The Government has already proposed extending the standard qualifying period for settlement from five years to ten years under its wider “earned settlement” reforms. That direction was set out in the Immigration White Paper and developed further in the Home Office’s earned settlement consultation published in November 2025. The consultation closed on 12 February 2026, and the Government is currently reviewing the responses it received before confirming the final shape of the policy.
In an interview with The Times, published on 1 March 2026, the Home Secretary was reported to have made clear that she intended to press ahead with the ILR reforms, that the changes would apply to those already in the UK who had not yet secured ILR, and that the law would be changed in the autumn. According to the report, she said the reforms were necessary because of the “historically large numbers” who had arrived since 2021.
The Home Office said last week that it had received more than 200,000 responses to the earned settlement consultation, underlining the level of interest and concern surrounding the proposals. While the Government has not yet published its formal consultation response or the Immigration Rules needed to implement the full new system, the interview is an important indication of ministerial direction following the close of consultation.
This points to a potentially significant policy shift, particularly for migrants and employers who have planned on the basis of the long-established five-year route to settlement.
What appears to be changing
Based on the Government’s published proposals, together with the Home Secretary’s reported comments in that interview, the direction of travel now appears to be that:
- the standard qualifying period for settlement for many migrants would increase from five years to ten years; and
- the Government intends those changes to affect individuals already in the UK who are still progressing towards settlement, although the detail of any transitional arrangements has not yet been formally published.
The consultation also makes clear that the Government is considering whether some applicants may qualify more quickly through an “earned settlement” model, based on factors such as economic contribution, public service or wider contribution to UK society. Some categories may also continue to benefit from shorter settlement routes.
Retrospective effect remains a key concern
One of the most important issues for employers and individuals is the likely effect on those already in the UK and on a route that currently leads to settlement after five years.
Although the Government has not yet published its formal consultation response or final transitional provisions, the reported direction of travel is significant. If that approach is reflected in the final rules, it would have important consequences for workers and families who have structured their long-term plans around the current five-year route, as well as for employers who may need to support sponsored workers for longer than previously expected.
Implications for employers
Although the changes are not yet in force, employers may wish to start planning now.
1. Longer sponsorship commitments
Workers who expected to qualify for ILR after five years may need sponsorship for a longer period. That could increase:
- ongoing sponsor compliance obligations;
- visa extension costs; and
- potential Immigration Skills Charge exposure.
2. Workforce planning pressures
Businesses with larger sponsored populations may need to reassess medium-term workforce planning, particularly where overseas recruitment forms an important part of talent strategy.
3. Recruitment and retention impact
A longer route to settlement may reduce the attractiveness of UK roles for some international workers, especially where alternative jurisdictions offer quicker or more certain long-term residence options.
4. Uncertainty for employees already in the UK
Where workers are approaching the current five-year threshold, uncertainty around transition may create anxiety and increase attrition risk if employers are not communicating clearly.
What employers may wish to do now
Pending formal implementation, employers may wish to:
- identify sponsored workers who may become eligible for ILR under the current rules before any future changes take effect;
- encourage eligible employees to consider settlement applications promptly where appropriate;
- factor longer sponsorship periods and related costs into workforce and budget planning; and
- begin early conversations with affected employees to manage expectations and reduce uncertainty.
What we are still waiting for
At the time of writing, we are still awaiting:
- the Government’s formal response to the earned settlement consultation;
- confirmation of the implementation timetable for the new settlement framework;
- publication of the final Immigration Rules; and
- clarity on the operation of any transitional arrangements or accelerated settlement criteria.
Final thought
The key point for employers is that this is no longer just theoretical. The Government has already set out a clear policy intention to move towards a longer route to settlement, and the Home Secretary’s reported comments suggest that ministers intend to proceed with legislation in the autumn and to apply the changes to those already in the system. While the final legal framework is still awaited, organisations with sponsored workers should be thinking ahead now.
Contact us
For a deeper discussion about the above, or for advice on how these proposals could affect your workforce, please contact a member of our immigration team.
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