Why industry should be concerned about the UK’s Earned Settlement consultation

5 February 2026

Vanessa Ganguin has written an article in The Engineer calling on engineering leaders to respond by the fast-approaching 12 February 2026 deadline to the government’s consultation on UK settlement reform.

The proposals could have major consequences to the precarity of the status of UK immigrants coming to the UK, as well as those already here on what they imagined was a straightforward five-year route to settlement. The government’s proposals that it is consulting on have major implications for industry too: in terms of international recruitment, retention and longer sponsorship costs across many sectors. The current five-year route to settlement, also known as indefinite leave to remain (ILR) may double to a ten-year baseline, rising to 15 years for many mid-and lower-skilled roles, including technicians, welders, and designers.

“Sectors employing engineers and adjacent roles are crucial to the government’s Modern Industrial Strategy and Britain’s economic growth”, writes Vanessa in The Engineer. “They are well placed to explain how these proposals may affect their ability to attract the talent they need to the UK, skills shortages, workforce morale, operating costs and, indeed, whether they are fair or proportionate.”

According to the “earned settlement” proposals, the standard qualifying period for settlement would double from five to ten years spent in the UK on a route that leads to settlement, with up to 15 years for those in roles below RQF6 (sub‑degree level skillsets) and 20 years for refugees. The “earned settlement” proposals involve “earning” a shorter route through specified contributions. It is suggested that higher‑rate taxpayers (earning £50,270 or more) and highly skilled public servants, could reduce the proposed ten‑years by five years. The Home Secretary also proposes that those on Innovator Founder or Global Talent visas, or earning above £125,140, settle in three years. Community volunteering and higher English language attainment (advanced C1) also shorten the route.

Lower‑skilled workers, those who break immigration rules or claim public funds face many more years – even decades – of repeat visa applications before they can settle. A six-month period of overstaying, which can happen easily if people misunderstand rules, could add 20 years on top of a ten‑year route.

It is proposed that new baseline requirements for settlement include three to five years of National Insurance contributions (earning over £12,750), no outstanding government debt, a clean criminal record and B2 English language (equivalent to a foreign language A-level).

Some groups – such as those on the EU Settled Status route, certain family members of British citizens and people on the Hong Kong BN(O) scheme – are exempt from changes to the current five-year route.

Given the enormous changes to qualifying for settlement, which will start being phased in perhaps as early as April many people who expect to be negatively affected by the proposed changes are looking at the possibility of applying for ILR early. Senior Associate Alex Piletska has written an article in Free Movement about how possible that is and what may be strategic which you can read here.

For engineering and allied industries already tackling skill shortages, these barriers could make the UK less attractive than competitors and increase administrative and financial burdens. All organisations and individuals are encouraged to share feedback on how the proposed “earned settlement” model could affect recruitment, workforce stability, and the UK’s industrial competitiveness.

There is still time to respond before 12 February 2026, both as individuals and on behalf of your organisation. You can respond to the public consultation on the proposals through this link. You can read more about the proposals and questions in the consultation in our guide here to help formulate your responses. Businesses in all sectors of the economy will likely be affected and you may want to read our summary and liaise with colleagues on an organisational response. The consultation is anonymised.