Proposed indefinite leave to remain changes in the UK: What employers sponsoring skilled workers need to know

The proposals identify four areas that workers would need to be able to demonstrate compliance with before applying for settlement:

1.    A clean criminal record.

2.    A high standard of English language proficiency.

3.    At least three years of contributions to the UK economy through National Insurance payments.

4.    Having no unpaid debt owed to the State.

The Government has set out the different timelines under which different categories of workers will be eligible to apply for ILR.  The new legal changes will begin to be laid before Parliament starting in December 2026, with a phased rollout and detailed guidance continuing throughout 2027:

• Three years: higher earners and certain routes

The proposals envisage a three-year path for individuals earning £125,000 or more and for those on certain immigration routes, such as Global Talent and Innovator Founder routes. Employers should not assume that salary alone will establish eligibility: the detailed conditions will matter.

• Five years: some earners and sector-specific roles

A five-year path is proposed for individuals earning £50,000 or more and for those in healthcare or education roles. The scope of the relevant roles and any additional conditions will need to be checked before employers advise staff on their expected settlement date.

• Ten years: the proposed default

For workers who do not qualify for a shorter route, the proposed settlement period would be ten years. This could affect workers earning below £50,000 who do not fall within a qualifying exception. For their employers, a longer wait could mean a longer period of sponsorship-related administration and associated costs.

• Twenty years: immigration breaches and entry circumstances

There will be a twenty-year wait for people who breach immigration rules. The nature of the breaches covered and how the longer period would operate is not yet clear.

There will also be at least a twenty-year wait for those who did not enter the UK through a safe or legal route. Employers should avoid drawing conclusions about individual cases until the relevant definitions and conditions are clear.

The proposals described here would allow care workers who arrived before May 2025 to qualify for ILR after five years if they earned at least £25,000 a year during their first five years of sponsorship, subject to the applicable requirements.

For care workers who arrived between 2022 and 2025 but do not meet those criteria, they will be eligible to apply for a further five-year care visa, without sponsorship by their previous employer, followed by an opportunity to apply for settlement. 

Hong Kong British National (Overseas) route holders, members of the armed forces and people on legacy routes such as Windrush are unaffected. Employers should consider each worker’s immigration route rather than assume the same settlement timetable applies to everyone.

• Review workforce planning. Identify where recruitment plans and retention strategies rely on settlement after five years. Consider how a longer qualifying period might affect those plans based on the current announced changes.
• Communicate carefully. Employees may be concerned about changes to their settlement prospects. Explain the distinction between proposals and rules in force and avoid promising a settlement date or recommending salary changes solely on the basis of the reported thresholds.
• Check the final rules and transitional provisions. Before making decisions, establish when any changes will take effect, whether existing sponsored workers are covered and how qualifying earnings, sector exceptions and additional requirements will be assessed.