Reforms to settlement rules favour some

The UK government has announced a far-reaching consultation on earned settlement rules aimed at transforming the immigration system. The Immigration White Paper released in May 2025 had anticipated this update, yet Alex Finch, Business Immigration Partner at Constantine Law, highlighted that today's statement is more comprehensive than expected. He stated, “These proposals are a bold attempt to meet the political moment. Given the magnitude of the changes, it is notable that there is no foreword from the Prime Minister.”

The new proposals introduce a major overhaul of the current settlement system, which will affect a range of migrant groups. Finch remarked that the plans necessitate a "fundamental re-engineering" of the UK immigration framework, indicating that some changes will require primary legislation and input from Parliament. Key points in the statement include provisions that protect specific cohorts, such as family members of British citizens and individuals on the Hong Kong BNO visa scheme, who will retain their five-year pathway to settlement. The Home Secretary, Shabana Mahmood, firmly rejected proposals from Reform aimed at revoking settlement from individuals who have already been granted it, labelling such ideas as “un-British”.

The proposals will extend the new settlement rules to all individuals on a temporary pathway, creating challenging scenarios for current migrants. Concerns have been raised regarding the influx of workers arriving under the Health and Care visa from 2022, their dependants being labelled as “likely to present significant fiscal costs to the UK.” For this group, the government is considering a considerable extension of the settlement qualifying period to 15 years, creating uncertainty for many.

One of the central proposals involves a ‘time adjustment’ model, establishing a baseline qualifying period of 10 years; however, this could be adjusted based on individual circumstances. Finch cautioned that this would create both winners and losers within the new system. Additionally, the criteria for settlement will include a requirement for applicants to achieve a B2 level in English and not have a criminal conviction while also passing the Life in the UK test.

Notably, a new income contribution requirement is proposed, which may stipulate that applicants have annual earnings of over £12,570 for a minimum of 3 to 5 years. If an applicant earns a taxable income of at least £125,140 over three years, they can potentially reduce their settlement timeline to just three years. Conversely, being in receipt of public funds at any point may increase the settlement period, a provision that predominantly impacts low-income households.

The ramifications of these proposals extend to families, raising complex policy questions. Currently, a child under 18 can accompany a migrant worker, qualifying for settlement after five years if they remain dependent. However, changes extending the settlement period to 10 or 15 years may delay their qualification until they are significantly older, potentially altering the existing family dependency concept.

Finch summarised, “These proposals will produce winners and losers. For many, there will be unwelcome news in that the government clearly proposes to apply the new rules to those already in the UK.” While higher earners may benefit from a more straightforward path to settlement, those in lower-paid roles could face extended wait times of up to 15 years. He further noted that the proposals intensify the emphasis on individual contributions, which can obscure the realities of family migration dynamics. The question remains whether the income criteria would similarly apply to a high earner's spouse and children, adding a layer of complexity to an already intricate system.