A.C.T. London | May 2025 Residency Advisory

A.C.T. London | May 2025 Residency Advisory

Reshaping Settlement: Anticipating the UK’s Changing Immigration Landscape

In recent weeks, immigration has returned decisively to the forefront of the UK political agenda. Both the current Government and the Opposition have signalled an intention to recalibrate the UK’s long-term residency framework—moves that, although not yet enacted, could carry significant implications for internationally mobile individuals, their families, and the organisations that support them.

At A.C.T. London, we consider it essential to anticipate—not merely react to—policy developments. While the precise legislative outcome remains subject to electoral timing and parliamentary scrutiny, we believe it prudent for individuals and employers alike to begin planning now.

Proposed Reform: A Shift in the Threshold for Permanence

Among the most consequential proposals currently under consideration is a suggested extension of the minimum residence period required to obtain Indefinite Leave to Remain (ILR). Under a future Labour-led administration, the qualifying period may increase to 10 years, doubling the current five year pathway available to most skilled workers and family visa holders.

Although this remains a policy statement rather than binding law, it reflects a broader consensus in Westminster towards tightening settlement routes and reassessing the UK's long-term immigration strategy.

This proposal coincides with recent reforms already announced by the current Government in early May 2025. These include:

• The phased withdrawal of the Health and Care Worker route, with new expectations placed on domestic recruitment and training in the care sector.

  
  

• Reductions to the Graduate visa scheme, shortening post-study rights and introducing institutional financial disincentives.

  
  

• An overhaul of the Skilled Worker framework, including the abolition of the Immigration Salary List and a significant increase in the Immigration Skills Charge.

  
  

• Stricter English language testing across a broader range of visa categories, including dependent family members.

Together, these measures represent a clear trajectory: a migration system increasingly aligned with long-term integration, labour market sustainability, and fiscal contribution.

Our Analysis: Implications for Individuals and Employers

In practice, the tightening of eligibility thresholds—particularly around time spent in the UK and the flexibility to switch between routes—could disrupt current assumptions around residency planning.

Individuals who have already commenced a route to settlement may find that the window for applying under current rules narrows quickly. Those contemplating changes in visa type, or considering time outside the UK for personal or professional reasons, may find their long-term options curtailed under future legislation.

Similarly, employers who rely on cross-border mobility for key roles, or who have structured internal progression around the five-year ILR framework, may need to revisit workforce strategies.

Recommendations

In light of this evolving context, we suggest the following steps for those affected or potentially affected:

• Early Eligibility Review: If you are on course to qualify for ILR within the current five-year rule, consider initiating your application sooner rather than later.

  
  

• Travel History Documentation: Ensure detailed records of absences from the UK are maintained, as time outside the UK may attract greater scrutiny.

  
  

• Route Planning Before Switching: If you are considering switching visa categories, it is essential to understand how that decision may impact your long-term settlement rights.

  
  

• Business Impact Assessment: Employers should undertake a focused review of immigration policies, succession planning, and associated compliance costs under the new regulatory trajectory.

How We Support You

At A.C.T. London, we work with internationally active individuals and organisations to structure long term mobility solutions that are both compliant and commercially aligned.

Our services include:

• Bespoke ILR and settlement eligibility assessments

  
  

• Strategic advice on residency and citizenship pathways across UK and EU jurisdictions

  
  

• Policy impact reviews for HR teams and legal departments

  
  

• Fast-tracked preparation and submission of ILR, naturalisation, and family visa applications

If you are currently resident in the UK or planning to relocate, and would like to explore the implications of these proposed reforms in more detail, please do not hesitate to contact our team.