ILR (Indefinite Leave to Remain), also known as settlement, gives a person the right to live and work permanently in the UK. Settled status holders are free from restrictions associated with immigration control. In order to naturalise as a British citizen, one must secure permanent settlement in the UK. 

As of date, a person can apply for settlement after 5 years of continuous residence in the UK on a valid visa (with some exceptions: Innovator Founder and Global Talent visa holders can qualify after 3 years of continuous residence in the UK). 

However, the UK Government has proposed a new “Earned Settlement” model, under which the standard qualifying period for immigrants to receive ILR will increase from the current 5 years to 10 years, with a scope of decreased qualifying periods (less than 10 years) for higher earners and fluent English speakers and increased qualifying periods (more than 10 years) for immigrants who claim benefits or entered the UK illegally. 

These proposals have been developed in response to the unprecedented levels of immigration to the UK in recent years, especially in lower-paid job roles and particularly in adult social care, where a large number of people received or will receive settlement and became or will become eligible to apply for public benefits and social housing, increasing costs for taxpayers.

Why is there a shift from time-based policy to contribution-based policy for settlement in the UK?

Previously, many migrants could obtain ILR after 5 years of continuous residence in the UK on a visa such as the Skilled Worker visa.

Now, the government wants the settlement to depend on a migrant’s salary level, skills, English level, and economic contribution.

The rationale behind this shift is to 

• Reward higher-value workers, 

• Attract high-skilled and high-earning talent, 

• Reduce reliance on lower-paid migration

• Limit automatic settlement pathways

• Make fewer people eligible for long-term stay

• Ensure migrants integrate better and participate fully in society

This article explores the Income and English language requirements for Earned Settlement in the UK.

Income requirement for Earned Settlement

The Government intends to introduce new mandatory minimum requirements that ILR applicants would need to meet in order to qualify for settlement after 10 years in the UK. This would include minimum earnings of £12,570 per year—the minimum the UK Income Tax and NI contributions threshold—for a period of 3–5 years before applying. 

The government suggested that some people may be exempt from the minimum income requirement of £12,570 per year if they have valid reasons for not meeting it.

They specifically mentioned:

• Those on maternity leave

• Those with long-term illnesses; and

• Disabled people

And they asked the public whether any other groups should also be exempt from this requirement.

The UK government is proposing that the minimum income requirement of £12,570 a year would apply to:

• Main visa holders (e.g., workers)

• Adult dependants (spouses/partners)

• People travelling to the UK on family visas to join their British partners 

• Refugees

• People on a Hong Kong BN(O) route

The only group automatically exempt is dependent children.

The Home Office is proposing that these mandatory income requirements apply at an individual level rather than a household level—as part of proposals for dependants to earn settlement in their own right. For example, under the Work visas, today only the main applicant’s salary matters for settlement, but the government’s proposal says that the spouse/partner must also meet the income requirement individually to qualify for settlement. Therefore, both partners would be required to show economic activity, not just one.

Income-related reductions

The Home Office has completed a consultation on earnings-based reductions to eligibility periods for reaching settlement, according to which:

Those who earned a taxable income of £125,140 for 3 years immediately before applying for settlement would get a 7-year reduction from the 10-year baseline. 

Those who earned a taxable income of £50,270 for 3 years immediately before applying for settlement would get a 5-year reduction from the 10-year baseline. 

Please note that these changes are subject to the consultation review and the implementation of the new earned settlement system which is likely late 2026. 

English Language Requirement for Earned Settlement

Although the Home Office’s earned settlement model has been deferred to a future Statement of Changes in Immigration Rules, there are still important developments one needs to be aware of.

For settlement applications made on or after 26 March 2027, the English language requirement for settlement will be raised to CEFR (Common European Framework of Reference for Languages) Level B2, across the areas of speaking, listening, reading, and writing from the current requirement of CEFR Level B1 (intermediate).

Impact and course of action

The increase in English language level will affect several routes, including the UK family route, Skilled Worker, Global Talent, Scale-up, Innovator Founder, UK Ancestry, International Sportsperson, and the 10-year continuous residence route. The change will be applied to the main applicants, adult partners, and child dependents. 

Some applicants may struggle to meet the increased English language level. Therefore, businesses/sponsors should:

• Make overseas workers aware of this change, and assess whether any overseas worker or their family members may face difficulties reaching it;

• Ensure that any ILR applicants who need to re-sit an English language test to meet the new English language level requirement do so in good time before their settlement application; and

• Plan for visa extensions in circumstances where the applicant cannot meet the requirement by the date of the existing immigration permission expiry.

English level-related reductions

Please note that, subject to the consultation review and the implementation of the new earned settlement system (likely late 2026), those speaking English at CEFR level C1 will be able to apply for settlement after 9 years instead of the baseline qualifying period of 10 years.

Consultation status - latest official position

The UK government launched the consultation on earned settlement in November 2025 and ran for 12 weeks. Even though the consultation process has closed on 12 February 2026, policy decisions are pending for various reasons, which are expected around March–spring 2026.

So far, the government has indicated that the new earned settlement system may apply to people already in the UK (called “retrospective application”). This means even if someone who came to the UK under old rules (e.g., 5-year settlement), might still be moved into the new system, meaning they may face a 10-year route for settlement, or new income requirements, or higher English level, or all of them.

Transitional protections (likely but not final)

The government is facing backlash on the "retrospective application” of the new system, and they are now considering transitional arrangements.

These could include:

“Grandfathering,” which means those already in the UK will stay under the old settlement rules. 

“Partial protection”, which means those who are close to settlement (e.g., 3–4 years completed) may still qualify under the old rules, while others may move to the new system.

“Full retrospective change”, which means everyone in the UK on a visa that leads to settlement moves to the new system, regardless of when they arrived in the UK.

How can Visa and Migration help?

The UK visa landscape has changed significantly after the government’s commitment to reduce net inward immigration in the UK. The process that started with the Home Office releasing a White Paper on 12 May 2025 continues to take shape through different immigration policy changes. The latest policy change statement was introduced on 5 March 2026.

In this context, if you are looking to apply for a family visa, Skilled Worker visa, any visa extension, or settlement in the UK, you should seek an expert’s help.

We help businesses plan to sponsor overseas workers with new salary, skill, and English level requirements so that they can manage their human resource timely manner and meet the sponsor’s responsibilities properly.

Similarly, we help applicants to meet the latest income requirements for family routes, salary, skill, and English language thresholds for work visas and other routes. We ensure their application does not fall for refusal because they failed to meet the latest requirements. 

If you are nearing settlement in the UK, we can help you plan for it early, before the increase in the level of income and the English language comes into force.

For expert advice and queries on the Earned Settlement System, you can call us at +44 (0)20 3411 1261 or write at info@visaandmigration.com