Proposed Changes to ILR: What HR Teams Supporting Skilled Workers Should Be Aware Of
The government has proposed significant changes to the UK’s Indefinite Leave to Remain (ILR) system, including moving away from the automatic five-year route towards an “earned settlement” model. While these proposals are not yet law, they signal a shift towards greater scrutiny of salary, role stability, conduct, and integration. For HR and People teams supporting Skilled Worker visa holders, this reinforces the importance of early planning, consistent documentation, and careful employer confirmations. This is particularly relevant for employees approaching ILR under the current rules. Clear internal processes and structured employer support can help reduce last-minute risk and uncertainty as the settlement framework evolves.
Dhruti Thakrar
Dhruti Thakrar is a leading UK immigration solicitor and partner at Keystone Law, with over 28 years of experience advising multinationals, blue-chip firms, startups, and high-net-worth individuals. Recognized by The Legal 500, she specializes in both corporate and personal immigration law, sponsor licence compliance, and complex casework.
Recent government proposals suggest that the UK’s approach to Indefinite Leave to Remain (ILR) may change significantly over the next few years. While nothing has yet come into force, the direction of travel is clear: settlement is likely to become less automatic and more conditional.
For HR and People teams supporting Skilled Worker visa holders, these proposals raise important questions about planning, documentation, and employer confirmations — even before any formal rule changes take effect.
This article outlines what’s been proposed, what is still uncertain, and what HR teams should be thinking about now.
What has been proposed?
In a government White Paper published on 12 May 2025, the Home Office set out proposals to move away from the long-standing assumption of ILR after five years for many visa holders.
The proposal is to replace the current system with an “earned settlement” model.
Under this model:
- The default qualifying period for ILR would increase from 5 years to 10 years for most applicants
- Shorter routes to settlement would still exist for certain individuals, based on contribution and integration
The intention is that ILR is no longer granted primarily on the basis of time spent in the UK, but on a broader assessment of conduct, contribution, and integration.
How would “earned settlement” work?
Under the proposals, eligibility for settlement would place more emphasis on factors beyond length of residence, including:
- Conduct: Compliance with immigration conditions and absence of criminal issues
- Integration: English language ability and broader integration requirements
- Economic contribution: Earnings, tax, and National Insurance contributions
- Potential additional factors: Consultation materials also reference possible recognition of public service, shortage roles, or community contribution
The precise weighting of these factors has not yet been finalised.
Other settlement-related changes under consideration
The consultation also proposes changes that may affect families and long-term planning, including:
- Dependants potentially needing to qualify in their own right for settlement, rather than automatically qualifying alongside the main applicant
- Possible changes to access to public funds
- A more individualised assessment of eligibility across household members
For child dependants, the government has indicated that “specific needs and vulnerabilities” would be considered, though details are not yet defined.
When could these changes take effect?
At present:
- No law has changed
- The White Paper itself has no legal effect
The proposals are subject to a public consultation running until 12 February 2026. Depending on the outcome, the government has indicated that changes to the Immigration Rules could begin from April 2026.
The consultation also seeks views on transitional arrangements, including whether people already part-way through a five-year route should be protected. At this stage, those provisions are uncertain.
Who may be affected?
If implemented broadly, the proposals could apply to:
- Individuals currently in the UK on routes that lead to ILR
- Skilled Workers who have not yet been granted settlement
- Dependants who would otherwise expect to qualify automatically
Anyone who already holds ILR would not be affected.
For HR teams, this means that employees currently sponsored — even those well into their qualifying period — may fall under new rules depending on how transitional arrangements are drafted.
What does this mean specifically for Skilled Workers?
Under the consultation proposals:
- The automatic five-year route to ILR for Skilled Workers would no longer be guaranteed
- The default route would become 10 years, unless accelerated settlement criteria are met
The consultation suggests income-linked acceleration, including:
- Taxable income of £50,270+ (for the three years prior to applying) potentially restoring a five-year route
- Taxable income of £125,140+ potentially reducing the qualifying period to three years, subject to other requirements
In parallel, the skill-level threshold for sponsorship is proposed to rise to RQF Level 6 or above, narrowing eligibility to higher-skilled roles.
What about Skilled Worker dependants?
Under the current system, dependants typically qualify for ILR alongside the main applicant, provided residence requirements are met.
Under the proposals:
- Dependants may need to qualify independently
- Settlement timelines within a household may diverge
- HR teams may see more questions about long-term family planning and stability
Details for child dependants remain limited at this stage.
What HR teams should be thinking about now
Even though these proposals are not yet law, they reinforce an important trend:
Settlement is becoming more scrutinised, more individualised, and less automatic.
For HR and People teams, this means:
- Employer confirmations may carry greater weight
- Salary continuity and role stability matter more
- Documentation consistency across years is increasingly important
- Last-minute support creates avoidable pressure and risk
For employees approaching ILR under the current rules, ensuring employer documentation is accurate and internally consistent now remains essential.
Supporting ILR applications in a structured way
One area that continues to cause friction is the employer support letter.
HR teams are often asked to:
- Confirm salary, role, and permanence
- Sign off under time pressure
- Do so without a clear checklist or template
To reduce guesswork, we’re putting together a short, audit-ready ILR HR support bundle that teams use as a structured starting point.
ILR HR Support Bundle (Practical Starting Point – Coming Soon)
The bundle includes:
- An Employer Support Letter template (with explanatory comments)
- A clear HR vs employee checklist
- A one-page red-flag sanity check before signing
It’s designed as a compliance aid, not legal advice, and is often used to identify when early review makes sense. We are finalising this resource. You can join the waitlist or request early access.
Final note
These proposals may change, and transitional protections may be introduced. But the broader direction is clear: settlement decisions are becoming more evidence-driven and employer-sensitive.
For HR teams, a small amount of structure today can significantly reduce stress tomorrow.