The Home Office consultation on the proposed earned settlement reforms closed on 12 February 2026. Around 130,000 responses were submitted. Ministers will now review those responses before publishing a formal position and laying a Statement of Changes to the Immigration Rules.
Although the detailed framework is still to be finalised, what is clear at this stage is that that government intends to replace the established five-year route to indefinite leave to remain with a longer, contribution-based model built around a ten-year baseline for most routes.
If implemented broadly in line with the consultation, the reforms will reshape workforce planning, sponsorship cycles and long-term cost exposure across sponsored populations.
ILR Proposals
The central proposal under a new Earned Settlement regime is to extend the standard qualifying period for settlement from five years to ten years for most routes. The Home Secretary has indicated that this shift in baseline is a policy intention, with the consultation focused on design rather than principle.
Under the proposed framework, settlement would depend not only on residence but also on meeting mandatory conditions linked to character, integration, earnings and immigration compliance. The consultation outlines income-linked reductions for sustained high earners, while illustrating longer timelines for roles below RQF level 6 and for those who have relied on public funds or committed immigration breaches.
The consultation also discusses a higher English language threshold at B2 level, a minimum earnings condition assessed using HMRC data and the possible removal of the stand-alone ten-year long residence route. None of these changes are yet in force, but the direction of reform is established.
Workforce Planning Consequences
The five-year ILR expectation has long underpinned recruitment strategy and retention modelling for sponsored roles. It provided a predictable horizon. Sponsor for five years, then transition to settled status with reduced immigration oversight.
A ten-year baseline alters that equation.
Sponsorship relationships may extend across more visa renewals, more organisational restructures and more life events. Immigration compliance exposure increases because the period of regulatory vulnerability is longer. HR teams will need to manage sponsored workers over a materially extended timeframe.
If roles below RQF level 6 are subject to a proposed fifteen-year baseline, as illustrated in the consultation, sectors such as health and social care may experience particular pressure. Retention assumptions built around five-year settlement may no longer hold.
Cost Exposure and Operational Impact
Longer qualifying periods increase both financial and administrative exposure for employers.
A ten-year route means more visa extension cycles and additional Home Office fees. It means extended Immigration Health Surcharge liability. It means a longer period during which sponsor reporting duties apply and audit risk remains live. It also means more extensive evidential requirements when employees eventually reach settlement stage.
Over a decade, organisational change is inevitable. Salaries move. Roles evolve. Working hours fluctuate. Locations change. If settlement eligibility is tied to sustained earnings and a clean compliance record, payroll accuracy and robust sponsor record-keeping become critical to protecting future ILR applications.
Retention and Talent Strategy
Settlement is a key factor in long-term commitment to the UK. Extending and conditioning the route may influence how internationally mobile professionals assess career decisions.
High earners may benefit from accelerated timelines under the proposed income-linked reductions. That may strengthen the offer for senior hires. However, mid-level and lower-paid roles may become harder to market internationally if the route to permanence is perceived as prolonged or uncertain.
HR teams should anticipate increased employee queries about salary progression, maternity leave, benefit use and how temporary life events could affect settlement eligibility under a contribution-based model.
Transitional Uncertainty and Immediate Actions
The most sensitive question now is transitional protection. The consultation asked directly how the new framework should apply to individuals already partway through a five-year route. Ministers have not yet confirmed what, if any, grandfathering or transitional arrangements will apply.
Until draft Immigration Rules are laid before Parliament, the current framework remains fully in force. That said, employers should not wait for formal implementation before reviewing their position.
Practical steps now include:
- Auditing sponsored populations by visa route and length of residence.
- Identifying employees approaching five years’ residence under the current rules.
- Modelling sponsorship cost exposure over a potential ten-year horizon.
- Reviewing pay progression structures where income-linked reductions may become relevant.
- Preparing clear internal communications to manage employee expectations.
Earned settlement is presented as a reform of migrant status. In operational terms, it is likely to affect recruitment strategy, retention planning and workforce stability in sectors reliant on international talent.
The consultation has closed. Policy design now moves into its next phase. For HR leaders, this is the stage at which immigration reform moves from political proposal to practical workforce risk management.
Author
Gill Laing is a qualified Legal Researcher & Analyst with niche specialisms in Law, Tax, Human Resources, Immigration & Employment Law.
Gill is a Multiple Business Owner and the Managing Director of Prof Services - a Marketing & Content Agency for the Professional Services Sector.
