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ILR Changes: Full Guide to the New “Earned Settlement” System (2026 Reform Explained)

Written by
Muhammad Usman Rasheed, Deluxe Law Chambers
Date of Publication:

Some migrants to face 20 year wait for settled status

The UK government has announced major reforms to the settlement process—commonly known as Indefinite Leave to Remain (ILR). Under the proposed "earned settlement" model, applicants will need to demonstrate stronger contributions, meet tougher suitability and integration standards, and comply strictly with immigration rules. The consultation on these changes remains open until 12 February 2026, but the direction of policy is now clear: settlement must be earned, not assumed.

Below is a complete breakdown of what these changes mean, who will be affected, and how future ILR applicants can prepare.

What Is Changing Under the New UK ILR System?

The new model introduces a baseline qualifying period of 10 years for most routes, which can then be reduced or increased based on an applicant's character, contribution, integration, residence, and immigration compliance.

In short, applicants will no longer automatically settle after five years. Instead, they must meet strict mandatory requirements and earn reductions through economic contribution, community participation, or high-skilled activity.

The Four Core Pillars of the New ILR System

1. Character

Applicants must meet strict suitability criteria, including:

  • No criminal convictions
  • No immigration breaches
  • No outstanding NHS, tax, or government debt

The government also plans a full review of criminality thresholds with the expectation that any criminal record may bar settlement.

2. Integration

Applicants will need to:

  • Speak English at B2 level (minimum)
  • Pass the Life in the UK Test
  • Potentially earn reductions for C1 English level or community work

3. Contribution

The new system places heavy emphasis on economic contribution, focusing primarily on taxable income. High earnings or key public service roles may shorten the qualifying period.

4. Residence

While lawful, continuous residence is still required, residence alone will not qualify someone for settlement.

Mandatory Requirements for ILR Under the New System

Every applicant must satisfy all core conditions:

PILLARREQUIREMENT
SuitabilityNo criminal record, no government debt, full compliance with immigration rules
IntegrationEnglish at B2, Life in the UK Test passed
ContributionEarned at least £12,570 per year for 3–5 years prior to applying (subject to consultation)

How the New Qualifying Period Works

The baseline ILR qualifying period is:

10 years Baseline ILR Route

This period can be:

  • Reduced by meeting key contribution or integration criteria
  • Increased by past immigration breaches or receipt of public funds

Reductions to the ILR Qualifying Period

Where multiple criteria apply, the largest reduction and largest increase are combined.

PillarAttributeAdjustment to baseline qualifying periods
IntegrationApplicant has competency in English language at C1 Level under the Common European Framework of Reference for LanguagesMinus 1 year
Contribution (Income-Based Reductions)Applicant has earned a taxable income of £125,140 for 3 years immediately prior to applying for settlementMinus 7 years
 Applicant has earned a taxable income of £50,270 for 3 years immediately prior to applying for settlementMinus 5 years
 Applicant has been employed in a specified public service occupation for 5 yearsMinus 5 years
 Applicant has worked in the community (volunteering, etc)Minus 3-5 years
Entry and residence

Applicant holds a permission as the parent/partner/child of a British citizen and meets core family requirements

Not subject to consultation

Minus 5 years

Not subject to consultation

 

Applicant holds a permission granted under the British National Overseas route

Not subject to consultation

Minus 5 years

Not subject to consultation

 Applicant has 3 years continuous residence as the holder of a permission as a Global Talent worker or Innovator FounderMinus 7 years
 Acknowledgement of specific and vulnerable groups having a reductionSubject to consultation

Increases to the ILR Qualifying Period

Note: only one of the listed considerations (i.e. the one that causes the largest increase) would be applied in the case of any single application. This will take precedence over any reduction to the baseline.

PillarAttributeAdjustment to baseline qualifying periods
ContributionApplicant has been in receipt of public funds for less than 12 months during route to settlementPlus 5 years
 Applicant has been in receipt of public funds for more than 12 months during route to settlementPlus 10 years
Entry and residenceApplicant arrived in the UK illegally e.g. via small boat/clandestinePlus up to 20 years
 Applicant entered the UK on a visit visaPlus up to 20 years
 Applicant has overstayed a permission for 6 months or morePlus up to 20 years

Impact on Skilled Workers and Lower-Skilled Routes

Currently, skilled workers can settle after 5 years.

Under the new model:

  • Most skilled workers will face a 10-year baseline
  • Lower-skilled roles (below RQF Level 6) may face 15-year pathways

This is a major shift towards contribution-based settlement.

Dependants and Children: Major Changes Ahead

Dependants will no longer automatically qualify for ILR alongside the main applicant.

  • Adult dependants must meet their own qualifying period and criteria.
  • Children turning 18 during the process may transition to their own ILR route.
  • A grace window may still allow children over 18 to settle with parents.

Special safeguards will continue for children living most of their lives in the UK without immigration status.

Transitional Arrangements

The government is seeking feedback on whether transitional protections should be offered to:

  • Migrants already on a route to settlement
  • Those close to meeting current 5-year ILR rules

This area remains undecided.

What These Changes Mean for Migrants

The new system benefits:

  • High earners
  • Highly skilled workers
  • Public service professionals
  • Those with strong community ties
  • BN(O) and family routes

Those disadvantaged include:

  • Lower-paid workers
  • Migrants who have relied on public funds
  • Anyone with immigration breaches
  • Dependants without income or employment
  • Skilled workers expecting 5-year ILR under current rules

Planning ahead will now be essential.

Final Thoughts: Preparing for the New ILR System

The UK's proposed earned settlement system represents the biggest change to ILR in decades.

Migrants will need to demonstrate:

  • High levels of compliance
  • Economic contribution
  • Strong integration
  • Long-term commitment to UK society

With the consultation closing in February 2026, the final rules will become clearer thereafter—but the direction is unmistakable: settlement will become harder, longer, and more contribution-focused.

The consultation survey will remain open until 23:59 on 12 February 2026. If you have any questions about the consultation, these should be directed towards the Settlement Consultation Team: earnedsettlementconsultationqueries@homeoffice.gov.uk. For technical questions about the survey, please contact the Managed Migration Research Team, with "Earned Settlement Consultation Survey" in the subject line, at: managed_migration_research@homeoffice.gov.uk.