Mon 02 Nov 2026

Earned settlement: what care businesses need to know

The Home Office has announced its approach to earned settlement, also known as indefinite leave to remain (ILR). The reforms offer protection for some existing care workers, but others may face longer routes to settlement and additional visa costs. Implementation is planned during 2027, but detailed Immigration Rules and guidance are still awaited, as well as the official timeline.

What has been announced?

  • Protection for existing care workers. A five-year settlement route is intended to remain available to eligible workers who joined the care route before the May 2025 cut-off, complied with their visa conditions and earned at least ÂŁ25,000 a year in the sector. The precise eligibility and evidence requirements will be set out in the Rules when they are published.

  • A further care visa. Where a worker has been employed by a company which has lost its sponsor licence, they will be able to apply for a new care visa. This will not be tied to a specific employer. This means there will be a pool of experienced applicants for vacancies who do not require sponsorship.

  • Longer routes for other workers. Those outside the transitional protection would generally fall within the new ten-year baseline, unless another reduction applies. This could mean additional visa extensions and sponsorship costs for care businesses.

  • Different treatment by role. Certain health roles, including eligible nursing roles, may qualify for a shorter route under separate provisions. However, not all care roles will be covered. For example, care home managers are more likely to be on a ten-year route to settlement.

What this means for your business: Unfortunately, the changes will mean staff members have different paths to indefinite leave depending on their visa history. Some employees may retain a five-year route, while others may need longer-term visa support, which will increase business costs.

Three steps to take now

  • Map your workforce. Review each worker’s immigration route, relevant dates, salary, employment history and permission expiry date. Identify who may need support beyond five years and factor potential extensions into workforce budgets.

  • Communicate clearly. Explain what has been announced and what remains unconfirmed. Avoid promising settlement dates; encourage staff to obtain advice on their individual circumstances.

  • Check compliance. Review right-to-work checks, sponsor records and reporting processes. Keep existing obligations under review while awaiting the new Rules and guidance. The Home Office regularly audits and inspects care businesses, and licence revocations are at an all-time high.

How we can help

Our immigration team advises care businesses on workforce visa planning, right-to-work checks and sponsor compliance. Please get in touch to discuss the implications for your organisation.

This article provides general information, not advice on any individual’s eligibility. The final Rules and guidance should be checked before decisions are made.

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