The Home Office’s 12-week consultation on ‘earned settlement’ – the biggest rethink of Indefinite Leave to Remain (ILR) rules in a generation – closed on 13 February with a record 130,000 submissions. Home Secretary Shabana Mahmood told the Commons Home Affairs Committee that officials are analysing proposals to double the standard qualifying period from five to ten years and introduce a points-style system rewarding higher salaries and tax contributions.
Legal and business groups, including the Law Society and the CBI, warned against retroactive application to migrants already on the ILR pathway, arguing this would undermine the UK’s attractiveness to global talent. They also question whether tying settlement to earnings alone overlooks vital but lower-paid roles in social care and the creative industries.
![‘Earned Settlement’ consultation closes after 130,000 responses, major overhaul to ILR route expected]()
For organisations seeking clarity amid the uncertainty, VisaHQ offers real-time advice on ILR pathways and all other UK immigration categories, streamlining paperwork and submission deadlines for both employers and individual applicants. Their dedicated UK hub can be accessed here: https://www.visahq.com/united-kingdom/
For employers the stakes are high. ILR is a key retention tool, reducing ongoing sponsorship costs and giving employees the security to put down roots. If the qualifying period is extended, companies may need to budget for an additional five years of Immigration Health Surcharge and visa-extension fees per employee – roughly £10,000 for a family of four. Some firms may revisit the balance between permanent transfers and short-term project rotations.
The government argues that a longer route and contribution-based criteria will incentivise integration and reduce pressure on housing. Draft legislation is due “before the summer recess”, with transitional arrangements a likely flash-point. Mobility teams should track the final policy closely and communicate potential cost uplifts to finance stakeholders.
Legal and business groups, including the Law Society and the CBI, warned against retroactive application to migrants already on the ILR pathway, arguing this would undermine the UK’s attractiveness to global talent. They also question whether tying settlement to earnings alone overlooks vital but lower-paid roles in social care and the creative industries.
For organisations seeking clarity amid the uncertainty, VisaHQ offers real-time advice on ILR pathways and all other UK immigration categories, streamlining paperwork and submission deadlines for both employers and individual applicants. Their dedicated UK hub can be accessed here: https://www.visahq.com/united-kingdom/
For employers the stakes are high. ILR is a key retention tool, reducing ongoing sponsorship costs and giving employees the security to put down roots. If the qualifying period is extended, companies may need to budget for an additional five years of Immigration Health Surcharge and visa-extension fees per employee – roughly £10,000 for a family of four. Some firms may revisit the balance between permanent transfers and short-term project rotations.
The government argues that a longer route and contribution-based criteria will incentivise integration and reduce pressure on housing. Draft legislation is due “before the summer recess”, with transitional arrangements a likely flash-point. Mobility teams should track the final policy closely and communicate potential cost uplifts to finance stakeholders.
