People

How would earned settlement reforms impact construction?

Image: Roman Milert | Dreamstime.com
Image: Roman Milert | Dreamstime.com

While the construction industry faces ongoing skills shortages, proposed changes to current settlement rules could add to the challenges employers must navigate.

A Fairer Pathway to Settlement, the UK government’s consultation paper on earned settlement reforms, published on 20 November, marks a significant shift in immigration policy. 

The changes could extend settlement timelines and introduce stricter contribution and integration factors. 

For skilled worker migrants in roles the government considers “lower” skilled, the pathway to settlement could stretch to as long as 15 years. 

Public consultation

The government invites individuals and organisations to participate and provide examples of the potential impact of the proposals, which may take effect as early as April 2026. 

It also asks whether transitional arrangements should apply to people already on a pathway to settlement.

The construction sector relies heavily on migrants for its workforce and should therefore contribute to the consultation, particularly on transitional arrangements, the treatment of lower‑skilled workers and dependants.

The consultation is open until 12 February 2026 and can be found here.

Key reform proposals

The proposals would shift from an entitlement-based system to one of earned privilege based on a time-adjustment model that may increase or decrease the qualifying period. 

The proposals are fuelled by concerns over the high number of migrants who may become eligible for settlement in the coming years and aim to restrict this.

The baseline qualifying period for most immigration routes, including the skilled worker route, would increase from five to 10 years. 

All applicants aged 18 and over, including dependants, would need to meet eligibility requirements set out under the following pillars:

  1. Suitability – have a clean criminal record, with no current litigation, public debt or immigration breaches.
  2. Integration – meet the English language requirement at level B2 CEFR and pass the Life in the UK test.
  3. Contribution – earn an annual taxable income of at least £12,570 for three to five years, with no NHS debt. The government has not yet confirmed how taxable income will be defined.

The government is not consulting on whether to include these pillars, except for the period of time individuals should have to meet the income threshold under the contribution pillar. 

The consultation focuses on the factors that could reduce or increase the qualifying period and the impact of the proposals on the individuals and organisations.

The proposals also include factors which could reduce the qualifying period and include economic and civic contributions:

  • High earnings for at least three years – annual taxable income of £50,270 or more would reduce it by five years, while an income of £125,140 or more would reduce it by seven years.
  • Sustained community work (volunteering) could reduce it by three to five years.
  • Meeting the English language requirement to level C1 CEFR (Advanced English) would reduce it by one year.

The proposals also include factors which could increase the baseline beyond 10 years, for example: 

  • Receipt of public funds.
  • Arriving in the UK illegally.
  • Arriving in the UK on a visitor visa.
  • Overstaying previous immigration permission for more than six months.

Potential impact on construction occupations 

The government proposes to reduce the qualifying period only to those working in skilled occupations – that is, at Regulated Qualifications Framework (RQF) level 6 or above – and to raise the baseline to 15 years for those on the skilled worker route in occupations below that level. 

Several key construction roles on the Temporary Shortage List are classified at RQF levels 3-5, and therefore fall below RQF level 6. These roles include welding trades, floorers and wall tilers, metal-working production and maintenance fitters, builders and other construction and building trades.

Employers face uncertainty in workforce planning as the proposals would further constrain a sector that relies on migrant workers to meet high demand.

Longer settlement timelines could raise recruitment costs for employers that sponsor migrants, as they would pay higher fees over a longer period. 

It is, however, important to note that these remain proposals and any changes are subject to consultation.

Clara Gautrais is a manager and Christina Azntaridou a trainee solicitor at Fragomen.

Story for CM People? Get in touch via email: [email protected]

Leave a comment

Your email address will not be published. Required fields are marked *

Latest articles in People