Consultation on accelerated ILR for high-earning foreign nationals

Last year, the Home Office published its ‘Fairer Pathway to Settlement’ 12-week consultation on proposed changes to the UK settlement system for foreign nationals living and working in the UK. With the consultation now approaching its close on 12 February 2026, the government has suggested an accelerated turnaround, with implementation and new immigration rules expected as early as April 2026. These reforms form part of a broader policy objective to prioritise long‑term economic contribution and social integration when assessing eligibility for settlement.

The proposals represent a significant shift in how Indefinite Leave to Remain (ILR), and in turn, British nationality, may be obtained. The Home Office has proposed increasing the standard qualifying period for settlement from five years to ten years, departing from the historic approach focused primarily on time‑based eligibility.

Key proposals

One of the key proposals in the consultation is the introduction of an ‘earned settlement’ model. Under this model, individuals would secure settlement based on a combination of residence, economic contribution, integration and good character. While this signals longer waits for many, the Home Office aims to recognise and reward individuals who make a strong economic contribution through accelerated routes to ILR.

For HR professionals, this reflects a clear policy shift, tying immigration outcomes more closely to earnings and measurable economic value. As a result, salary levels, pay structures and career progression could play a more direct role in shaping employees’ settlement journeys.

For most Skilled Worker visa holders, the standard qualifying period is expected to increase from five years to ten years. However, the Home Office has proposed a key exception for designated ‘high earners’, which could significantly influence talent strategy across all sectors. While many industries use variable pay or reward structures – such as bonuses, equity incentives, allowances and non‑salary benefits – only PAYE base salary will count towards the earnings thresholds for accelerated ILR.

This may prompt organisations to reassess remuneration strategies for international employees. According to the consultation, individuals earning £125,140 or more per year (PAYE base salary) – aligned with the UK’s additional rate tax threshold – could qualify for ILR on an accelerated basis after three years (a two-year discount on the current required five-year residence criteria). Those earning between £50,270 and £125,140 – the higher‑rate tax band – may qualify after five years, rather than the proposed ten. For international employees, there may be a benefit in structuring pay, optimising towards base PAYE salary and deferring more varied reward packages, bonuses or other incentives until after ILR is secured.

Opportunities and challenges

For HR teams, these proposed changes present both opportunities and challenges. Shorter ILR timelines could make UK‑based roles more attractive for senior and highly skilled candidates, strengthening recruitment and retention strategies. At the same time, organisations may need to manage expectations for employees who do not meet the earnings thresholds and could face significantly longer qualifying periods, or who may struggle to meet rising salary requirements for sponsored roles.

The consultation closes on 12 February 2026, and new immigration rules may take effect as early as April 2026. While transitional provisions for existing visa holders are anticipated, there has been an indication that these are not guaranteed and remain subject to consultation outcomes.

In the meantime, HR professionals should:

• Audit current sponsored employees’ residence timelines to identify those eligible for ILR under existing rules.
• Evaluate salary structures across sponsored roles to understand who may qualify for accelerated ILR.
• Consider future workforce planning, particularly for roles where ILR prospects influence retention.
• Prepare clear internal communications to support employees whose settlement timelines may be affected.

These changes signal a material shift in the UK’s immigration landscape, and now is the time for HR leaders to prepare their organisations, support their employees and stay ahead of evolving workforce implications.