UK Settlement Overhaul

Home Secretary Shabana Mahmood announced the proposed changes at the Labour Party conference in response to the Government's attempts to bring down net migration.

She explained that it would no longer be enough to just live and work in the UK. Instead, eligible applicants for "Indefinite Leave to Remain", or "ILR", the term given by the Home Office to permanent residency, would need to demonstrate significant ties to the UK, with community involvement, integration and strong English language skills at the forefront of the changes.

The Home Secretary said that the Government will consult on the plans in the coming months, with a focus on ensuring hiring practices were fair. Businesses looking to sponsor potential employees would need to also provide training to resident workers for the privilege to sponsor those from abroad.

Settlement would only be possible in the future for individuals who are working, making National Insurance contributions, have not claimed benefits, are able to speak English to a high standard and do not have a criminal record.

She said evidence would be required of "truly giving back to the community", through volunteering time to local causes, with some migrants being eligible for ILR before 10 years based on their contributions, while others would be barred entirely from permanent residency.

Current ILR Requirements

At present, individuals in the UK, who hold an eligible visa, can apply for ILR after five years in the country. They are then able to apply for citizenship a year later.

In addition to visa-specific requirements, they must not be outside of the UK for more than 180 days in any 12-month period across the five years, should demonstrate an ability to speak English to a high level and must pass the Life in the UK test, which involves 24 questions about British society, values, history and general life in the UK.

Cost Implications and Uncertainties

The Home Secretary's speech mirrored the Immigration White Paper, published earlier in the year and added very little practical detail. It did not tackle the position for existing migrant workers and it was unclear whether transitional arrangements would be made available to them, allowing their applications to be determined under the present rules, having entered the UK on this basis.

The cost implications of the changes also remain unclear for those already here. Currently, an extension application under the Skilled Worker route carries a £7,515 price tag, including a Certificate of Sponsorship fee of £525 and the Immigration Skills Charge cost of up to £1,000 per year of the visa, both of which are payable by the sponsor. The total also includes a mandatory charge for the Immigration Health Surcharge, with all migrants contributing £1,035 per year of their visa to the NHS.

Should the 10-year route now apply to existing migrants, not only will they need to consider the cost of the final Indefinite Leave to Remain application and the new community rules, but they will need to factor in the cost of extensions.

Next Steps and Guidance

The Immigration team at Fieldfisher are monitoring the proposals closely and will provide updates once the changes are implemented.

Should you wish to discuss this article further and assess how they may impact your business or employees, please contact Rhona Azir and the team.