English level still applies. After that date you will need a B2 certificate, so it is best to take the test early so that it does not delay your application.
Below is a summary of the changes that already affect settlement planning, even though the final policy has not yet been published.
Key ILR changes worth factoring into your plans right now
- Proposed baseline period to ILR of 10 years instead of 5
- Reduction to 3 years for income of £125,140 or more over 3 years
- Retention of a 5-year route for partners of British citizens
- B2 English for ILR applications made from 26 March 2027
- Longer qualifying periods for benefit claimants and rule breaches
- No final decision yet on transitional arrangements
- No change for people with status under the EU Settlement Scheme
Who the reform will not affect, or will affect less
The short answer: the reform does not apply to people who already hold settled status, and the proposals keep shorter periods for several groups. According to the consultation:
- holders of ILR and settled status — settlement already granted is not being reopened;
- people with status under the EU Settlement Scheme — the scheme is entirely outside the reform;
- people covered by the Windrush Scheme;
- partners, parents and children of British citizens — a 5-year period under the proposals (more on UK family visas);
- BN(O) visa holders — a 5-year period under the proposals;
- holders of the Global Talent visa and the Innovator Founder visa — a 3-year period under the proposals, subject to conditions.
However, the consultation proposed applying the new rules to everyone who has not been granted ILR when they change. This was the most criticised element: the Home Affairs Committee recommended transitional arrangements for people who moved to the UK expecting a 5-year route. No decision has been made yet, so a carefully calculated filing date is the main way to protect your plans.
Settlement in the UK
ILR support during the earned settlement reform
Assessing your ILR route
Filing date worked out under current rules and the proposals
Preparing the application
Checks on documents, absences, income and English level
Reform scenarios
An action plan if ILR timelines change before you apply
Route to citizenship
Timing and requirements for naturalisation after ILR
Even when the general rules are clear, the best filing date depends on the details: your visa, income, travel history and plans for citizenship. Here is how to approach the decision in typical situations.
Apply for ILR now or wait for the reform
If you already meet the ILR requirements under the current rules, there is usually little reason to wait: an application is decided under the rules in force on the date it is made, and the proposals suggested applying the new requirements to everyone who has not yet been granted ILR. Waiting may make sense only where the new model could offer a shorter route, and that decision is best taken after an individual assessment.
Situations and possible actions
| Your situation | What to consider | Possible action |
|---|---|---|
| You already qualify for ILR | The new rules could be introduced without a long notice period | Prepare and submit an application under the current rules |
| Less than a year until you qualify | Your filing date may fall after the rules change | Gather documents early and pass the English and Life in the UK tests |
| 2–4 years until ILR | The final period depends on transitional arrangements | Document income and tax, and follow the government’s decision |
| Income of £125,140 or more, or a Global Talent or Innovator Founder visa | The new model could allow ILR after 3 years | Compare both scenarios and choose a filing date |
| Applying after 26 March 2027 | B2 English will be required | Take the B2 test in advance |
| History of public funds or overstaying | The proposals would lengthen the qualifying period | Get legal advice before applying |
Citizenship deserves separate attention. The consultation states that changes to the requirements for British citizenship will follow the settlement reform on similar principles, but primary legislation will be needed. An earlier grant of ILR today is therefore also a more predictable starting point for naturalisation.
Costs and timescales for ILR
Application fees are separate from the earned settlement reform and are set in the Home Office fees table. Under the table in force from 8 October 2026, the main costs on the route to settlement and citizenship are as follows:
| Application | Fee |
|---|---|
| ILR in the UK (per applicant, including dependants) | £3,226 |
| Naturalisation as a British citizen | £1,709 |
| Citizenship ceremony | £130 |
| Life in the UK test | £50 |
English tests, document translations and professional support are paid for separately. Processing times depend on the route and on Home Office demand, so it is wise to build in extra time, especially if your application falls before the rules change.
Preparing for ILR during the reform means not only gathering documents but also modelling scenarios, and this is where professional support saves time.
Benefits of seeking support with your ILR application from Imperial & Legal
- Calculation of your ILR eligibility date under current and proposed rules
- Review of absences and continuity of residence
- Analysis of income and tax records against the proposed thresholds
- Preparation for the Life in the UK test and the B2 English exam
- Drafting of the cover letter and the full document bundle
- Support with Home Office requests until a decision is made
- Planning for naturalisation once ILR is granted
Here is what that support looks like in practice, step by step, from the first assessment to preparing for citizenship.
The route to ILR during the reform: 5 steps
The process is designed so that you are ready to apply at the best moment, whenever the government announces its final policy.
Consultation and ILR eligibility check under both scenarios
Gathering evidence of income, residence and English
Preparing and submitting the ILR application
Home Office decision and grant of settled status
Moving on to British citizenship after ILR
Timescales are indicative and depend on how complete your documents are and when you become eligible to apply.
Page update log
Official developments on the reform are recorded here in chronological order. New entries are added after Home Office publications, statements of changes and announcements in Parliament.
- 20 November 2025 — consultation “A Fairer Pathway to Settlement” published.
- 12 February 2026 — consultation closed to responses.
- 5 March 2026 — statement of changes HC 1691: B2 English for ILR from 26 March 2027.
- 13 March 2026 — Home Affairs Committee report published with recommendations on transitional arrangements.
- 15 September 2026 — the Home Secretary undertook to announce the policy before the end of 2026.
- 13 October 2026 — status checked: the core reform has not come into force and the consultation outcome has not been published.
Practical examples: how the reform could affect different situations
The examples below are illustrative and show how the calculation would work under the proposals. The final rules may differ, and a real assessment depends on your full immigration history.
A Skilled Worker visa holder since 2022
A professional who arrived on a work visa in early 2022 would qualify for ILR in early 2027 under the current rules. If the new rules take effect first and transitional protection does not cover them, the baseline would be 10 years. With income of £50,270 or more over 3 years, that would fall to 5 years — in effect unchanged, but with evidence of income required and, for applications after 26 March 2027, a B2 certificate.
A company founder on the Innovator Founder visa
An entrepreneur is living in the UK on an Innovator Founder visa. The proposals include a 7-year reduction for this visa after 3 years’ residence, so the new model could be at least as favourable as the current one. The key is to compare both scenarios before applying and to check that the visa conditions have been met throughout.
The spouse of a British citizen
An applicant is in the UK on a family visa. The proposals keep a 5-year period for partners of British citizens, so the reform barely changes her plans. However, the B2 English requirement for applications from 26 March 2027 also applies to family routes.
Similar situations come up in Imperial & Legal’s practice: switching visa routes, keeping status when an employer changes, and putting tax records in order before applying for settlement.
Client stories on this topic
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....
Immigrations Advisor’s Unexpected Solution: Switching from UK Skilled Worker Visa to UK Family Visa to Stay in the UK without Restrictions
Karima was born in a respectable family in Egypt....
Obtaining UK Skilled Worker Visa after Your Employer Changes Their Sponsorship Licence
Li Qian is an experienced chef. He had been working in one of the well-known restaurants in West London for a year. Then the owner decided to set up a...
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...
One client explained why she needed help specifically at the settlement stage:
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.
Her story shows how often people reach the ILR stage with incomplete income and tax records — exactly the information that becomes central under earned settlement.
Common mistakes when planning ILR during the reform
Uncertainty around the reform encourages decisions that are hard to undo later. The most common mistakes are:
- putting off an application “until things are clearer” while already eligible under the current rules;
- assuming the reform will not affect people already in the UK, although transitional rules have not been confirmed;
- not keeping evidence of income and tax paid, which the new model relies on;
- leaving the English test until the last moment and overlooking the move to B2 from 26 March 2027;
- miscalculating absences from the UK, which breaks continuous residence;
- relying on unofficial summaries instead of Home Office and parliamentary publications.
Most of these mistakes stem not from complex rules but from misjudged timing. They are easier to prevent in a consultation than to fix after a refusal.
To sum up, the reform is still evolving, but for most applicants the steps that reduce risk are already clear.
What to do now: a short plan
Until the government announces its final policy, a sensible strategy is to act under the current rules while preparing for the new requirements. That way you can apply as soon as you become eligible without depending on the reform timetable.
Key takeaways
- As of 13 October 2026, earned settlement has not come into force and the current ILR periods still apply.
- B2 English is required for ILR applications made from 26 March 2027.
- The proposals set a 10-year baseline, with reductions to 3–5 years for income, certain visas and family ties.
- No decision has yet been made on transitional arrangements for people already in the UK.
- People with status under the EU Settlement Scheme and existing ILR holders are not affected.
The information on this page is general, based on official publications as of the update date, and does not constitute individual legal advice. The rules may change; any decision to apply should take your own circumstances into account.
