The Pathway to UK Settlement: An Overview of the Proposed Changes

Authors: Flora McCarthy and Yuichi Sekine

The Home Office recently published its proposals on the route to settlement in the UK, moving from a ‘time served’ route to one where the right to settle is ‘earned’. If implemented, these changes will increase the baseline continuous qualifying period of residence in the UK from 5 years to 10 years, which could be increased or decreased by a number of factors. These changes are proposed to apply to most applicants, including those who are already on the pathway to settlement. In a significant divergence from the current settlement pathway, the consultation proposes that those granted settlement under the new route may have no access to public funds, with this reserved for those with citizenship.

The Home Office has launched a consultation, seeking to gain feedback from all parties affected, which will run for 12 weeks, closing at 23:59 on 12 February 2026. The Home Office particularly welcomes views on how the proposals may apply to children and dependants, the effect of the changes on vulnerable groups and how transitional arrangements may be used for those already on the route to settlement. Whilst the proposals are not final, these are substantial changes that could significantly impact the pathway to permanent residence in the UK.

The Four Pillars of Earned Settlement

The proposed system is built on four pillars, designed to ensure that applicants make a meaningful contribution to the UK society: character, integration, contribution and residence. The factors considered within each of these pillars can be further separated into two distinct stages: mandatory requirements, and those which can increase or decrease the baseline qualifying period of residence required to settle.

Mandatory Requirements

Under the proposals, all applicants seeking to gain settled status in the UK will first need to meet all the ‘mandatory requirements’ as listed below. Failure to meet any of the ‘mandatory requirements’ would render the applicant ineligible for settlement in the UK. The ‘mandatory requirements’ are as follows:

• Suitability (character): applicants must meet the suitability requirements from the Immigration Rules e.g. no criminal conviction, and have no government debt
• Integration: applicants must show that they have English language proficiency at CEFR level B2, and must pass the ‘Life in the UK’ test
• Contribution: applicants must have annual earnings above £12,570 for minimum 3-5 years 

The Baseline Qualifying Period

In addition to meeting the ‘mandatory requirements’, the applicant will be subject to a baseline qualifying period to settlement. This is the minimum number of continuous years they must have resided in the UK before they can apply for ‘settled status’. Under the proposals, the baseline qualifying period for settlement will increase from the current 5 years to 10 years. This 10-year baseline can be adjusted upwards or downwards by various considerations falling within the four pillars. 

Accelerators: Reducing the Qualifying Period

Where more than one consideration applies, only the largest reduction will be applied. The proposed reductions include:

• English Language at CEFR C1 Level – minus 1 year

• Earned taxable income of £125,140 for 3 years immediately prior to applying for settlement – minus 7 years

• Earned taxable income of £50,270 for 3 years immediately prior to applying for settlement – minus 5 years

It is proposed that highly skilled individuals, such as those on the Global Talent or Innovator founder routes, will benefit from a reduction of 7 years, allowing them to continue to settle after 3 years, recognising their contribution of skill to the UK.

Decelerators: Increasing the Qualifying Period

Where more than one consideration applies, only the largest increase will be applied. The proposed increases include:

• Receipt of public funds for less than 12 months during route to settlement – plus 5 years

• Receipt of public funds for more than 12 months during the route to settlement – plus 10 years

• Arriving in the UK illegally, entering on a visitor visa, or overstaying permission for 6 months or more – plus up to 20 years

The consultation is additionally seeking views on whether Skilled Workers in roles below RQF Level 6 should be subject to a baseline qualifying period of 15 years. This would mean a separate, higher baseline of 15 years for this group, rather than the standard 10-year baseline.

A full list of increasing and decreasing factors can be found in the consultation document.

Children and Dependants

Under the current system, dependants of economic migrants are able to qualify for settlement at the same time as the economic migrant themselves. The new proposals seek to change this, requiring dependants to earn settlement in their own right, meaning they would not enjoy the same qualifying period - it could be longer or shorter according to their own attributes and circumstances. However, it remains the case that a dependant will only be eligible to settle where the main applicant also qualifies.

The consultation also seeks views on how an ‘earned settlement’ system could apply to children, particularly those granted permission as a dependant child who turn 18 during their parents’ qualifying period. It is suggested that there may be a window whereby those individuals may be granted settlement at the same time as their parents, with a cut-off point after which they will need to earn settlement in their own right.

Impact on Skilled Workers & Families

Under the Government’s ‘Earned Settlement’ proposals, Skilled Worker migrants may see timelines adjust based on taxable earnings. Those who have earned £125,140+ in each of the three years before applying would receive a seven‑year reduction from the new 10‑year baseline, enabling settlement in three years (as opposed to today’s five‑year route). Skilled Workers earning £50,270+ would receive a five‑year reduction, maintaining a five‑year path, meaning they are not disadvantaged by the reform. 

That said, the proposals are likely to raise serious compliance and cost implications for sponsored workers who do not meet settlement criteria at year five. Those workers will need to maintain sponsorship for a longer duration until they become eligible. 

Next Steps

It is important to emphasise that the proposals are not yet finalised, and all information in this article is subject to consultation. The Home Office is seeking feedback from all parties affected by the proposed changes through its consultation which is running for 12 weeks, closing at 23:59 on 12 February 2026.

Our Business Immigration team will be closely monitoring developments and will issue updates as proposals are finalised. If you have any questions about navigating these proposed changes or how they may affect your settlement pathway, please do not hesitate to contact our Business Immigration team who will be happy to provide guidance.