What are the key takeaways from the government's Extended Settlement proposals?
Seismic changes to the UK’s settlement rules are coming in 2026. Although proposals are subject to consultation, the timing of proposed amendments to Immigration Rules suggests that minds in government may already have been made up. Here I summarise the proposals, answering 10 key questions for employers and migrants who stand to be affected by the changes.
1. Will the rule changes apply to those already in the UK on visas?
The Home Secretary clearly thinks they should. She says in the foreword to the consultation document ‘Crucially […] we propose to apply these changes to everyone in the country today who has not already received indefinite leave to remain. This would mean that those who are due to reach settlement in the coming months and years would be subject to the new requirements for earned settlement, as soon as our immigration rules have changed’
Things can of course change – and thousands of consultation responses have already been submitted to the Home Office urging a different approach – but expect to see everyone on sponsored work and other economic visa routes affected by the 2026 changes.
When new rules are introduced to affect existing migrants, they often include transitional arrangements, making the pill a bit easier to swallow. We have no clear idea what any such arrangements might look like, but can speculate there may be a graded increase depending on how long you have already spent on your UK visa. Clearly someone a few months away from 5-year settlement would be particularly badly served if suddenly subject to a doubling of that qualifying period.
2. When are new rules coming into effect?
Potentially as early as April 2026. Some aspects of the changes – notably a review of criminality thresholds – will take longer to implement.
3. Which visa types are impacted by the proposed changes?
Pretty much every visa route is potentially affected, but some to a lesser extent than others due to the concept of “earned settlement” which is explained below.
Only a few visa routes are expressly excluded from the consultation - The EU Settlement Scheme and Windrush Scheme and certain vulnerable and other groups including victims of domestic abuse, bereaved partners, adults requiring long-term care, and members of HM Armed Forces and their families.
For the rest, it is important to note that partners and other “Appendix FM” family members of British citizens will retain their 5-year path to settlement based on the benefit of a standard “time reduction” factor. They may however face an increase if subject to one or more of the “time increase” factors – including receiving benefits, having arrived illegally in the UK, or as a visitor.
A similar approach will be adopted to other short-settlement routes such as Global Talent and Innovator Founder, who will still be able – potentially - to settle after 3 years.
Another impact of the changes would be the “10-year long residence route” become obsolete, and will be abolished.
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4. What does “earned settlement” mean exactly?
To begin with, there are a number of mandatory requirements to be met by anyone looking to settle in the UK. These are broadly suitability (good character including criminality), English ability to level B2 CEFR, and annual earnings over £12,570 for a set period prior to your application. If you don’t meet all three mandatory requirements you will not be able to settle.
Once over this basic set of hurdles, the government’s big idea is to make people wait longer before they can secure indefinite leave to remain in the UK, with some discounting if you have certain positive characteristics, and some lengthening if you have negative ones.
5. What factors could shorten the path to settlement?
A sponsored skilled worker currently qualifying for settlement after 5 years will see this increase to 10. This will be discounted as follows:
- Integration – English language ability at level C1 CEFR – take of one year, so settlement in 9
- Contribution – basically earnings – so if you’ve made £125,140 or more for 3 years, you can deduct 7 years, and settle in 3. If you’ve earned £50,270 for the past 3 years, deduct 5 years and settle in 5. If you’ve worked in a public service occupation, deduct 5 years. And if you can evidence work or community activity eg volunteering, deduct between 3-5 years and settle in 5-7.
- Partners, parents or children of British citizens – so those applying under Appendix FM – are automatically discounted by 5 years, meaning their period to settlement will remain the same at 5 years. The same goes for British National (Overseas) cases. Note that partners etc of settled people are excluded from this discounting.
- Global Talent and Innovator Founder migrants will receive 7 years’ discount, and will continue to be able to settle after 3 in many instances.
6. What factors could lengthen the path?
Factors that will lengthen the period to settlement are suggested as follows, again with 10 years as the starting point:
- Claiming benefits for less than a year during your period of residence – add 5 years, so settlement after 15 years
- Benefits received for more than a year – add 10 years, settling after 20 years
- Arriving in the UK illegally – add upto 20 years, settlement after 30 years
- Entering on a visit visa before seeking to switch, for example on private and family life grounds – add upto 20 years.
- Overstaying for 6 months or more – again, add upto 20 years
These negative factors, which stand to increase paths to settlement by huge amounts, are a particularly contentious aspect of these proposals. Much detail is missing from the government’s consultation, the new rules raising more questions than answers in many respects.
7. Are there different proposals for care workers?
As part of its continued efforts to demonise and marginalise key workers in the private care sector, the government proposes to make them – and other sponsored workers whose roles are classified as lower-skilled – RQF 3-5 – subject to a separate 15-year settlement path. If implemented, this will also affect workers in shortage occupations whose jobs – while below RQF 6 – remain open to sponsorship as they are hard to recruit for.
These workers will still be subject to the positive and negative factors explained above, so could face extremely long periods – and obvious costs increases – before qualifying for settlement. It is difficult to see the rationale behind this mean-minded aspect of the consultation.
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8. What are the new English language requirements?
As has been widely trailed, the standard level of English required will increase from CEFR level B1 to B2. Ability to level C1 will be one of the “time reduction” factors – but only by one year.
9. How will minimum earnings requirement change things?
This stands to be complicated, and will potentially introduce some entirely new considerations to certain visa types. Take partners of British citizens for example; Appendix FM allows them to meet a financial requirement through savings or the British partner’s earnings. The visa holder – under these proposals – will be subject to the mandatory £12,570 income requirement, presumably in addition to the existing £29,000 financial threshold for partners. How will this impact stay-at-home parents, or those with disabilities? Would half of a couple relying on savings still need to generate their own income?
Similar considerations arise for Innovator founders, who may not be drawing funds from their start-up business.
And if the are no transitional arrangements, applicants already in their respective visa routes will have no time to adjust their activities in order to meet these new requirements for settlement.
10. What does “community activity” look like?
We don’t know – the consultation contains no detail on how long, or how intense, your volunteering has to be.
It is important to remember that these changes are under consultation at present – nothing has been implemented, and many will not be until later in 2026 due to their complexity. We would encourage all those affected – which includes employers facing increased visa costs as well as individuals – to respond to the consultation before the deadline of 12 February 2026.
Need clarity on how these proposals could affect you, your family or your business?
The government’s plans for “earned settlement” could significantly change qualifying periods, income thresholds, and eligibility for thousands of migrants and employers. Don’t wait until 2026 - start planning now.
Our expert immigration lawyers at Latitude Law can help you understand the impact of these changes, review your current position, and develop a strategy to protect your future plans.
Get in touch with Latitude Law today by calling 0300 131 6767 or complete our contact form and we will get back to you.