The Earned Settlement proposals – a unique opportunity for the tech sector
Written by
On 20 November 2025, the Government opened their public consultation on reforms to the qualification period for settlement in the UK (also known as 'Indefinite Leave to Remain'). The consultation ran for 12 weeks and closed on 12 February 2026, with over 200,000 responses.
The Home Office had initially suggested that the changes would be introduced from April 2026; however, the timetable has since been revised to “later this year”, with the Home Secretary reportedly indicating an Autumn implementation, according to the Times.
The policy statement, A Fairer Pathway to Settlement, outlines the proposed ‘Earned Settlement’ model which would replace the current rules on settlement. In this statement, the Home Office describes ‘Earned Settlement’ as a “…principle that recognises the value of long-term contribution to the UK. Rather than granting settlement after a fixed period,”.
Essentially, the proposed changes will replace the current five-year qualifying period for Skilled Workers (and most other visa categories) with a 10-year baseline period, which can then be reduced or increased based on an applicant’s individual contributions to the UK. The Government proposes to “apply these changes to everyone in the country today who has not already received indefinite leave to remain.” This has understandably created anxiety amongst Skilled Worker migrants who are currently on a five-year route to Settlement, and fear this might be extended.
Economic contribution is highly valued within the proposals. Applicants who have earned a taxable income of £125,140 for 3 years immediately prior to applying for settlement, will be eligible for settlement within 3 years. Applicants who have earned a taxable income of £50,270 for 3 years immediately prior to applying for settlement, will be eligible for settlement within 3 years.
As the policy statement will likely provide the foundation for future legislation, it provides an opportunity for HR professionals to review their current Skilled Worker recruitment and retention strategies in this light.
How can Tech Companies ‘future proof’ their Skilled Worker recruitment?
For the tech sector, in which salaries typically significantly exceed the national average, the proposed reductions in the qualifying period, based on economic contribution, provide an opportunity to quell the anxiety amongst existing sponsored Skilled Workers and attract future talent, whilst also potentially saving visa costs. If the qualifying period for a Skilled Worker can be reduced, the annualised Immigration Health Surcharge and Immigration Skills Charge fees, associated with the individual’s visa application, will decrease accordingly.
In light of the above, we suggest HR teams undertake the following exercise, with reference to their existing, and projected, Skilled Worker population:
- Review the salaries of all existing Skilled Workers with reference to the £50,270 and £125,140 thresholds.
- Identify any existing Skilled Workers whose salaries are close to either threshold, and assess whether, if their salaries were to be increased to meet the relevant threshold, this would impact their timeline for settlement. These cases should be flagged for discussion with the relevant manager. The ability of the company to provide great certainty to the sponsored worker, in terms of their ability to stay in the UK long-term, as well as the potential cost savings of a shorter route to settlement should be discussed.
- Review the salaries of all pipeline roles, which may be filled by a Skilled Worker migrant, with reference to the £50,270 and £125,140 thresholds.
- Identify any pipeline roles where the salary is close to either threshold. These cases should be flagged for discussion with the relevant manager. The discussion should include a cost-benefit analysis of increasing the salary to the relevant threshold. Potential benefits of increasing the salary accordingly include the attractiveness of the role to interested Skilled Worker migrants, and lower potential visa fees if this does become a sponsored role.
Pragmatically, any proposed changes to salary could be tabled for the Autumn, when further details on the implementation of the proposals are likely to be available. Undertaking this exercise now will place tech companies in the best possible position when the Rules do inevitably change.
