Government Announces Major Changes to the Settlement System

The Home Secretary has announced a wide-ranging set of proposals that would significantly reshape the route to settlement in the UK. Addressing MPs, she stated that “to settle in this country forever is not a right, but a privilege, and it must be earned.” The proposed changes aim to introduce a contribution-based model, placing greater emphasis on character, integration, financial contribution, and length of residence.

Below is an overview of the key proposals:

1. Longer Minimum Residence for ILR

The most substantial change is the extension of the minimum qualifying period for Indefinite Leave to Remain (ILR). A new 10-year baseline to qualify for settlement, doubling the current 5-year requirement. Applicants will also need to meet new minimum standards, including:

  • A clean criminal record
  • English language at CEFR A1 level
  • “Sustained” national insurance contributions
  • No outstanding debt in the UK

2. Contribution-Based Reductions to the 10-Year Baseline

While 10 years will be the default, some applicants may qualify earlier depending on their economic contribution, integration, or public service:

  • English speakers at degree level: eligible after 9 years
  • Higher-rate taxpayers: eligible after 5 years
  • Additional-rate taxpayers: eligible after 3 years
  • Public service workers (e.g., doctors, nurses, teachers): eligible after 5 years
  • Volunteers: eligible between 5–7 years
  • Global Talent or Innovator Founder visa holders resident for at least 3 years: eligible after 3 years

Certain groups will retain their current routes, which includes Partners of British citizens, British Nationals Overseas from Hong Kong, and the EUSS and Windrush applicants.

3. Longer Routes for Some Applicants

Some categories may face significantly extended qualifying periods:

  • Those who received benefits for under 12 months: 15-year pathway
  • Those who received benefits for over 12 months: 20-year pathway
  • People who arrived illegally: may face a 30-year wait
  • Refugees on “core protection”: 20-year route (with potential reductions if switching to work or study visas)
  • Health and Social Care visa holders (from 2021) and their dependants: 15-year route

4. Restriction on Access to Benefits

A further proposal would limit access to public funds. Benefits may be restricted to British citizens only, meaning migrants who obtain settlement under the new system may not automatically be entitled to public funds. Refugees will retain access to public funds, subject to new conditions announced in the recent asylum statement.

5. Criminality Requirements

The Home Secretary has emphasised that settlement should be available only to those who maintain good character. A clean criminal record will be required. Further work will determine the exact threshold, building on earlier rules that lowered the deportation threshold.

Our comment

The proposals form part of the government’s broader Immigration White Paper. The new “Earned Settlement” system is built on four pillars: Character, Integration, Contribution and Residence.

Under current rules, most migrants become eligible for settlement after five years with relatively few conditions and can access public funds shortly afterward. Citizenship may then be applied for a year later. The new system seeks to make settlement more conditional and to separate it more clearly from the rights associated with British citizenship.

Transitional provisions for those already in the UK will be provided following a formal consultation. However, the current intention is that anyone who has not yet been granted settlement when the new rules take effect will fall under the contribution-based model. Those who already hold settled status will not be affected.

If you have concerns regarding how these proposed reforms may impact you, please contact our experts for tailored advice.

Disclaimer: The information in this blog is for general information purposes only and does not purport to be comprehensive or to provide legal advice. Whilst every effort is made to ensure the information and law is current as of the date of publication it should be stressed that, due to the passage of time, this does not necessarily reflect the present legal position. Privity Legal and authors accept no responsibility for loss that may arise from accessing or reliance on information contained in this blog. For formal advice on the current law please don’t hesitate to contact Privity legal. Legal advice is only provided pursuant to a written agreement, identified as such, and signed by the client and by or on behalf of Privity Legal.

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