Immigration reforms: upcoming and recent developments

Since the Government’s pledge to “restore control to our borders”, the immigration rules have been amended and far-reaching changes to the indefinite leave to remain (ILR) regime have been proposed in the form of so-called “earned settlement”. We now await clarity from the Government, likely in the form of a statement of changes to the immigration rules in March 2026. 

Under the proposals, sponsored workers could face a longer route to ILR. This will increase the total period of required sponsorship with an increase in the associated costs, compliance obligations, and the administrative burden for employers. Given that the most highly skilled migrants are the most globally mobile, employers will likely also find it harder to recruit and retain the best talent as individuals may now prefer to look to other countries rather than the UK.

Earned Settlement: key points

• Longer qualifying period and tightening of eligibility: an increase from the current, typical five-year qualifying period to a ten-year baseline qualifying period (BQP) alongside the abolition of the ten-year long-residence route (which allows combining periods of lawful residence spent under various visas). Other mandatory requirements include attaining annual earnings of at least £12,570 over three to five years, maintaining English language proficiency at level B2 (rather than B1), and complying with suitability requirements (including having no criminal convictions and no NHS, tax, or other Government debts).
• Adjustments to the BQP: the BQP would be adjusted upwards or downwards under the “pillars” of “Integration”, “Contribution”, and “Entry and residence” (with only one consideration under each pillar being applied, and increases taking precedence over any reduction to the BQP). Higher taxable income could preserve a five‑year qualifying period or reduce it to three years (taxable income in the three years prior to the ILR application above £50,270 reduces the BQP by five years, and taxable income of £125,140 reduces the BQP by seven years). Global Talent and Innovator Founder visa holders would also benefit from a seven-year reduction to BQP. Receipt of public funds increases the BQP by five or ten years (depending on whether the receipt has been for more or less than 12 months).
• Extended BQP for lower-skilled roles: sponsored skilled workers in occupations below RQF 6 (i.e. degree level) could face a longer BQP of 15 years (subject to increases or reductions under the pillars). This is particularly relevant for skilled workers who came to the UK before July 2025, when the minimum skill level for sponsorship was RQF 3 (i.e. A‑level).
• Dependants: the BQP for adult dependants would be determined according to their own attributes and circumstances rather than the main applicant’s status. The policy acknowledges that many requirements of the earned settlement model cannot be met by child dependants, but refers (without detail) to those who turn 18 during their parents’ qualifying period being covered by earned settlement principles.
• Conditions: settlement could be subject to a “no recourse to public funds” condition, essentially continuing visa conditions through to citizenship.
• Application to all? A key question is whether the proposals would affect those already in the UK or just those who move to the UK after the changes have been enacted. During a recent parliamentary debate, the Minister for Migration and Citizenship confirmed the Government’s intention to proceed with earned settlement and that its application to those in the UK is under consultation but with no assurances about any transitional provisions.

Overall, the proposals have resulted in significant opposition and concerns from migrants and organisations, with many calling for the proposals to be withdrawn. Unfortunately, there is a lack of clarity and detail.  For now, we just have to wait and see.

The broader direction of travel

The proposed earned settlement framework sits alongside various other measures.  By way of reminder, key changes are:

• Increase to the minimum skill level for sponsorship: since 22 July 2025, the starting point is that roles must be at the degree-level (RQF 6) to be eligible for sponsorship. Sponsored skilled workers within the UK with permission granted prior to July 2025 benefit from transitional provisions allowing extensions and changes of employment. There are also exceptions to the RQF 6 requirement where a role is included on the Immigration Salary List or the Temporary Shortage List.
• English language requirement: from 8 January 2026, the minimum level of English proficiency for skilled workers increased to level B2 (up from B1).  Adult dependants are now also subject to the English language requirement (level A1 on entry, level A2 on extension, and level B2 for ILR).
• Immigration skills charge: increased by 32% from 16 December 2025 (now £1,320 per year for large sponsors and £480 per year for small/charitable sponsors).
• Immigration lists: a shorter Immigration Salary List (formerly the Shortage Occupation List) of occupations where a lower salary can be paid and the introduction of a Temporary Shortage List with lower skilled roles (but time-limited and no salary discounts).  The Government intends to phase out the lists with review by the Migration Advisory Committee anticipated by July 2026.
• Dependant and social care restrictions: sponsored skilled workers in roles below RQF 6 may no longer bring dependants to the UK (with exceptions for sponsored skilled workers who have held continuous leave since before 22 July 2025, or 11 March 2024 in the case of care workers). The care worker route has closed to new applicants overseas but switching and extension of permission is allowed for those already in the UK.
• Graduate route: graduate visa holders have always been expected to switch to the sponsored skilled worker route. From 1 January 2027, graduate leave to remain will be limited to 18 months (currently two years) meaning sponsorship will be required earlier. There will be no change for graduates with a PhD, who will continue to benefit from three years’ leave to remain.

Overall, employers are faced with a regime that has become more restrictive, more costly, and significantly more complex to navigate.  Recruitment and retention of talent is likely to be negatively impacted.  Even if high‑earning sponsored skilled workers are able to settle in the UK, they may have a dependant partner and children who could have a longer BQP and additional conditions to satisfy. Where employers can attract the right candidate, they may find that they have to sponsor them for much longer. With Home Office data indicating that sponsor compliance visits and enforcement actions have increased significantly, employers need to not only remain alert and prepare for changes to the immigration rules but also ensure that sponsor compliance remains a priority.

If you would like to discuss what these changes mean for your organisation or have any queries, please contact Lizzie Field, or another member of the Immigration & Employment team.