The Home Secretary has confirmed that upcoming reforms to indefinite leave to remain (ILR) will be applied retrospectively, as part of a broader βearned settlementβ system aimed at ensuring settlement in the UK is βearned and not automatic.β
Speaking at the Institute for Public Policy Research (IPPR), Shabana Mahmood stated that changes will affect those already in the UK who have not yet secured settled status, particularly low-skilled workers and their dependants who arrived between 2022 and 2024.
The governmentβs recent statement of changes to the Immigration Rules also introduced an increased English language requirement for settlement, which will take effect in spring 2027. Mahmood confirmed that wider earned settlement reforms, including extending the qualifying period for ILR from five to ten years and introducing conditions such as a clean criminal record, no debt to the taxpayer, and proof of work and tax contributions, will come into force this autumn.
The Home Office is currently reviewing more than 200,000 responses to its consultation on earned settlement proposals, which closed in February.
The reforms have raised concern among Labour backbenchers. Bloomberg reports that over 100 MPs wrote privately to the Home Secretary last week, criticising the retrospective application of the earned settlement changes and recent adjustments affecting refugees, including longer ILR pathways and regular reviews of refugee status.
Tony Vaughan MP, a former barrister, said: βWe can improve our immigration system without forgetting who we are as a Labour party. Threatening to remove refugees who have lived here lawfully for 15 or 20 years only breeds insecurity and fractured communities.β
The section on the earned settlement from the Home Secretary’s speech at the IPPR is excerpted and reproduced below:
In her speech at the Institute for Public Policy Research (IPPR), the Home Secretary emphasised that those who contribute to the UK should have a path to settlement and citizenship, but that the right to live in the country permanently must be earned, not automatic.
She explained that the government is reviewing responses to its consultation on new settlement rules. The proposed principles include extending the standard qualifying period for settlement from five to ten years and introducing conditions such as a clean criminal record, no debt to the taxpayer, consistent work and tax contributions, and higher English language proficiency.
Under changes announced this week, English language requirements will rise to A-Level standard for those seeking settlement, while ensuring that English as a foreign language is the focus, not mastery of classical literature.
The government also proposes a flexible approach: some individuals, such as public servants, doctors, nurses, and high contributors to the economy, may qualify for settlement earlier than five years, while others will need to wait longer.
The Home Secretary highlighted that these reforms will apply retrospectively to those already in the UK who have not yet received settled status, particularly low-skilled workers and their dependants who arrived between 2022 and 2024. She warned that failing to apply these changes could result in a Β£10 billion strain on public finances and pressure on public services like housing and healthcare, which would be unfair to British taxpayers and families waiting for social support.
LawSentisβ viewpoint
LawSentis notes that the retrospective earned settlement ILR reforms will significantly impact applicants already in the UK. While the government aims to ensure settlement is βearned,β clarity, fairness, and advance notice are essential. We advise affected individuals to review their status carefully and seek professional guidance to understand the implications of these changes.
If you are affected or need assistance navigating the new rules, contact LawSentis today for expert advice and support with your ILR or settlement applications.