What Is Changing?

The government has proposed that all new visa routes with a path to permanent residence will now require 10 years of continuous residence before becoming eligible for settlement, up from the current 5 years.

This includes the Skilled Worker route, which is one of the most common pathways to ILR.

Why Is This Significant?

The 10-year proposal not only increases the duration of stay required for settlement, but also the financial burden on both visa holders and their sponsors.

This follows other recent cost increases such as:

• A 120% increase in the Certificate of Sponsorship fee

• A proposed 32% increase in the Immigration Skills Charge

• Higher visa and sponsorship application fees

• Increases in the cost of Indefinite Leave to Remain applications

   

What Does This Mean for Employers?

UK employers sponsoring overseas workers must now plan for longer-term sponsorship, potentially doubling the time (and cost) of supporting an employee’s stay in the UK.

This affects:

• Recruitment budgets, which must accommodate longer sponsorship timelines.

• Retention strategies, as foreign workers may reconsider long-term UK employment if settlement becomes harder to achieve.

• Compliance planning, as extended visa periods bring ongoing responsibilities for right-to-work checks and reporting.

🧾 Employers should also consider whether changes apply to existing visa holders or only new entrants. This distinction will be critical for legal and operational planning.

Will the 10-Year Rule Apply to Existing Visa Holders?

Currently, this remains unclear. While the Home Secretary has confirmed there will be a consultation, no assurances have yet been made for those already on a settlement pathway under current rules.

However, there is an important legal precedent worth noting:

🔍 2009 HSMP Judicial Review: A Relevant Precedent

In 2009, the UK Home Office attempted to retroactively change settlement rules for those on the Highly Skilled Migrant Programme (HSMP). The High Court ruled this unlawful, stating:

“Good administration and straightforward dealing with the public require that the terms of the original scheme be honoured. Not to restrain the impact of the changes would… give rise to conspicuous unfairness and an abuse of power.”

This ruling suggests that applying the 10-year rule retrospectively may lead to successful legal challenges.

What Should Visa Holders Do Now?

If you are already in the UK on a Skilled Worker visa or another route with a path to settlement:

• Continue tracking your qualifying time carefully.

• Keep up to date with policy announcements and consultation outcomes.

• Seek legal advice early to protect your route to settlement.

What Should Employers Do Now?

Employers should proactively:

• Budget for 10-year sponsorship timelines.

• Review recruitment strategies, particularly if international hiring is key.

• Assess employee records to distinguish between existing and prospective visa holders.

• Plan legal contingencies should retrospective rules be introduced.