What's Happening?
The UK Government has released a Command Paper proposing significant changes to immigration and settlement policies. The new system aims to replace the current five-year route to Indefinite Leave to Remain
(ILR) with a merit-based model, extending the qualifying period to ten years for most migrants. Eligibility will be assessed based on character, integration, contribution, and residence. The consultation period for these proposals closes in February 2026, with implementation expected to begin in Summer 2026.
Why It's Important?
The proposed changes represent a major shift in the UK's approach to immigration, emphasizing integration and contribution over time-based criteria. This could impact workforce planning and compliance for businesses relying on international talent. The extended settlement timeline may increase administrative complexity and costs for employers, particularly in sectors like healthcare and technology. The policy aims to balance government objectives with workforce stability, but uncertainties around transitional arrangements could pose challenges for businesses.
What's Next?
The consultation period offers an opportunity for employers to influence policy and advocate for practical transitional measures. Businesses should prepare for potential changes by conducting workforce audits and updating immigration policies. The government is expected to publish a Statement of Changes in Spring 2026, providing further clarity on the new system. Employers will need to adapt to the new requirements to ensure compliance and support employee retention.
