UK Government’s response to the Earned Settlement Consultation Paper

Published yesterday, the Government’s response to the Earned Settlement Consultation Paper foreshadows the long-awaited new framework for those applying for Settlement. The next step is the publication of a “Statement of Changes” amending the UK Immigration Rules and setting out the new arrangements and their timetable for implementation, followed by updated Home Office guidance.

At this stage, we expect the Statement of Changes to be published in the coming weeks, with implementation likely to begin, possibly on a phased basis, from April 2027. The Government’s response is at this stage incomplete and not legally binding. We will issue a further update once the definitive Statement of Changes has been published. 

Our summary provides a non-exhaustive overview of the key areas in which the current law is expected to change:

• The baseline qualifying period for Settlement will increase from five to 10 years’ continuous residence in the UK.
• An increased threshold of the “Good Character” requirement under which applicants with a “criminal record” in the UK will automatically be refused Settlement. For these purposes, a criminal record covers custodial or suspended sentences, out-of-court disposals such as absolute and conditional discharges, conditional cautions, court-imposed fines, community sentences, detention and training orders, and civil orders following a conviction. Overseas convictions will also be considered, although in many cases on a discretionary basis. Certain, as yet unspecified, “Immigration breaches” will also result in automatic refusal.
• Outstanding “Government debt” at the time of application will result in automatic refusal. This includes NHS debt, unpaid tax and National Insurance contributions, and litigation debt owed to the Home Office.
• Those earning a minimum gross annual salary of £125,141 in three of the four years preceding their application will be eligible to apply for Settlement after three years.
• Those earning a minimum gross annual salary of £50,271 in three of the five years preceding their application will continue to be eligible to apply for Settlement after five years.
• Under the “British connection” provisions, eligible family members of UK nationals and those with UK Ancestry or BNO status will remain eligible to apply for Settlement after five years and will not be subject to the minimum salary thresholds above.
• Subject to limited exceptions, applicants under the three, five and 10-year routes must not have accessed “Public Funds” in the five years preceding their application. As things stand, the definition of “Public Funds” is unchanged.
• For most applicants, the minimum English language requirement will increase from B1 to B2.
• Transitional arrangements will apply to some applicants currently employed in the care, public service, health and education sectors but otherwise there will be no blanket transitional arrangements.

We expect the Statement of Changes to be published imminently. Employers should therefore emphasise to their workforces that the Government’s published response remains provisional and is not legally binding. Nevertheless, we expect the changes outlined above to form part of the new framework.

For further information please contact Jonathan Chaimovic or your usual Clyde & Co contact.