UK Immigration: Settled status and earned settlement could not be more different

With lots of students finishing their exams at this time of year, we often receive queries from hiring teams, looking to understand the Student visa category and how these candidates could transition into longer-term roles.

We set out below the different stages at which a Student visa holder might be hired, and how this impacts their right to work and the future process to join the business longer-term.

Comments from Chancellor Rachel Reeves in January at Davos have materialised into two new schemes to attract more high-growth businesses to the UK.

Announced as part of London Tech Week, the two new ‘concierge service’ schemes include visa fee reimbursements and a fast-track for Office for Investment-backed overseas businesses.

These schemes are announced as migrants, employers and prospective inward investors continue to hold their breath over whether the government will follow through on its drastic earned settlement proposals, as early as this Autumn. Uncertainty is exacerbated by the possible leadership contest in the near future which could mean a change in direction on immigration policy.

The start of Pride Month in the UK provides an opportunity for immigration lawyers to reflect on the challenges facing LGBTQ+ asylum-seeking clients.

Still fresh in our minds is April’s BBC investigation, which suggested the existence of a shadow industry of legal advisers encouraging migrants to falsely claim to be gay in order to make asylum claims that would enable them to remain in the UK. While allegations of abuse of the asylum system should be investigated, the way sexuality‑based asylum claims are discussed in public debate matters. Focusing on isolated examples of alleged abuse risks misrepresenting how these claims are actually assessed and reinforcing assumptions that cause real harm to LGBTQ+ people seeking protection.

This type of reporting raises concerns as it obscures the reality of the system. It exaggerates the prevalence of fraud and risks embedding a culture of disbelief that already presents significant barriers for genuine claimants.

One question clients often ask is whether an employer can lawfully pay a sponsored worker more than a non-sponsored worker doing the same role, particularly given the increases to minimum salary thresholds under the Skilled Worker route.

The Migration Advisory Committee (MAC) wants to know what needs to change for the UK to be competitive about attracting Global Talent.

The MAC has launched a call for evidence on the Global Talent and Innovator Founder visa routes. The deadline is 11:59pm on 1 May 2026. Here's why this matters - and why you should respond

Historically, a non domiciled divorcing couple have been able to mitigate their UK tax liabilities when making a lump sum payment to the other party to the divorce. Following guidance from HMRC in 2025, however, it seems that this particular tax mitigation strategy is no longer available and advice needs to be taken in respect of each party’s tax status, the timing and mechanism of payments and the likely tax liability.

It may feel like an administrative burden to keep personal affairs in order, be that your Will, financial or estate planning.  That burden can be even greater when the rules of two (or more) countries are relevant.  We regularly help French nationals living in the UK to take steps to plan their personal affairs, given that the legal and administrative rules of two countries will be relevant to their legal documents. 

The UK government’s new “earned settlement” proposals reveal a stark divide in how people can secure their right to live permanently in the UK. For EU, EEA nationals and Swiss nationals and their families who were living in the UK before Brexit, the EU Settlement Scheme increasingly seems a beacon of fairness. For everyone else, the future looks far less certain—and much harder.

As 2026 begins, the UK is entering a period of the most substantial reform of employment rights in a generation. The Employment Rights Act 2025 (“ERA 2025”) became law in December 2025 following extensive Parliamentary debate and marks a decisive shift in the balance between employers and workers. Overall, ERA 2025 represents a material strengthening of workers’ rights in the UK, bringing employment protections closer to European standards in several key respects. 

The UK Government’s Earned Settlement consultation proposes a fundamental shift in how migrants achieve Indefinite Leave to Remain (ILR). Instead of a time-based system, settlement would be earned through measurable contributions and integration. For the tech sector—one of the UK’s fastest-growing industries—these changes could have far-reaching consequences. 

As I mentioned previously, I am still trying to get my head around the issues that continue to arise from the recent announcement made by the Home Secretary in relation to the settlement provisions. For now, I want to unpack one part of the change.

The Border Security, Asylum and Immigration Act 2025 (which has just completed the parliamentary process by receiving Royal Assent on 2 December 2025) will introduce significant changes to right to work checks. The law hasn’t been implemented yet but employers need to be aware of the implications.

The festive season is a time for joy, connection, and celebration. Yet for employers, it also brings heightened risks. Work social events, whether Christmas parties, drinks after work, or team dinners, are legally considered an extension of the workplace. That means employers can be held liable for misconduct that occurs at these gatherings, even when no harm was intended.

The Immigration Skills Charge (ISC) will increase by 32% from £1,000 per year of the visa to £1,320 per year of the visa. For small sponsors the ISC will increase from £364 to £480 per year.
  

The immigration policy white paper was released on 12 May 2025 and there were subsequent Skilled Worker rule changes on 22 July. On 14 October the Home Office released a statement of changes to the Immigration Rules setting out further upcoming rule amendments flowing from the white paper. There was also a Home Office press release.

We focus here on two updates - one on travel to the EU and one on the Temporary Shortage List for Skilled Worker applications based on lower skilled roles.

For many, the subject of pensions is one that is barely thought about until absolutely necessary. The same is certainly true in the context of divorce proceedings. Unless retirement is imminent, asking clients to think about pensions is a difficult concept for them to grasp. This is particularly true of clients who would be classed as the financially weaker party who may not have ever, or at least not for a long time, contributed to any form of private pension. Self-employed individuals can also find themselves in this same predicament. 

Francophone couples living in England or those who own assets here may be surprised at the differences between a standard English prenuptial agreement and the ‘contrats de mariage’ which are so common across continental Europe.

Family relationships involving international couples can be complex and the need for cross-border planning and an understanding of other jurisdictions is critical for family lawyers working in London. Claire Wood helps clients to understand some of the differences in approach across the channel.