The Government plans to replace the current arrangements for settlement in the UK with an earned settlement model. Proposals include new mandatory minimum criteria and a general 10-year baseline qualifying period. A 15-year baseline qualifying period has been proposed for those sponsored in roles skilled below degree level. The baseline can reduce with positive contributionsto the UK or increase if negative factors apply. Sponsors need to be aware of how the proposed system works and understand how they and their sponsored workers may be impacted.

New Immigration Rules implementing the earned settlement model could come into effect as early as April 2026.

Act now: there is still time to comment on the proposals

1. The Government consultation closes at 23:59 GMT on 12 February 2026.

2. The House of Lords Justice and Home Affairs Committee have created more broad-based inquiries to further examine the earned settlement and connected earned citizenship policies and their potential implications for directly affected individuals, as well as for integration and social cohesion. The inquiry is open for responses until 23 January 2026.

Please reach out to your usual immigration team contact if you need assistance with drafting a response to the consultation or inquiry, or if you need advice on how to minimise the impact of the proposals from a business or personal perspective.

Existing Skilled Workers may be in scope

If implemented as proposed, the earned settlement model will apply to those with time-limited permission, who have not yet settled on the date the new Rules commence.

  • This has the potential to disadvantage some Skilled Workers, who may no longer be eligible to settle after five years.
  • Some Skilled Workers may be able to accelerate their settlement pathway, qualifying after 3 years.
  • Adult dependants of Skilled Workers may be required to meet earned settlement eligibility criteria in their own right, meaning that all members of a family unit may not be eligible to settle at the same point in time. 
  • A lack of transitional arrangements would also have immediate operational, financial and workforce planning implications for sponsors.

For further information on transitional arrangements and how the policy in this area may affect individuals and businesses, see our article, The earned settlement proposals: transitional arrangements.

A scenario-based review of how earned settlement may work in practice

For an overview of the earned settlement proposals, see our article, The new UK earned settlement proposals: consultation now open.

Each scenario assumes that the applicant(s) will otherwise satisfy the remaining settlement requirements that are not discussed.

High earners may benefit from a 5-year reduction to the 10-year baseline

An A-rated licensed sponsor recruits Amina, an experienced Business Analyst, whose role is classified at degree level or above (also known as Regulated Qualifications Framework (RQF) Level 6+). She is sponsored as a Skilled Worker and was initially paid £45,000. Under the earned settlement model, the new baseline qualifying period is 10 years. However, she worked hard and 3 years ago she was promoted. Since the promotion, she’s been paid a gross salary of £55,000. She contributes 5% to her pension via a salary sacrifice scheme. Her taxable income is £52,250.

What does her sponsor need to be aware of?

  • The threshold for a 5-year reduction is having £50,270 of taxable income: Under the proposed earned settlement model, Amina could reduce her 10-year qualifying period by 5-years if she has at least £50,270 of taxable income for at least 3 years immediately before applying for settlement. Taxable income is distinct from gross income. She currently appears to be on target for a reduced 5-year settlement period, but Amina should be made aware that if she takes up any other salary sacrifice schemes or makes charitable donations, it could takeher taxable income below £50,270, and this could make her ineligible for the 5-year reduction.
  • Negative factors can increase the qualifying period: When Amina’s daughter was born, she applied for and was granted child benefit, which is a public fund she is prohibited from claiming as a Skilled Worker. Receiving public funds for any period under 12 months during the route to settlement can result in an additional 5 years being added to the qualifying period,or 10 years if the funds are received for more than 12 months. This would create a 15 or 20-year qualifying period, which is reduced by 5 years because of the taxable income reduction. If she repays the amount before applying for settlement, Amina can avoid triggering this extra 5 or 10-year period.
  • Positive contributions cannot be combined: Amina has passed an English language test at C1 level under the Common European Framework of Reference for Languages (CEFR), which might reduce the qualifying period by 1 year. However, because she is already eligible for a 5‑year reduction due to her income, she can’t reduce the qualifying period any further by combining these two factors.

What else should employers know?

  • Dependants aged over 18 are subject to the earned settlement model: Amina’s dependant partner, Amir, arrived in the UK after her. Amir must meet the earned settlement requirements in his own right.
  • Dependants may qualify to settle before the Skilled Worker: Amir works as an IT advisor for a big tech company. His taxable income is £150,000 per year. The 10-year baseline is reduced by 7 years because he has a taxable income of at least £125,140 for 3 years immediately prior to applying for settlement. This illustrates that under the proposals, dependent family members may qualify for settlement before the ‘main applicant’ does.

Medium skilled roles may have a 15-year baseline

Mick has been sponsored as a Skilled Worker since August 2021, and he is due to complete his 5-year continuous qualifying period in August 2026. He’s sponsored as an electrical technician, which is a medium skilled role at RQF Level 3-5. His taxable income has remained under £50,270 throughout the time he has lived in the UK.

Mick was arrested not long ago and charged with assault. He hasn’t told his sponsor about this yet as he’s waiting to see what happens. Mick has a dependent partner who does not have her own income, and they have a son together who is 19. Mick’s son finished college earlier this year and he hasn’t decided if he will work or go travelling.

What does Mick’s sponsor need to be aware of?

  • The Government’s policy preference is to have no transitional arrangements: Even though he’s due to settle in 2026, Mick’s qualifying period may extend to at least 10 years andpossibly even 15 years. A 15-year baseline for medium-skilled roles is a proposal and subject to the earned settlement consultation. This would necessitate one or more further Skilled Worker extensions, additional budgeting for immigration costs, and prolonged compliance obligations on the part of the sponsor.
  • A criminal record would be a bar to settlement: The consultation indicates stricter treatment of criminality. If Mick is convicted, under the proposals he would never qualify for settlement. Because Mick is the main applicant, it would also prevent his dependent family members from applying to settle, even if they meet the requirements in their own right.
  • Each applicant aged over 18 at the date of application must have contributed annual taxable income above £12,570 for a minimum of 3 to 5 years: Assuming Mick is cleared ofthe assault charge, the family may stay on a path to settlement. However, under the proposals, any adult dependants must meet earned settlement requirements in their own right. This may include a mandatory requirement to have annual taxable income above £12,570, or an alternative amount of income for a minimum of 3 to 5 years. This could be problematic for Mick’s dependent partner, because she would not be eligible to settle until shecan meet the annual taxable income requirement. This may also apply to Mick’s son as he is over 18, although modified arrangements may apply to young adults.
  • It’s not clear if child dependants aged 18 or over will need to meet rules on absences: There’s no requirement for this under the current Immigration Rules. If it is a requirement under the earned settlement model, applying a qualifying period to child dependants aged 18 or over may come with absence requirements. The proposals for dependants still need significant further policy development.

What should sponsors do now?

Sponsors should plan on the basis that the earned settlement model could come into effect without any transitional arrangements. The new system will affect all people in routes leading to settlement. Our suggested immediate actions include the following:

  • Engage with the consultation and parliamentary inquiries: At the minimum, we would suggest that you consider responding to the Home Office’s consultation questions on transitional arrangements and operational impacts.
  • Submit settlement applications as soon as possible: Consider supporting staff, including Skilled Workers and their dependants, to submit settlement applications as soon as they are eligible and before the changes come into force.
  • Case-by-case review: You should consider making a tailored assessment for each staff member who has limited immigration permission on a settlement route. The assessment should consider their current immigration status, including if they are sponsored or unsponsored, the skill level of their role, their future career progression, their taxable income history and forecast, plus any criteria that could reduce or extend the 10-year baseline qualifying period. You should estimate any associated costs of continuing sponsorship for sponsored staff.
  • Workforce retention timelines: Reset settlement date expectations for affected cohorts who are due to meet 5 years’ residence from early 2026 onwards (e.g. assume 10-year baseline qualifying period for Skilled Workers in roles skilled to at least RQF level 6 and above, and potentially 15 years for below-RQF6 roles) unless staff have attributes that can reduce the baseline. You may wish to explore criteria that can result in ineligibility or that can extend the baseline such as criminal convictions and poor immigration history. This may require having new conversations about personal circumstances.
  • Pay architecture and budgeting: Consider how your pay bands and pay progression could allow eligible employees to reach the proposed £50,270/£125,140 taxable income thresholds for reductions. Budget the associated costs.Role shaping and career ladders: Review your role structure and progression pathways in the context of the requirements of the earned settlement model. 
  • Evidence frameworks: Put in place internal processes to document eligibility factors, e.g. English proficiency, volunteering records (if recognised), taxable income (P60/P45/Payslips), and clean compliance history (e.g. no overstay over 6 months, no debt to UK public bodies).
  • Dependant policy: Anticipate that partner dependants and child dependants who reach 18 may need to qualify for settlement in their own right, and potentially on different timelines fromthe main applicant. Factor this into discussions from the outset, as well as reviewing your family support policies.
  • International mobility strategy: Reassess which UK routes lead to settlement on workable timeframes for your talent, and when a temporary UK assignment without a settlement expectation is the better fit.
  • Public service roles: The Government is consulting on whether there should be a 5-year reduction to the baseline for medical and teaching professionals working in public services. This may be restricted to those working in RQF Level 6+ roles. If you employ in public services (e.g., NHS, education), follow the Home Office’s guidance (once available) on how todemonstrate years of service to support any reduction for defined public service occupations.
  • Employers of medium-skilled workers: Model sharply longer sponsorship horizons for Skilled Worker roles if the 15-year baseline is adopted for roles below RQF Level 6, and the knock-on to recruitment and workforce planning.

Need help?

We’ve developed a range of services that can assist your business and your individual staff members to plan for the implementation of earned settlement. We can also help with drafting a response to the consultation or inquiry. To find out more about how we can help you, please contact a member of our immigration team.

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