On 2 November 2026, the Government published its consultation response on the new ‘Earned Settlement’ framework it plans to introduce in 2027. This insight explores that response, and what employers should know about these changes to settlement rules.

Time spent in the UK will no longer be enough to qualify for settlement

The Long Residence route (which allowed a person to qualify for settlement in the UK after 10 years’ continuous lawful UK residence) will close. This reflects the change in focus from ‘time spent in the UK’ to whether an individual has ‘earned’ settlement through their contribution and conduct.

Under the new rules, only time spent in the UK on permanent settlement visa routes (for example, core permission, which includes the Skilled Worker route, core protection, family and private life) will count towards the qualifying period for settlement. Time spent on temporary visa routes (for example, student, graduate or temporary worker) will not count for qualification for settlement. There are no exceptions or concessions which may make the UK a less attractive long-term destination for some overseas talent.

The standard qualifying period for all earned settlement will double from five years to 10 years (subject to meeting certain baseline requirements).

The standard 10-year period can be shortened in order to reflect a greater level of contribution (subject to already meeting the baseline requirements) to:

• Three years: if the applicant has earned over £125,141 each year for three of the last four years or arrived through the Highest Talent Group.
• Five years: if the applicant has earned over £50,271 each year for three of the last five years; or worked in an eligible public service profession for five years (doctors, nurses, teachers, social workers – the full table can be found in Annex C of the response); or there is a recognised British connection.

Dependants

Partners and child dependants under 25 will continue to be able to settle with the principal applicant, provided they meet the relevant requirements that apply to them. Those aged 25 or over will now be expected to qualify for settlement in their own right.

Retrospective application

The new system will apply to both existing visa holders and new applicants. This means people currently living and working in the UK who moved expecting to settle after five years are now facing prolonged uncertainty, additional visa costs and dependence on employer sponsorship. It is understood that over 500,000 people are likely to be impacted.

Transitional provisions

The Government has confirmed that certain groups of workers will benefit from transitional arrangements:

• Care workers (earning at least £25,000 each year) and public sector health and education workers in roles below RQF 6 who began working in eligible roles in the UK before 12 May 2025 will still be eligible for earned settlement after five years (subject to them meeting all the baseline requirements).
• Care workers who do not qualify for settlement after five years will be able to apply for a further five-year Health and Care visa, restricted to genuine work in the sector. The Government has also recognised the historic sponsor abuse issues affecting the care sector and will provide extended grace periods from 1 February 2027 where workers lose employment due to sponsor licence revocation.
• Skilled Workers on the pre-April 2024 salary thresholds will be able to extend their visas on their current terms until 2035 (instead of the previous 2030 sunset date). This provides an opportunity to qualify for earned settlement after 10 years without needing a substantial salary increase.

Key takeaways

The existing settlement rules continue to apply until these changes come into effect over the course of 2027. The detail will be confirmed in new immigration rules and guidance, which are expected in December 2026, but the 2 November publication of their response clarifies the Government’s earned settlement policy and direction of travel.

Public sector employers in healthcare and education face navigating the challenges of a ‘two-tier’ workforce. Whilst the shorter five-year settlement route for some roles is welcome, it may be viewed as ‘rewarding’ high earners/professional staff and ‘punishing’ those in lower-paid support roles with a much longer 10-year route. The same difficulties apply to the transitional arrangements – the different rules will inevitably have an unfair impact on those who are not eligible for the five-year pathway because they missed the 12 May 2025 cut-off date.

Next steps for employers

We recommend that employers:

• Be prepared for greater employee demand for immigration support and settlement planning. As a minimum, we suggest providing your workforce with information about the new requirements.
• Review recruitment plans, workforce planning and immigration support arrangements to identify and plan for future recruitment and retention challenges.
• Strengthen your right-to-work and sponsorship processes. Compliance will become even more important as migrants spend longer periods dependent on immigration permission before becoming eligible for settlement.

How Capsticks can help

If you would like advice on the new earned settlement rules, a review of your existing right-to-work compliance framework and documentation, support with any specific issues affecting your organisation or training for managers and HR teams, please contact Partners Jonathan Lewis or Nicola Green to find out more about how Capsticks can help.