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UK’s new ‘Earned Settlement’ set to reshape Indian migrationIndians face longer wait for permanent residency.
Gulshan Sachdeva
Last Updated IST
<div class="paragraphs"><p>India and UK flags. For representational purposes.</p><p></p></div>

India and UK flags. For representational purposes.

Credit: iStock Photo

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Immigration has become one of the central political issues across the Western world. The United Kingdom is also on the verge of major changes to the post-Brexit migration system introduced in January 2021, from which Indians have benefited significantly.

The government has launched a formal consultation to overhaul its permanent residency rules, known as Indefinite Leave to Remain (ILR). The proposal introduces an ‘Earned Settlement’ system that would replace the current five-year ILR route with a standard ten-year qualifying period for most migrants.

The government had earlier issued a controversial White Paper, Restoring Control over Immigration. It is now consulting on proposals for implementing these changes.

The British government is proposing a shift from “automatic” to “earned” settlement. Under this plan, the default qualifying period for most migrants would increase from five to ten years, with applicants assessed on four criteria. First, they must meet strict character requirements, including a clean criminal record and full compliance with immigration rules. Second, they must show meaningful engagement with British society, such as meeting a higher English-language standard (B2). Third, they must demonstrate a genuine contribution to the UK, for example, through regular income-tax payments. Fourth, they must satisfy the continued-residence requirement.

Depending on specific criteria, the settlement period could be shortened or extended. For example, high earners—those making £125,140 for three consecutive years, or £50,270 for three years—may receive reductions of three years and five years respectively. Similarly, working in the National Health Service (NHS) or teaching for five years could reduce the qualifying period to five years. Meaningful community or voluntary work may shorten it by up to three years. An additional one-year reduction may be granted for achieving an advanced level of English (C1).

However, the qualifying period can be extended by five years for medium-skilled workers. It may be extended by an additional five or even ten years if the applicant has received public funds. For individuals with an illegal entry, entry on a visit visa, or an overstay of more than six months, the settlement period could increase by up to 20 extra years.

Under the new proposals, dependants (except children under 18) may also need to meet the settlement requirements independently, rather than qualifying automatically with the main applicant as they do now. The standard post-study work period may be reduced from two years to 18 months for Bachelor’s and Master’s graduates, while PhD graduates would continue to receive a three-year work visa.

More than 600,000 health and social care workers and their dependants—many of them Indians—who arrived in the UK during the pandemic may now have to wait up to 15 years for permanent residency. The 616,000 health and social care visa workers and their dependants who came to the UK between 2022 and 2024 will now have to wait 15 years for ILR. This visa route was closed earlier this year after the UK government said individual workers were being exploited and abused.

These discussions are being followed closely in India, as Indians receive a significant share of UK work visas and permanent residency grants. India’s relations with the UK have also strengthened in the post-Brexit period. The upgrade of the Strategic Partnership to a Comprehensive Strategic Partnership in 2021 coincided with the launch of the new post-Brexit migration system.

The end of free movement with EU member states and the introduction of the post-Brexit migration regime marked a major shift in UK immigration policy. Earlier, when the UK joined the then European Economic Community, it enabled free movement with much of Western Europe but restricted immigration from Commonwealth countries, including India.

From the 1950s, many Indians migrated to the UK to work in the textile and manufacturing sectors, as well as in the National Health Service (NHS). In the 1960s and 1970s, a significant number of Indians arrived after being expelled from Kenya and Uganda. From the early 1970s to the mid-1990s, Indian migration declined.

With Labour’s liberalisation policies from 1997, the number of Indians coming to the UK for work and study increased, particularly on high-skilled work visas in the ICT sector. The Conservative-led coalition government introduced new restrictions in 2010. However, in the run-up to Brexit, the system was liberalised again from 2019 to attract talent from non-EU countries. The introduction of a two-year post-study work visa attracted many Indian students to the UK.

During the FTA negotiations, India sought to link the agreement with short-term mobility for professionals. However, the political mood in the UK—much like in many European countries—has been strongly against immigration liberalisation. The Conservative government under Rishi Sunak (2022–24) was deeply concerned about the arrival of asylum seekers on “small boats.” The Labour government under Keir Starmer has also faced widespread unrest driven by hostility towards immigrants. Nigel Farage’s Reform UK party has capitalised on this sentiment, making immigration a central issue in British politics and pressuring mainstream parties to adopt tougher positions.

Mobility has not been formally linked to the India–UK Comprehensive Economic and Trade Agreement (CETA), which aims to boost trade and investment. The 2021 Migration and Mobility Partnership, intended to facilitate the legal movement of students and professionals and strengthen cooperation on irregular migration, has also proven to be ineffective.

However, students and businesses in India remain hopeful that the trade agreement may create additional opportunities in migration and mobility. Tougher immigration and visa rules in the United States under the Trump administration are also prompting many students and skilled workers to explore other destinations, including the UK. This was a good opportunity for the UK to attract students and talent from India, but the tougher immigration rules and shorter post-study work visas may prove discouraging.

Yet, despite stricter immigration regimes, most European countries remain eager to attract talented students and high-skilled workers. With its youthful population and strong higher-education ecosystem, India will remain a major contributor to mobility flows to most European countries, including the UK. The profile of migrants may change, but the overall numbers are unlikely to decline significantly.

(Prof Gulshan Sachdeva is Jean Monnet Chair at the Centre for European Studies, Jawaharlal Nehru University)

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(Published 30 November 2025, 02:06 IST)