Introduction
The Home Office has published its response to the “A Fairer Pathway to Settlement” consultation (CP 1707, November 2026), confirming a new “Earned Settlement” framework for Indefinite Leave to Remain (ILR). The standard qualifying period doubles from five to 10 years. For many skilled workers, especially those paid below £50,271, that means twice as long waiting for ILR. For their employers, it means twice as long sponsoring them.
Key Takeaways
- 10 years becomes the default. Shorter pathways are available. People earning at least £50,271 in 3 of the last 5 years, eligible health and education public service roles, and people with a recognized British connection can qualify in 5 years. People earning at least £125,141 in 3 of the last 4 years can qualify in 3 years.
- Higher minimum standards apply to everyone. B2 English, a Life in the UK test pass, no UK criminal record of any kind, no outstanding government debt, and sustained earnings of at least £12,571.
- Existing skilled workers are not generally protected. Transitional relief is limited to defined groups.
- The Long Residence route will close. Time on the student and graduate routes will no longer count towards settlement.
- No commencement date has been announced. Changes to the immigration rules and Home Office guidance are still awaited.
What is Changing?
Most sponsored workers currently apply for ILR after five years, or after 10 years via the Long Residence route. Under Earned Settlement, the qualifying period will depend on character, contribution, integration, and residence.
| Issue | Current framework | Earned Settlement (confirmed policy) |
|---|---|---|
| Standard qualifying period | 5 years on most work routes | 10 years by default |
| English language | B1 | B2 |
| Criminality | Mandatory refusal for sentences of 12 months or more, with discretionary refusal for lesser sentences | Refusal for any adult UK criminal record, including cautions, discharges, court fines and community sentences |
| Long Residence route | 10 years of lawful residence on most routes | Route closes, and only qualifying routes count |
Contribution-based pathways. Faster pathways are earned through earnings, public service, or a British connection, not points. Volunteering will not count.
| Pathway | Who qualifies (main routes relevant to business) |
|---|---|
| 3 years | Earnings of at least £125,141 in 3 of the 4 years before applying, or qualifying through the Highest Talent Group (subject to a Migration Advisory Committee review) |
| 5 years | Earnings of at least £50,271 in 3 of the 5 years before applying, working in an eligible health or education occupation paid on national pay scales (for example, doctors, nurses, teachers and social workers), or having a recognised British connection |
| 10 years | Earnings of at least £12,571 in 5 of the 7 years before applying, plus all mandatory requirements |
| 20 years | Applicants who have used specified public funds or committed a qualifying immigration breach |
Existing migrants. Applications will be decided under the rules in force at the date of decision, so being in the UK already gives no right to settle under the old rules.
When Will the New Rules Take Effect?
It is confirmed policy but not yet law. No commencement date has been given, and immigration rule changes and guidance are still to come. The only firm business date is 1 February 2027, for care workers whose sponsor loses its license.
Impact on Sponsored Workers
Many skilled workers earn between the £41,700 general salary threshold and £50,271 and, unless their pay rises, will fall into the 10-year pathway: at least one more extension, five more years of Immigration Health Surcharge, and five more years tied to a sponsor.
Worked examples
- Priya, a skilled worker since 2023, earning £42,000. Under the current rules, she would apply for ILR in 2028. Under Earned Settlement, she reaches the 10-year point in 2033. However, if her pay exceeds £50,271 in 3 of the 5 years before she applies, she qualifies at 5 years.
- Mei, a former student. After a student and then a graduate visa, she switches to a skilled worker. Under the current rules, that earlier time could count towards the 10-year-long residence route. Under Earned Settlement, it will not count.
- Ahmed, a teaching assistant sponsored since 2023. His role is below RQF 6 but on a national pay scale, and he arrived before May 2025, so he keeps a one-off 5-year route.
Dependants. Partners who arrive with the main applicant settle at the same time, but later joiners serve the full period. Children under 18 settle with their parents, and 18 to 24-year-olds can too if they meet the adult requirements other than earnings. Anyone aged 25 or over when the family becomes eligible must qualify independently i.e., a child arriving at 16 will be 26 at the 10-year point.
Impact on Employers
- Longer sponsorship. Doubling the qualifying period roughly doubles the number of years a sponsor pays for and manages each worker.
- More Immigration Skills Charge (ISC). The ISC is paid for every year covered by a Certificate of Sponsorship, so five extra years means five extra years of ISC per worker. The ISC and the Certificate of Sponsorship fee cannot be recovered from the worker.
- Retention and recruitment. Pay around £50,271 now affects how quickly a worker can settle, which will influence pay negotiations and decisions to leave. The 3-year pathway may help recruit senior hires, but overseas candidates for mid-level roles may look to other countries instead.
Cost Analysis
| Cost item | Assumed rate | Usually paid by |
|---|---|---|
| Certificate of Sponsorship | £525 per certificate | Employer (cannot be recovered) |
| Immigration Skills Charge | £1,320 per year (medium or large sponsor) or £480 per year (small sponsor) | Employer (cannot be recovered) |
| Skilled Worker extension (more than 3 years, in the UK) | £1,865 per applicant | Worker or employer |
| Immigration Health Surcharge | £1,035 per adult per year and £776 per child per year | Worker or employer |
The table below compares the total sponsorship cost for a single skilled worker reaching ILR after 5 years with one reaching ILR after 10 years. It assumes one 5-year visa on the 5-year pathway and two on the 10-year pathway, all applied for in the UK at the assumed rates above. The ILR fee is payable on both pathways, so it is excluded, but on the 10-year pathway it is paid later and may be higher by then.
| Cost item (single worker) | 5-year ILR | 10-year ILR | Additional cost |
|---|---|---|---|
| Certificate of Sponsorship | £525 | £1,050 (2 × £525) | £525 |
| ISC (£1,320 per year) | £6,600 | £13,200 (10 years) | £6,600 |
| Visa fees | £1,865 | £3,730 (2 × £1,865) | £1,865 |
| Immigration Health Surcharge | £5,175 (5 × £1,035) | £10,350 (10 × £1,035) | £5,175 |
| Total | £14,165 | £28,330 | £14,165 |
| Total for a small sponsor (ISC £480 per year) | £9,965 | £19,930 | £9,965 |
Compliance Considerations for Sponsors
Sponsor duties, record-keeping, reporting of role and salary changes, and follow-up right-to-work checks will now run for up to 10 years per worker. That raises the cumulative risk of breach and of compliance visits and license suspension or revocation, which could disrupt a workforce still years from settlement. Regular internal audits and well-maintained payroll records (which also support workers’ “best years” evidence) are essential.
Strategic Considerations for Businesses
Map each sponsored worker’s likely pathway against current and projected salary, and build extra ISC, Certificate of Sponsorship, and extension costs into multi-year budgets. Weigh sponsorship against local hiring for roles near the threshold, use the faster pathways to attract senior hires, and consider salary progression towards £50,271 and fee-support or clawback policies to aid retention.
For any enquiries, please contact Shradha via email or telephone:
E: shradhavirji@broadfieldlaw.com
T: +44 (0)20 7783 3093
