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

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. 

I’ll acknowledge, it is a little edgy - in the current climate - to argue for a more nuanced approach to historic criminality in the immigration system. Sounds like the sort of thing that would feed a tabloid journalist with everything they think they need to know about an immigration lawyer.

The issue of indefinite leave to remain (ILR) has been a hot topic in the UK press. The Reform Leader Nigel Farage has suggested that his party would abolish the status and force people with ILR to return to some form of lesser immigration status which would block access to a range of rights which those who obtained the status acquire - access to welfare benefits, free NHS care and home student University fees for young people.

From UKVI’s published statistics on immigration applications, in the most recent reported quarter (March to June 2025) UKVI received 938,527 visit visa applications – the highest ever reported in at least the last 20 years. In that quarter, UKVI also refused 156,659 visit visa applications (and issued 790,708 visas), unsurprisingly, also the highest number reported. The refusal rate for this quarter (which will not cover all applications received) was just shy of 20%.

The Secretary of State for the Home Department (“SSHD”) Yvette Cooper has trained her crosshairs squarely on foreign national families in her recent announcement, declaring the suspension and reform of the refugee family reunion scheme and a review of “the application of Article 8 in the immigration and asylum system.” The suspension came with a statement of changes to the Immigration Rules today at 3pm.

UKVI can issue a whopping fine of up to £60,000 to a company that is alleged to have employed someone illegally in the UK. The size of the fine is partly determined by whether the breach is a first for the business or not.

As political and economic uncertainties continue to shape the global landscape, a growing number of Americans are setting their sights on the United Kingdom, not just for travel or business, but for a new life altogether.

At the start of the year, the Prime Minister outlined the UK Government's vision for making the UK a global leader in AI innovation in its response to the AI Opportunities Action Plan. But does the UK really have a competitive offering for AI talent?

For EU nationals looking to start university in the UK this year, we’ve set out some key issues to consider before applying for your Student visa.