The United Kingdom Home Office on Thursday, November 20, 2025, announced what it described as the biggest overhaul of the migration model, introducing a 3-year residency path for high earners and entrepreneurs.
The new immigration system is described as a merit-based “earned settlement” policy.
The headline change is a new 3-year residency path for high earners and entrepreneurs, shortening the route to Indefinite Leave to Remain (ILR) for those deemed to make the strongest economic contributions.
Under the new rules, individuals earning over £125,000 annually will be able to apply for permanent settlement after just three years of residency.
The Home Secretary, Shabana Mahmood announced the new 3-year residency path, adding that the new rules are designed to reward positive contributions to British life.
Mahmood said that settlement in the UK should be a privilege
She said: “To settle in this country forever is not a right but a privilege, and it must be earned.
“That is not the case. Settlement or indefinite leave to remain comes almost automatically after five years’ residence in this country.
“At that point, a migrant gains access to many of the rights of a British citizen, including to benefits.
“As a result of the unprecedented levels of migration in recent years, 1.6 million are now forecast to settle between 2026 and 2030, with a peak of 450,000 in 2028 – around four times higher than the recent average. That will now change.”
Mahmood also added that new criteria will apply to people wanting a settlement.
She continued: “Firstly, the applicants must not have a criminal record.
“Secondly, they must speak English to an A-level standard.
“Thirdly, they must have made sustained national insurance contributions.
“And finally they must have no debt in this country.”
Mahmood said these four criteria would apply to everyone wanting a settlement.
Aside from the 3-year residency path, Mahmood also announced that low-paid workers and their dependents who came on health and social care visas between 2022 and 2024 would be subject to a 15-year baseline.
This was also contained in a press statement issued on the official website of the UK government.
The statement reads in part: “Illegal migrants and visa overstayers would have to wait up to 30 years to settle, removing the prospect of long-term residence and security in the UK.
“In contrast, doctors and nurses working in the NHS will be able to settle after 5 years. To support economic growth, the brightest and best of international talent could have settlement fast-tracked – with high earners and entrepreneurs able to stay after just three years.
“Due to record-high levels of migration under the previous government, 1.6 million migrants are set to become eligible for settlement by 2030.
Transitional arrangements for those already in the UK will be set out following a consultation. However, the intention is that anyone yet to be granted settlement would be subject to the contribution-based model once the new rules are in force.
“The modifications will expedite their path to residency status, and the same will be true for entrepreneurs. Those earning less than that but more than £50,000 would be required to wait five years under present standards.
“Under the guidelines, anyone earning less than that will have their qualifying time for indefinite leave-to-remain doubled to ten years.”
