Contribution-based system could shorten or lengthen residency timeline depending on income, skills and public funds usage
London, November 21, 2025
The UK government has proposed major changes to how legal migrants qualify for settled status (Indefinite Leave to Remain), suggesting an increase in the baseline residency requirement from five years to ten years for many visa routes. The plans are part of a public consultation that will run until 12 February 2026 before any final decision is made.
Table of Contents
Currently, most legal migrants can apply for settlement after five years of continuous lawful residence. Post-Brexit immigration reforms and rising pressure on public resources have led policymakers to reassess the pathway to permanent residency. The government has outlined a new model called “Earned Settlement”, aimed at rewarding contribution to the economy and reducing long-term reliance on public benefits.
Key Developments Announced
The consultation proposes a new framework in which:
- The baseline settlement period increases to 10 years for many visa routes
- The timeline may be shortened or lengthened depending on individual performance and contribution
- A points-style assessment may factor in:
- Economic contribution
- Income level
- English proficiency
- Criminal record status
- History of state benefit claims
These changes are not yet legally final and could evolve based on feedback and parliamentary approval. The government has indicated an intention to implement reforms from April 2026, but this is dependent on consultation outcomes.
Expert Opinions
Immigration analysts note that the new model reflects a major policy shift from “time-based residency” to “contribution-based residency”.
Legal professionals observe that the proposals could create greater clarity for high-skilled workers but introduce uncertainty for those in lower-paid sectors. Employers in health care, hospitality and logistics have expressed concern that longer settlement timelines could impact worker retention.
Specialists emphasise that transitional protections for migrants already on the path to settlement will be critical for maintaining fairness and avoiding sudden disruption.
Impact on Public and Industry
If implemented, the proposals would influence:
🔹 Skilled workers and international professionals – who may qualify faster based on income and sector
🔹 Care and low-paid workers – who could face longer residency requirements
🔹 Students planning long-term residency – as their future eligibility may depend on earnings after graduation
🔹 Refugees and humanitarian applicants – whose settlement pathway may be restructured under a separate model
Certain groups — including EU Settlement Scheme holders and dependants of British citizens – are explicitly out of scope and will remain under current rules.
In the short term, the proposals may create planning uncertainty for both migrants and employers. In the long run, the system may reshape the UK’s competitiveness for global talent.
Policy observers stress that the balance between attracting talent and controlling migration will be central to the public debate.
“A contribution-based model is a major shift in settlement policy. Clear guidance and transitional protections are essential if the new system is to maintain fairness and public confidence,” said an immigration analyst.
Future Expectations
The following developments are expected:
- Stakeholders – including businesses, community groups and affected migrants — can submit feedback until February 2026
- The government is expected to publish a final announcement after reviewing consultation responses
- Clarification will be issued on:
- Transitional arrangements for migrants already in the UK
- Visa categories affected
- Rules for faster and slower settlement routes
Until then, the five-year settlement rule remains in force for eligible visa holders.
Conclusion
The UK’s “Earned Settlement” proposals signal a major transformation to the immigration system, shifting the focus from duration of stay to economic and social contribution. While the final outcome will depend on the consultation process, many migrants and employers could soon have to reassess long-term residency plans.
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