United Kingdom: Government Paper Sets Out Indefinite Leave to Remain Reforms and Launches Consultation

The situation

The UK government has published a paper setting out its proposals for Indefinite Leave to Remain (ILR) reforms and launching an associated consultation. The consultation will be open for submissions until February 12, 2026.

A closer look

• ILR timeline doubled for most immigrants. Most individuals will be subject to a new standard 10-year qualifying period, which is double the current five years.
• Other ILR timelines. The paper sets out other ILR qualifying periods for the following categories:
  • Lower-skilled roles. Those with skills below Qualifications Framework Level (RQF) Level 6 will qualify after 15 years.
  • Refugees. Refugees under core protection routes will qualify after 20 years.
  • Accelerated routes. Global Talent, Innovator Founder and foreign nationals under comparable accelerated routes will still be able to qualify after three years.
  • BN(O) category and Partners and Children of British Citizens. Those in the United Kingdom under the British Nationals (Overseas) category or as partners or children of British citizens will still be able to qualify after five years.
• Potential changes in qualifying periods. Applicants may, however, be able to shorten (or be subject to longer) ILR qualifying periods if they meet, (or fail to meet), earnings or integration benchmarks. For example:
  • High earners. Those with taxable incomes (not just salaries) over GBP 50,270 will qualify after five years; those with income over GBP 125,140 will qualify after three years.
  • Public Service Employees.   Those who have worked a minimum five years in specified public-service roles (e.g. health, education, emergency services) will qualify after five years.
  • Civic volunteers. will enable applicants to apply for ILR after between five to seven years.
  • Advanced degree level English (C1) proficiency. Those able to speak high level English could apply for ILR after nine years.
  • Increased qualifying period. In contrast, those who claim public benefits for more than 12 months could have a further 10 years added to their qualifying period; and those who breach immigration laws could have anywhere between five to 10 years added to their qualifying period.
• New mandatory conditions to qualify for ILR. The paper sets out four new mandatory eligibility requirements (that are not subject to consultation) that all applicants over 18 will need to satisfy to qualify for ILR based on: Character, Integration, Contribution and Residence. The contribution requirement includes annual earnings of at least GBP 12,570 for a minimum of three to five years.

Background

These reforms reflect the government’s ambition to make contribution a condition for settlement; and elevate the status to one that must be earned, rather than one accorded automatically. The rule changes’ proposed aim is to reward those who are considered high contributors while penalising those who are not. The declared reason is to assist and encourage integration, manifest control and limit access to public funds to those cohorts who have put more into the system than taken out.  

Impact

• Consider consultation response. Employers with foreign employees should review the proposals and consider whether their organisation wishes to respond to the consultation, especially in areas such as earnings thresholds, dependants and the treatment of lower-skilled workers.
• Review workforce and budget planning. Employers should identify employees who may benefit from accelerated routes (e.g. those earning GBP 50,270+) and should assess cost implications where longer sponsorship or residence may be required (e.g. RFQ 4–5 roles, and health & care workers).
• Revisit sponsorship policies. Employers should consider projecting likely earnings three years ahead to maximise eligibility for high-earner reductions and early ILR.
• Evaluate dependant policies. Since dependants would be assessed individually for ILR, employers should note that household composition and income may affect overall settlement outcomes. This could be one of the most critical areas for workforce planning, especially for those with children who will turn 18 during the lifecycle of a visa. Under the new rules, this could mean a main applicant qualifying at five years but a partner qualifying later if no qualifying period discounts apply (or not at all if the mandatory pillars are not met). Children would follow the second parent, meaning that if they turn 18, they may be required to meet the mandatory pillars, which include an earnings requirement. It is critical that government hear from employers and business about the impact to families (and therefore knock-on impact to businesses)

Looking ahead

Businesses should submit responses during the consultation period if they want to present any concerns or highlight potential impacts of the proposals to their employees and businesses. The reforms can be implemented through Statements of Changes, and therefore quickly after the consultation period ends. Once implemented, they will be difficult to reverse. Either way, the proposals represent a watershed change of the United Kingdom’s immigration architecture.

Fragomen can assist employers with submitting responses to the consultation. This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen.