
Far from settled: The government’s ‘earned settlement’ consultation
Article
How long should people have to wait until they can permanently settle in the UK? This is the core question underpinning the Home Office’s ‘earned settlement’ policy, currently out for consultation.
While the measures have received surprisingly little attention compared to some of the government’s other eye-catching asylum reforms, their impacts will be felt across the immigration system, affecting many hundreds of thousands of people.
The government’s earned settlement policy
The proposals under consultation are fiendishly complex, but the central idea is that the qualifying period for settlement will double from the current five years to a default of 10. People on Skilled Worker visas who have been sponsored for jobs which are designated as below graduate level – including large numbers of care workers – will have to wait for a default of 15 years.
From there, the length of the wait for individuals can be shortened or lengthened depending on their circumstances or actions. Speak English to a high level? The Home Office will knock a year off. Earn £50,270 for at least three years? The Home Office will take off five. On the other hand, claiming benefits could extend the wait for settlement for another five to 10 years, while overstaying a visa for more than six months could add an extra 20.
The length of the wait for individuals can be shortened or lengthened depending on their circumstances or actions
Principles for earned settlement
The idea of a settlement policy which recognises contribution and incentivises integration is a defensible one. But the design of the outline proposals – with their long waits for settlement, tough penalties, and wide-ranging coverage – risks proving counterproductive.
For the new rules to be a success, there are some core principles which the government should follow:
- The earned settlement reforms should deliver stronger integration and economic self-sufficiency. This could mean, for instance, supporting people on routes to settlement to find well-paid work and improve their language skills.
- They should recognise contribution and commitment to community. This would entail a wider understanding of contribution beyond a fiscal one – for example, providing a shorter route to settlement for those who volunteer in their local community.
- They should support the government’s ambitions to reduce child poverty. That is, the Home Office should align its approach with the government’s child poverty strategy, which committed to getting vulnerable children the support they need regardless of immigration status.
- They should promote economic growth and higher living standards. Crucially, this means designing an internationally competitive system which attracts talented workers.
- The government should lay out clear and comprehensible rules. In order to secure public confidence, the system should be reasonably easy to understand. Moreover, it should be possible for migrants on routes to settlement to navigate the system and maintain their status without the need for specialist advice.
- The Home Office should treat migrants already here fairly and consistently. This means developing a system which follows the rule of law and safeguards those who are already on routes to settlement in the UK.
Who is most likely to be affected?
This final principle has particular significance for the cohort of people currently on routes to settlement. Based on the latest information from the earned settlement consultation, we estimate that around 1.35 million people already on routes to settlement could be faced with a default longer qualifying period.
As table 1 shows, this is primarily made up of people on work routes – both main applicants and dependants – as well as refugees. But it is worth noting that the figures do not take into account all aspects of the policy. For instance, BN(O) migrants will remain on a default five-year route and so are not included in our estimate, but they will still face a mandatory requirement to earn more than £12,570 in order to qualify for settlement. Moreover, people on the existing 10-year family route – some of whom have the right to receive public funds – risk facing even longer waits to settlement due to claiming benefits.
Table 1: People currently on routes to settlement who will face a longer default qualifying period
Source: IPPR analysis of Migrant Journey 2024 / Home Office FOI. Note: Numbers rounded to nearest 1,000. For further details of the methodology, see below.
Within this, the most common countries of nationality are India, Nigeria, and Pakistan (see figure 1). Twenty-three per cent of the cohort – or 309,000 – are children, most of whom are dependants on work routes. It is not clear how children will be treated within the earned settlement policy, but the indication is that they will secure settlement at the same time as their parents or will be assessed in their own right. Either way, under the current proposals, hundreds of thousands of children face a new baseline wait of 10 or 15 years to securing settlement. This creates deep uncertainty for families and poses significant barriers to entering higher education.
Figure 1: Nationality of people on routes to settlement who could be affected by earned settlement reforms
Number of people with valid leave to remain at end of 2024Source: IPPR analysis of Migrant Journey 2024 / Home Office FOI. Note: Numbers rounded to nearest 1,000.
The case for a legacy clause
Our analysis suggests that there are at least 1.35 million people currently on routes to settlement in the UK who will be subject to a longer default qualifying period. Based on the principles outlined above, there is a strong case that this group should be protected from the new rules through a legacy clause (also known as ‘grandfathering’).
First, it is not fair to apply the rules retrospectively. Migrants arriving before the rules are introduced have come with the expectation that they would be able to claim settlement after five years. Indeed, the government still advertises this clearly for most routes. A delay to settlement means additional immigration fees, greater uncertainty, and – for those on a Skilled Worker visa – less job flexibility. Changing the rules midway along someone’s journey to settlement appears inconsistent and unfair.
Changing the rules midway along someone’s journey to settlement appears inconsistent and unfair
The prime minister has been clear that Reform’s proposal to strip people of their settled status is immoral and racist. But doubling the length of the qualifying period for people already on routes to settlement is only one step removed from revoking settlement from those who already have it. Moreover, it leaves them more vulnerable to deportation by a future government. If the government wants to take a moral stance against the idea of revoking settled status, then it will need clear blue water between its policy and Reform’s.
Second, the incentives to integrate do not work properly for people already here. As explained above, the ‘earned settlement’ approach shortens the qualifying period for people who make social and economic contributions and lengthens it when people claim benefits or overstay. But those who have already started their journey to settlement will be at a disadvantage under the new system, because these rules were not in place when they arrived in the UK.
For instance, those already on routes to settlement who have claimed benefits previously could face a longer qualifying period, even though they were not aware they would be penalised at the time they made a claim. Rather than incentivising integration, applying the policy retrospectively risk breeding resentment and demoralisation.
Third, applying earned settlement rules retrospectively will have particularly severe impacts for child poverty. Households most at risk of poverty within the immigration system are those on low incomes – in particular, those sponsored for care worker roles on the Health and Care route, given their low salaries. Extending the qualifying period for settlement will keep these families in poverty for longer. The care worker route has now been closed to out-of-country applicants, so this is an issue that only applies to people already on routes to settlement. Focusing only on new entrants – rather than those already on routes to settlement – is one of the most straightforward ways to minimise the impacts of the policy on child poverty.
With the consultation deadline fast approaching, the government will face a number of critical decisions for its earned settlement reforms, from the treatment of dependent adults and children to the measuring of different types of economic and social contribution. But one of the most fundamental is whether or not the rules should apply retrospectively. If the government wants to deliver an immigration agenda underpinned by the principles of fairness, integration and contribution, at a minimum it should protect the rights of people who have already started their route to settlement.
Methodology
The analysis uses the Home Office’s Migrant Journey dataset to estimate the number of people who will face a default longer route to settlement under the government’s proposals. We only focus on the default qualifying period and do not take into account adjustments on the basis of individual characteristics such as salary, language proficiency, and volunteering.
To calculate our estimate, we focus on migrants whose year of initial leave was 2021 or later and who, at the end of 2024, were on routes to settlement which are subject to the new policy. We include in our analysis workers and their dependants, as well as people with refugee permission. We do not include people on temporary immigration routes (eg students) or on routes which will continue to face a five-year qualifying period (eg BN(O) visa holders).
There are, however, some limitations to this analysis. The Migrant Journey data does not precisely capture immigration patterns, as it focuses on the length of time someone has a valid visa in the UK. A small number of people in the worker category are intra-company transfers, who are not on a pathway to settlement. Migrants who were on a temporary route before 2021 and then switched on to a pathway to settlement since 2021 have been excluded, even though they will also be affected by the reforms. The figures also relate to the end of 2024, so they do not reflect changes after this point.
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