Key Takeaway- UK ILR
For employers and HR leaders, the ILR 10-year route consultation signals the UK’s focus on refining routes to permanent residence. Staying informed and adaptable is essential to ensure continued support for valued international employees as immigration policies evolve.
Understanding the Updated ILR Routes in 2026
Previously, individuals could apply for ILR after 5 years on certain routes (e.g., Skilled Worker) or after 10 continuous lawful years in the UK via the long residence pathway, even if switching between visa types like student, work, or family visas.
Under the new earned settlement framework:
- The baseline qualifying period for ILR has increased to 10 years for most migrants.
- The flexible 10-year long residence route has been abolished, removing the option to aggregate time across mixed visa categories for those without a direct 5-year (now extended) pathway.
- ILR is now "earned" based on contributions, including economic input (e.g., salary thresholds), integration (e.g., English language at B2 level), compliance, and character.
- Qualifying periods vary:
- 10 years baseline for many.
- Up to 15 years for roles below RQF level 6 (e.g., certain health and care positions).
- Shorter periods (e.g., 3–5 years) for high earners (e.g., over £50,270 or £125,140), top talent, or specific public sector roles.
- Longer periods (e.g., 20+ years) in cases involving benefit reliance, overstays, or other negative factors.
ILR continues to grant permanent residence, allowing unrestricted living and working in the UK without sponsorship. For HR teams, employees achieving ILR still reduces compliance burdens and boosts retention, but the extended timelines mean more workers remain visa-dependent longer.
Why the Government Reformed These Routes
The reforms stem from the 2025 Immigration White Paper and the "A Fairer Pathway to Settlement" consultation (closed February 2026), driven by:
- Concerns over high migration volumes in the early 2020s leading to a projected spike in ILR grants (around 1.6 million between 2026–2030 under old rules).
- Aims to make settlement a "privilege" tied to demonstrable contributions to the economy and society.
- Preventing automatic settlement based solely on time served, while streamlining processes for high contributors and addressing post-Brexit and points-based system dynamics.
Potential Implications for Employers and HR
With the 10-year route abolished and standard periods extended, employers face greater challenges in retaining long-serving international staff without ongoing sponsorship. Key impacts include:
- Retention planning - Many employees will require prolonged sponsorship, increasing turnover risks if visa conditions become burdensome.
- Cost considerations - Extended visa renewals raise administrative, legal, and compliance expenses for employers.
- Immigration strategy - HR must monitor individual timelines closely, as rules apply at the date of ILR application (potentially affecting those already in the UK).
- Talent continuity - Skilled migrants may face longer uncertainty, impacting morale and mobility; high-contributing talent (e.g., high earners) benefits from faster tracks.
How HR and Global Mobility Teams Can Prepare
To adapt to the 2026 changes, employers should:
- Stay informed via Home Office updates and consult immigration specialists for tailored advice.
- Audit employees' visa histories and projected ILR eligibility under the new earned settlement criteria.
- Support staff with documentation, evidence of contributions (e.g., salary records), and integration requirements.
- Revise internal policies to reflect variable qualifying periods, accelerated paths for top performers, and ongoing sponsorship needs.
- Encourage early planning for employees nearing eligibility to maximize reductions via positive factors.
Proactive steps help ensure compliance, minimize disruptions, and support talent stability amid these major policy shifts.
What Happens Next
The earned settlement reforms are now in force, with implementation from April 2026. Further refinements may emerge based on post-consultation analysis, but the core direction—longer baselines, contribution-based adjustments, and abolition of the pure 10-year route-is set. Employers should monitor GOV.UK for any additional guidance or adjustments affecting workforce planning.


