Proposed changes to the way people obtain Indefinite Leave to Remain (ILR or permanent residence) in the UK represent a major shake-up to the pathway for almost all visa holders.
The changes are set out in a recent UK government consultation and introduce an ‘earned settlement’ model. The government is suggesting these provisions will apply to everyone who is in the UK today and does not already have ILR.
This means they might affect you or your family, even if you are currently on a route to settlement. The proposals are not a definite statement on precise changes to the law, but the government says it intends to start changing the law with effect from April 2026.
Here’s a summary of the most important changes – if you have specific questions, please reach out to us.
ILR baseline increasing from 5 to 10 years
The government intends to create a baseline qualifying period for ILR of 10 years – double the current 5 years. This will be the starting point for all applicants, apart from those under the EU Settlement or Windrush Schemes. The baseline can then be adjusted up or down depending on a number of factors.
Minimum requirements
The government plans to expand the minimum requirements for ILR. These do not alter the baseline time-frame and will be standard requirements for everyone. The following are not subject to the consultation:
• Suitability: the general refusal grounds already exist. Applicants also must not have any debt (debt has not yet been defined here, but we understand it to include NHS, litigation and tax debts).
• Integration: the English language requirement for ILR is being raised from level B1 to B2. Individuals must continue to pass the Life in the UK Test.
• A third minimum requirement is being considered and is subject to consultation – Contribution: each applicant must have made National Insurance contributions by way of income of over £12,570pa for the last 3 to 5 years. This would apply also to dependants.
Baseline adjustments
As part of the consultation, the government has identified factors which can result in the 10-year baseline being adjusted up or down. The following will adjust the baseline down – only the one that leads to the greatest reduction will be applied:
| Integration | English language at level C1 | 1 year reduction |
| Contribution | Taxable income of £125,140 for the 3 years before applying* | 7-year reduction |
| Taxable income of £50,270 for the 3 years before applying* | 5-year reduction | |
| Employed in a specified public service occupation for 5 years | 5-year reduction | |
| Worked in the community, for example volunteering | 5-year reduction (not subject to consultation) | |
| Entry and Residence | Applicant has a visa as the parent, partner or child of a British citizen | 5-year reduction (not subject to consultation) |
| Applicant has a visa under the British National (Overseas) route | 5-year reduction (not subject to consultation) | |
| Applicant has 3 years under the Global Talent or Innovator Founder routes | 7-year reduction |
* Taxable income is normally defined as an individual’s gross earnings, minus the tax-free personal allowance of £12,570.
The following factors will increase the baseline – only the one resulting in the largest increase will be considered:
| Contribution | In receipt of public funds (benefits) for less than 12 months (during the route to ILR) | Up to 5-year increase |
| In receipt of public funds for more than 12 months (during the route to ILR) | Up to 10-year increase | |
| Entry and Residence | Arrived in the UK by irregular means, for example small boat | Up to 20-year increase |
| Entered the UK on a visit visa | Up to 20-year increase | |
| Overstayed visa by 6 months or more | Up to 20-year increase |
Impact on dependants
Currently, dependants of work visa-holders can typically apply for ILR with or after the main applicant when they meet the relevant residence requirement for their route.
The proposed changes anticipate that adult dependants of work visa-holders will have to meet ILR requirements according to their own attributes and circumstances. All dependants, including dependent children, will still only be able to apply for ILR with or after the main applicant.
Transitional provisions
The government proposal is that these provisions will apply to everyone in the UK with immigration permission who does not already have ILR. The government is seeking input on whether there should be transitional provisions for individuals who are already in the UK – we feel very strongly that these changes should only apply to new arrivals here.
Removing recourse to public funds for those with ILR
The consultation also suggests that access to public funds should no longer be allowed to those who are granted ILR and should instead be held back until British citizenship is granted.
What should you do next?
You could consider taking these actions now to help mitigate the impact:
• Contribute to the consultation response – here is the link for submitting your response. Our firm will be submitting a response and if you would rather give us some feedback to include in that, please let us know. The deadline is 12/02/2026.
• You could coordinate with others in your sector or your community to submit a joint response. The more responses the government receives, the more influence we might all have.
• Apply for ILR as soon as you are eligible under the current rules. Bear in mind that you may become eligible some time before the end of your current visa.
• If you have already lived in the UK lawfully for 10 years on any visa, you may be eligible for ILR on the 10-year Long Residence basis. That route is expected to close around April 2026.
• If considering applying for ILR, book a Life in the UK Test appointment. We understand there is increased demand for test appointments.
• If you have ILR, consider applying for British citizenship as soon as you are eligible. The citizenship rules are likely to make that harder in future. Of course, applying for British citizenship is not for everyone and you will need to look at whether your home countries allow dual citizenship.
• Consider a spousal visa: if you are married to, or an unmarried partner of, a British citizen and will be affected by the changes, you may want to consider switching to a spousal visa. The plans suggest that those on spousal visas with a British partner, will remain on a 5-year path to ILR. Switching to the spousal visa will however reset your track to ILR and may not be necessary if the government does implement transitional provisions for individuals who are currently in the UK.
Longer term considerations
Consider community service/volunteering as that may be rewarded with a reduction in the required ILR period.
Work on your English language competence: aim for level C1 to potentially earn a 1-year reduction.
• Be aware that claiming benefits (public funds), having tax irregularities or a criminal record may significantly increase your ILR timeframe or even stop it entirely.
How Can We Help You?
If you have any immediate concerns, please get in touch and we will be happy to help.
We are happy to assist our clients with responses to the consultation or advice on specific employees or their families. We will be holding a series of webinars on these planned changes over the coming weeks and months and will be in touch with details shortly.