Proposed Changes to ILR: What Businesses Need to Know

The UK Home Office is currently consulting on proposed changes to Indefinite Leave to Remain (ILR) that could significantly impact employers and international talent planning. These changes form part of a broader drive to align immigration policies with long-term residency objectives, and they may affect both existing employees and future hiring strategies.

Here’s what businesses need to know.

The Core Proposals

The proposed reforms focus on tightening the rules around eligibility and reinforcing the government’s commitment to integration and long-term residency. Key changes under consideration include:

• Longer qualifying periods: The government is considering extending the minimum residence period before an individual can apply for ILR from five years to eight years in some categories.
• Revised salary thresholds: Employees seeking ILR may need to meet higher salary requirements, aligned with updated Skilled Worker thresholds.
• English language and integration criteria: Stronger language and “life in the UK” requirements may be introduced to ensure better integration.
• More rigorous continuous residence rules: Breaks in UK residence (for example, due to overseas assignments) may become more restrictive.

Impact on Employers

These changes could have wide-reaching implications:

• Workforce planning: Longer waiting periods for ILR could affect staff retention strategies, particularly for skilled migrants weighing up long-term settlement options in the UK versus other countries.
• Cost implications: Delays in ILR may lead to additional visa renewal fees, immigration health surcharges, and ongoing sponsorship obligations.
• Contract negotiations: Employers may need to revisit employment terms, relocation support packages, and future ILR sponsorship commitments.

Key Considerations for HR and Legal Teams

To prepare for potential changes, businesses should:

• Audit your workforce: Identify employees on Skilled Worker or other routes approaching ILR eligibility.
• Review immigration policies: Ensure your internal guidance reflects potential delays and new compliance requirements.
• Engage early with impacted employees: Transparent communication helps build trust and provides clarity on their long-term options.
• Monitor the consultation process: The Home Office has opened a consultation period (expected to close later this year), so timely input from employers can help shape policy outcomes.

Next Steps

While these changes are still at the proposal stage, they signal a firmer approach to ILR and long-term migration. Businesses relying on international talent should take this opportunity to review their immigration strategies and prepare for a more complex ILR pathway.