The UK announced a dual-track immigration overhaul on Thursday that reshapes pathways to permanent residency.
Most foreign workers will need to wait ten years for indefinite leave to remain, double the current five-year standard, but a new “earned settlement” scheme allows high-earners and exceptional contributors to qualify much faster.
The fast-track pathway rewards substantial tax contributions, strategic employment sectors, and community integration through a points-based system.
Announced by Home Secretary Shabana Mahmood, the reforms reflect the government’s determination to attract elite talent while reining in overall migration numbers that have reached record highs.
Earned settlement: A fast pass for high-value contributors
The “earned settlement” pathway introduces a points-based model that accelerates permanent residency for migrants who demonstrate significant contributions to the UK.
Qualifying criteria include higher salaries, National Insurance contributions, employment in critical shortage occupations, professional qualifications, and community volunteer work.
Those working in sectors aligned with the government’s industrial strategy, artificial intelligence, tech, healthcare, and engineering face particularly favourable prospects.
While exact salary thresholds and point values remain under consultation, the government has signalled that exceptional contributors could potentially achieve settlement within five to six years, substantially faster than the standard decade-long wait.
The framework reflects what Mahmood described as making settlement an “earned” achievement based on sustained economic and social contribution, not simply accumulated years in the country.
Employers in high-value sectors, particularly tech and finance, view this as a potential lifeline.
The earned settlement route offers a way to retain talent who might otherwise relocate to competitors like the United States, particularly post-H-1B fee hikes.
However, specifics remain vague. Consultation on the contribution model is expected before year-end, leaving both employers and migrants in planning limbo.
Extended wait for standard workers: The 10-year reality
The standard route now requires ten years of continuous residence before migrants can access indefinite leave to remain (ILR), a seismic shift that’s galvanised considerable concern.
Most Skilled Worker visa holders, nurses, engineers, and mid-tier professionals fall into this category.
The government exempts spouses and partners of British citizens, who retain the five-year pathway, alongside refugees and humanitarian cases, yet the broader workforce faces doubled timelines.
For employers, the maths are brutal. The Immigration Skills Charge jumped 32 per cent in December 2025, now £1,320 annually for medium and large sponsors.
Sponsoring a worker for ten years instead of five effectively doubles recruitment costs, stretching tens of thousands of pounds per employee beyond visa fees and salary expectations.
This is creating a crisis in labour-dependent sectors. Nursing homes worry about caretaker recruitment; the City of London reports overseas relocation has “ground to a halt”; insurers face hiring constraints.
Technically, transitional arrangements may protect those already approaching the five-year mark, but the government hasn’t confirmed details, leaving many facing retroactive application uncertainty.
The UK’s ten-year standard is now among Europe’s longest; Denmark offers eight years for some categories, and threatens to deter mobile, high-skilled talent shopping between countries.
Employer bodies like techUK have warned of economic headwinds, noting that alongside higher salary thresholds and visa costs, the reforms risk making the UK less competitive than its peers.
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