MPs have backed a ten-year residency requirement before migrants can obtain Indefinite Leave to Remain, signalling a major shift away from the current five-year routes. If adopted, the change will force employers to budget for extra visa extensions and could affect talent retention strategies. Businesses are urged to audit assignment policies ahead of expected implementation in 2027.
A cross-party Home Affairs Committee report (HC 1409) released on 20 March 2026 recommends that all migrants should normally spend a minimum of ten years in the UK before they can qualify for Indefinite Leave to Remain (ILR). The report is the first detailed scrutiny of the government’s December 2025 White Paper, which proposed replacing automatic settlement routes with an ‘earned settlement’ model linked to economic contribution and good compliance records. Under the committee’s preferred option the current five-year ILR pathways (Skilled Worker, Global Talent, Innovator Founder and certain family routes) would be grandfathered for those already on them, but closed to new applicants from 1 January 2027.
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Migrants arriving after that date would need to complete ten lawful residence years, demonstrate income at least 125 % of the National Living Wage, and pass an expanded “Life in the UK and Nations” test. Employers would retain responsibility for record-keeping during the qualifying period, a change that will increase HR compliance costs for multinationals operating long-term secondments or graduate programmes in Britain. The committee argues the longer baseline will reduce churn, improve integration and align settlement policy with other OECD countries such as Canada and Australia. However, it warns that without parallel reforms—faster Home Office processing, clearer digital status records and simpler switching rules—British firms risk losing mid-career international talent to competitor jurisdictions. Business groups including the CBI and techUK told MPs that a decade-long wait could deter senior specialists needed for large infrastructure projects and scale-ups. Practically, mobility managers should review assignment lengths that currently anticipate five-year ILR, build in additional visa extension budgets and re-assess retention incentives. Lawyers expect transitional guidance later this year, but advise flagging the potential change in offer letters from Q3 2026 onward. The committee also calls on ministers to confirm that children born in the UK to parents on work visas will continue to benefit from existing citizenship rules, a point of particular interest to globally-mobile families. With the government under pressure to reduce net migration, most observers expect the Home Office to accept the ten-year recommendation—though a final decision is unlikely before the autumn party-conference season. Companies should therefore plan for a significantly longer settlement horizon while maintaining flexibility should the policy soften after consultation.
For organisations and individuals seeking practical help navigating the changing UK immigration landscape, VisaHQ provides real-time visa information, document checking and submission services tailored to the UK; you can explore their tools at https://www.visahq.com/united-kingdom/
Migrants arriving after that date would need to complete ten lawful residence years, demonstrate income at least 125 % of the National Living Wage, and pass an expanded “Life in the UK and Nations” test. Employers would retain responsibility for record-keeping during the qualifying period, a change that will increase HR compliance costs for multinationals operating long-term secondments or graduate programmes in Britain. The committee argues the longer baseline will reduce churn, improve integration and align settlement policy with other OECD countries such as Canada and Australia. However, it warns that without parallel reforms—faster Home Office processing, clearer digital status records and simpler switching rules—British firms risk losing mid-career international talent to competitor jurisdictions. Business groups including the CBI and techUK told MPs that a decade-long wait could deter senior specialists needed for large infrastructure projects and scale-ups. Practically, mobility managers should review assignment lengths that currently anticipate five-year ILR, build in additional visa extension budgets and re-assess retention incentives. Lawyers expect transitional guidance later this year, but advise flagging the potential change in offer letters from Q3 2026 onward. The committee also calls on ministers to confirm that children born in the UK to parents on work visas will continue to benefit from existing citizenship rules, a point of particular interest to globally-mobile families. With the government under pressure to reduce net migration, most observers expect the Home Office to accept the ten-year recommendation—though a final decision is unlikely before the autumn party-conference season. Companies should therefore plan for a significantly longer settlement horizon while maintaining flexibility should the policy soften after consultation.
Disclaimer
This article is intended for general information purposes only and does not constitute legal advice. For advice specific to your situation, please contact our team at T & M Legis for a consultation with our Legal Experts.
