As deadline approaches, what the UK Earned Settlement consultation means for startups

5 February 2026

The UK government’s “earned settlement” consultation, open until 12 February 2026, proposes major reforms to how migrants gain indefinite leave to remain (ILR), also known as settlement. Managing Partner Vanessa Ganguin has written a piece for Startups Magazine on the potential consequences for UK startups and those they employ and why everyone should respond to the open anonymous online consultation before 12 February.

The standard period spent in the UK before people are eligible to qualify for ILR would rise from five to ten years and up to 15 years for lower-skilled roles. Refugees could face 20 years. This would sharply increase sponsorship costs and would make the UK less competitive for global talent.

Those earning over £50,270 or with high-level achievements could “earn” faster routes, with five years off their route to settlement, while those on Global Talent and Innovator Founder visas and those earning above £125,140 could qualify in three years. Extra credits may come from community volunteering or advanced English skills. However, workers who break immigration rules or claim public funds could see decades added to their settlement timeline.

Applicants would need three to five years of NI contributions, B2 English, a clean record, and no public debt. Groups such as people under EU Settled Status or the Hong Kong BN(O) scheme would be exempt. The consultation also considers whether time spent on student or graduate visas should count toward settlement and if vulnerable groups should face the same hurdles.

For employers, extended visa cycles could double or triple costs and deter skilled migrants. Early-stage firms relying on equity pay could struggle under high income thresholds. Respondents are encouraged to share how these radical proposals could reshape recruitment, retention, and the UK’s competitiveness.

Stakeholders are urged to respond by 12 February 2026 to highlight its impact on recruitment, project delivery, and workforce stability by following this link: gov.uk/government/consultations/earned-settlement.

You can read more about the proposals and questions in the consultation in this more detailed explanation that Associate James Lamont has written to help formulate your responses.

Anyone concerned about these proposals or any other immigration matters can contact us for a consultation. You can use the form below, email one of our lawyers or call 0207 033 9527.

Founder and Managing Partner Vanessa Ganguin is a leading light in UK immigration, with three decades of specialist experience in all aspects of UK immigration law: personal, human rights, corporate, including appeals at all levels. Vanessa has built a firm with a global reputation for a boutique, meticulous, hands-on, responsive, friendly approach and exceptional levels of service and expertise across all aspects of immigration and nationality.