We responded to the Home Office's consultation on Earned Settlement. Under the proposals, settlement will no longer be granted to migrants to the UK automatically after a fixed period. Instead, migrants will need to earn it by demonstrating sustained good conduct, contribution and integration.
Overall, we are concerned that the proposals risk conflicting with the broad intention to position the UK as a global destination for high-skilled talent and run counter to wider objectives, including supporting regional growth and the global competitiveness of the UK. The government’s Industrial Strategy, and the Financial and Professional Services sector plans, correctly recognise that the ability to mobilise global talent is a critical component of the UK-based financial and related professional services industry’s success.
Key messages and recommendations include:
- Avoid retrospective application of new rules: People already on existing Skilled Worker routes have structured their careers and financial commitments around current settlement timelines. Changing the rules mid‑journey risks eroding trust and harming the UK’s reputation for stability and fairness. A transition period and grandfathering protections are critical.
- Align settlement timelines for dependants: The UK’s attractiveness relies on predictability for families. Divergent timelines for settlement — potentially up to a seven‑year gap between partners — would deter top talent. Applying a consistent qualifying period, potentially through household rather than individual income, would support family stability and recruitment.
- Provide clarity for dependent children nearing adulthood: Unclear rules risk disruption to education plans and family decision‑making. Clear guidance is essential for international applicants assessing long‑term prospects in the UK.
- Introduce regionally‑informed and progression‑based salary thresholds: The proposed thresholds (£50,270 and £125,140) don’t reflect regional pay variations, early‑career salaries, or the realities of long‑term talent pipelines. Adjusting thresholds to reflect career progression and regional differences will avoid penalising talented individuals and employers outside London.
- Reduce complexity and provide workable guidance for employers: Employers will face higher compliance burdens, uncertainty in workforce planning, and increased costs. The proposed four‑pillar assessment (character, integration, contribution, residence) requires clearer definitions, evidence expectations, and worked examples.