What changes to indefinite leave to remain are the UK government planning?

31 October 2025

Since the Labour government released its White Paper on 12 May 2025, which set out a broad agenda for immigration reform but was light on the details, there has been much speculation about how, exactly, the proposed changes to indefinite leave to remain (ILR) will be enacted.

How does ILR work now?

At present, most immigrants who are in an eligible route can typically qualify for ILR after five years, though there are some exceptions. ILR (also known as settlement) is a status that confers permanent residence on the applicant. It comes with a number of rights, including not being subject to immigration control and the ability to claim public funds, and can typically only be lost after a continuous absence of two years (or five years for those with leave under the EU Settlement Scheme) from the UK.

What did the White Paper say about ILR?

The White Paper stated that the standard route to settlement would be changed from five years to ten years, with some exceptions.

Crucially, the White Paper stated that a shorter qualifying period will be available to some of the affected immigrants, who will be able to “earn” a faster settlement by way of “points-based contributions to the UK economy and society” but without any clarification about what this would entail and what would be required.

It was not stated whether these changes will affect those already in the UK on a qualifying visa or if its effects will be limited to new arrivals.

Who will be affected by these changes?

Since the publication of the White Paper, the government has released further information about the proposed changes.

On 29 September 2025, the Home Office released an update which provides a little more detail as to how someone might “earn” faster settlement:

A person can earn a reduction in the number of years if they meet earnings or integration requirements, while those who have been non-compliant at any point will be required to wait longer – or have their claim refused outright.

The Home Secretary has set out the proposed conditions for gaining indefinite leave to remain in the UK, including being in work, making a certain level of National Insurance contributions, not taking any benefits payments, learning English to a high standard, having a spotless criminal record, and giving back by, for example, working in your local community.

The statement suggests that some people may face an even longer wait than ten years or, in some cases, be barred from ILR completely.

The Times reports that government sources have told the paper that this new “good citizen” test would only be applied to new arrivals and not to immigrants already in the UK as it would be too complicated to apply.

According to their unattributed sources, a separate transitional scheme will apply to immigrants already in the UK who arrived after 2021, which would similarly see their qualifying period increased beyond the current five years, though it is expected to be less strict than the proposed new ILR system for ease of administration. At present, nothing further is known about what this might look like, though if the reporting is accurate, at least some of the changes will likely apply to many of those already in the UK, subject to the outcome of expected legal challenges.

The White Paper is clear that the five-year qualifying period for family members applying under Appendix FM will be preserved, as will the current immediate path to settlement for victims of domestic abuse who qualify under this route, which we can also advise on.

Those with post-Brexit residence rights under the EU Settlement Scheme (EUSS) have the right to settlement after five years under Article 15 of the UK-EU Withdrawal Agreement and as such, it is highly unlikely that they would be affected by these changes.

At present, it is not clear whether there are any other routes that would be similarly exempted.

When will these changes take effect?

The planned changes to ILR will be subject to a consultation expected to be launched by the end of this year, to which members of the public will be able to contribute. The government has stated that final decisions will only be made after the consultation.

Accordingly, it is unlikely that the bulk of these changes will take effect before 2026.

Will the proposed changes affect people who already have ILR?

There is nothing to suggest that the Labour government plans to make any changes that would affect existing ILR holders.

However, the Reform UK party has put forward a plan to scrap ILR entirely, even for existing ILR holders. Reform is currently ahead in opinion polls but an election is unlikely before 2029. For this reason, we would advise those who currently hold ILR but have not yet naturalised as a British citizen to consider doing so, out of an abundance of caution.

How will these changes affect those who have yet to qualify for ILR?

If the Labour government proceeds with its proposed changes, it is likely that many people who are currently in a route to settlement (other than as a family member, a victim of domestic abuse or under the EUSS scheme) will qualify for ILR significantly later than they expected.

The delay in obtaining ILR will have many negative consequences, including:

1. The costs of additional extension applications, including the application fee and the Immigration Health Surcharge (IHS). Given the sharp rise in these fees over the last few years, this will be a considerable expense, particularly as there is always the possibility of further hikes in the future.
2. The increased risk of an applicant’s circumstances changing over the longer qualifying period that may mean they are no longer eligible for ILR, such as losing sponsored employment and being unable to find a new sponsor in time to maintain continuity of leave.
3. A delay to benefit eligibility, as most immigrants cannot claim public funds until they are settled, which will affect both low and high earners, e.g. someone on a Skilled Worker visa is barred from accessing funded childcare for working parents until they have ILR, which may adversely affect family planning and other similar plans.
4. Children and young people will be affected in two ways. First, ILR is usually required to qualify as a home student for tuition fee purposes, which will mean that many children affected by these changes who wish to attend university will be expected to pay the significantly higher “overseas rate” tuition fees and will not qualify for access to a standard student loan. This would have the effect of making a university education unobtainable for many young people. Second, children who are in the UK as dependants on their parents’ visa must continue to be “dependent” on them and must not be living an “independent life”. What this means is that they will only continue to qualify for further leave if they continue to live with their parents (with a single exception for living elsewhere to attend university or other further education) and they must not have a partner.

What will these ILR changes mean for employers?

Employers will naturally be concerned about reassuring any employees they are currently sponsoring about what this means for them and their future in the UK, as well as the effect that the proposed changes may have on their ability to sponsor future workers from abroad, as these changes are likely to act as a deterrent for many who would have previously considered moving to the UK. This will be particularly true for highly-skilled, mobile workers who may have a number of countries to choose from when deciding to relocate and it seems inevitable that some existing workers who will be affected by these changes will choose to leave the UK as a result.

Financially speaking, increasing the qualifying settlement period would also mean a substantial increase in the costs associated with sponsoring a Skilled Worker, particularly for employers who opt to pay for their sponsored workers’ application fees. There will also be the further cost of an additional five years of the Immigration Skills Charge, which is set to rise by 32%.

This is yet another blow to employers who have already had to weather many significant changes to the Skilled Worker route in just the last year, including the recent increase to the minimum skill level of occupations eligible for sponsorship, a further raise of minimum salaries for sponsored jobs, new changes that have excluded many sponsored workers from being joined by their spouse or child, and the introduction of severe penalties for passing the costs of sponsorship, such as the cost of a sponsor licence application, to the sponsored worker.

Please contact us if you are concerned about these changes, or have any other questions about UK immigration, nationality, right to work and sponsorship procedures and compliance. You can use the form below, email one of our lawyers or call 0207 033 9527.