The UK Government’s newly released consultation paper, “A Fairer Pathway to Settlement,” represents one of the most consequential shifts in the country’s migration system in more than a decade. The proposal introduces a new “earned settlement” model that significantly lengthens the pathway to permanent residency and places a stronger emphasis on contribution, integration, and compliance.
For the rapidly expanding India–UK business corridor, these changes could shape talent strategies for years to come. Indian companies are now among the UK’s largest overseas investors, and Indian professionals make
up one of the fastest-growing segments of the Skilled Worker and Health & Care routes. As a result, any policy affecting long-term settlement will have a direct impact on both operational and strategic decision-making.
A longer, more conditional
pathway to settlement
Under the proposed model, the standard qualifying period for settlement will double from five years to ten years. For roles below RQF Level 6, including many care, support, and mid-skill technical roles, the qualifying period may increase to 15 years. This marks a major departure from the current system, where settlement is available to most workers after five years of lawful stay.
The new model introduces tougher mandatory requirements:
• English proficiency at B2 level
• A clean criminal record
• Demonstrated annual earnings above the income tax and NIC threshold for 3–5 years
• No NHS, tax, or government debt
• Potential No Recourse to Public Funds (NRPF) condition even after settlement
Importantly, these proposals could apply to all migrants already in the UK who have not yet obtained ILR, meaning many Indian professionals approaching their fifth year may soon be assessed under entirely new standards.
Implications for Indian
businesses in the UK
Indian businesses rely heavily on predictable talent pipelines, especially across IT, healthcare, hospitality, manufacturing, and professional services. The UK’s proposal may influence several dimensions of their operational planning:
1. Talent Attraction and Competitiveness
The extended settlement timeline could make the UK less attractive compared to talent- friendly markets like Canada, Australia, Germany, or the UAE particularly for mid-career professionals who prioritise family stability and long-term certainty.
2. Workforce Stability and Retention
Longer pathways may lead to higher turnover, requiring companies to invest more heavily in retention, upskilling, and incentives to maintain workforce stability.
3. Planning Challenges for Mid-Skill Roles
Sectors that depend on Indian workers in roles below RQF Level 6, especially social care, may face the greatest disruption. The consultation explicitly notes the high volume of
Health & Care visa entrants between 2022–24 and signals a desire to slow long-term settlement for this cohort.
4. Dependants and family decisions
Dependants will no longer automatically settle with the main applicant. Instead, they will have independent qualifying periods, a major shift that may influence relocation decisions for Indian families.
A brighter pathway for
high-skilled Indian talent
Not all outcomes are restrictive. The proposed system gives accelerated settlement to:
• High earners (£50,270+ or £125,140+ for 3 years)
• Innovators and Global Talent visa holders
• Senior contributors to public services
This aligns well with India’s emerging strengths in AI, deeptech, consulting, R&D, fintech, and digital public infrastructure. High-value Indian professionals and founders may find the UK’s new model more rewarding than before.
A defining moment for the
UK–India corridor
As India and the UK deepen economic cooperation, talent mobility remains central to business growth, bilateral investment, and innovation partnerships. The UK’s proposed settlement reforms mark a critical juncture. Whether they ultimately strengthen or constrain the corridor will depend on how actively industry voices participate in this consultation.
Indian businesses, diaspora leaders, and sector bodies should engage proactively to ensure the final framework reflects both Britain’s economic needs and the realities of a modern, interconnected workforce.
The next chapter of UK–India mobility is being shaped now and the stakes have never been higher.