New UK settlement rules for migrants raise concerns for business

Shara Pledger, an immigration expert at Pinsent Masons, was commenting after the plans were unveiled by UK home secretary Shabana Mahmood during the Labour Party conference in Liverpool on Monday.

Most significantly, the home secretary said the government would double the qualifying time a person must have lived in the UK to earn permanent status, or “indefinite leave to remain”, from five years to 10 years.

She said where a person satisfies specific criteria, earlier settlement will be possible, but that some applicants may be barred from settlement entirely if they fail to meet the new requirements.

Mahmood also proposed to introduce a series of “new tests” as part of the settlement process for migrants to “restore order and control” at the UK’s borders by “cracking down on illegal working that undercuts British workers” and ensuring “hiring practices” are fair to British workers.

The new criteria include: being in work at the time of application; making National Insurance contributions; learning English to a high standard; never having claimed UK benefits; not having a criminal record; and volunteering or giving back to your local community.

The home secretary did not specify when the change would come into effect, saying it would be introduced “soon”. In a separate statement, the government said a public consultation on the new ‘contribution-based’ settlement model would “be launched by the end of the year”. It is unclear whether these changes will impact people already resident in the UK or whether they will impact those securing visas after an appointed date. There was also no reference to how the community volunteering criteria would be policed.

Pledger said the changes would undeniably make it more challenging for migrants to secure permanent status in the UK, but warned the policy shift with no clear implementation timeframe raised considerable uncertainties for businesses. “This is a concern for business and any organisation that employs migrant workers, as a longer settlement period increases the risk of illegal working arising, and raises the cost where workers are sponsored,” she said.

“The plan is to increase the five-year indefinite leave to remain requirement to 10 years ‘soon’. There will be consultation on that, also ‘soon’. This still doesn't tell us whether current UK residents will be subject to the new settlement period, which really is the concern for many people. A further agonising wait for more information,” she said.

Pledger said the proposals to allow some individuals to settle earlier than 10 years will be welcome, but it is still unclear how this will work in practice. “This could put some existing applicants into a strong position under the new route,” she said, “but it will be interesting to see how dependants are assessed, specifically whether they must meet the settlement criteria on their own or are ‘tethered’ to a main applicant.”

Pledger is concerned it is also unclear how the new tests will apply to highly-skilled workers, who are already subject to stricter criteria including new salary requirements introduced earlier this year. “For those applying in some work routes, a version of these criteria is already a prerequisite to settlement,” said Pledger, “so it is unclear whether a highly skilled worker will see much difference to the rules as they currently exist.”

The home secretary’s comments come just days after the government revealed plans to roll out a new mandatory digital ID card aimed at cutting down illegal working in the UK.

Mahmood made several references throughout her speech to the Labour government’s commitment to maintaining the UK’s status as an “open, tolerant and generous country” to migrants. However, the speech also expressed a need to “question some of the legal constraints that have existed for a generation and more” – a point which Pledger warned could indicate “a tougher approach to future human rights applications.”