UK Confirms 10-Year Settlement Rule! Unveils “Europe’s Strictest” New Immigration System Draft! Rail Fares Frozen for the First Time in 30 Years! Inflation Falls to a Four-Month Low
- TBA
- Nov 23
- 5 min read
Biggest overhaul of legal immigration model in 50 years announced
Last week, the UK House of Commons released a draft reform of the permanent residency system titled “Earned Settlement”, aimed at restoring “order and control” to the immigration system. The new system is built around four key pillars—conduct, integration, contribution, and length of residence—and will significantly raise the threshold for obtaining Indefinite Leave to Remain (ILR).
According to the draft, the minimum residence requirement for legal migrants to apply for permanent settlement will be raised from the current 5 years to 10 years, applying to nearly two million migrants who have arrived in the UK since 2021. Those who already hold ILR will not be affected.
Although the system is becoming stricter, the Home Office emphasized that it will offer “fast-track settlement routes”to groups that make major contributions to the economy and public services, including:
NHS doctors and nurses: still eligible to apply for ILR after completing 5 years on a work visa;
High-income earners: those earning over £125,000 annually can obtain ILR after 3 years; those earning over £50,000 can apply after 5 years; volunteer work and English proficiency will serve as additional bonus factors that may further shorten the timeline;
Innovation and entrepreneurship talent (e.g., Global Talent and Innovator Founder visa holders): will continue to have access to a 3-year ILR route;
Immediate family members of British citizens and certain groups such as BN(O) holders will continue to follow the 5-year route.
For migrants in low-paid roles, such as the roughly 616,000 people (including dependants) who entered between 2022–2024 on Health and Care Worker visas, the wait for ILR will extend to 15 years. This visa category, criticized for abuse, was closed earlier this year. For migrants who rely heavily on welfare benefits, the ILR requirement will be extended to 20 years—four times the current standard and the longest in Europe.
Those who entered illegally or significantly overstayed their visas will need to wait 30 years before being eligible to apply for ILR, drastically reducing their chances of securing long-term status in the UK.
Meanwhile, the new system also proposes that ILR will no longer grant eligibility for welfare benefits—benefits can only be accessed after naturalisation. This means ILR will no longer automatically entitle holders to claim social welfare or apply for social housing; they must first obtain British citizenship. Combined with plans to introduce penalties for abuses of the immigration system, the new framework is set to become one of the strictest and most selective permanent residency systems in Europe.
The Home Secretary stressed: “Immigration is vital to Britain’s past and future, but unprecedented levels of migration in recent years have impacted community safety and the capacity of public services. Settlement is not a right—it is a privilege that must be earned through contribution and integration.”
The system is currently in the pre-legislative consultation stage. Public consultation will close on 12 February 2026, and phased implementation is planned to begin in the spring of 2026.
Data published by the Labour Party indicates that even though net migration in 2024 has nearly halved, 1.6 million migrants are still expected to meet the criteria for ILR by 2030. Among legal work migrants, holders of Health and Care Worker visas make up the largest proportion, but because they are considered “low-skill, low-income, and low-tax-contributing,” the government views them as placing substantial pressure on public finances.
Rail fares to be frozen for first time in 30 years
The UK government has announced that it will freeze rail fares in England and for rail services operating within England from this year until March 2027, marking the first comprehensive freeze on regulated rail fares in 30 years. The measure will bring substantial savings to millions of rail passengers, including those using season tickets as well as peak and off-peak return tickets between major cities.
Commuters who travel three days a week using flexi-season tickets will see significant reductions in cost:
Milton Keynes — London: £315 saved per year
Woking — London: £173 saved per year
Bradford — Leeds: £57 saved per year
This policy is part of the Labour government’s plan to build a publicly owned Great British Railways. Other reforms will include:
Introducing a metro-style tap-in, tap-out payment system
Expanding the use of electronic tickets
Investing in ultra-fast Wi-Fi services
Chancellor Rachel Reeves stated that the rail fare freeze “will ease financial pressure on households and make commuting, studying, or visiting friends and family easier.” Railway unions and passenger groups have also widely praised the move, saying it will improve affordability, encourage public transport use, and support more environmentally sustainable travel.
UK inflation rate hits lowest level in four months
According to the latest data from the Office for National Statistics (ONS), annual inflation fell to 3.6% in the year to October—the lowest level in four months—boosted by slower increases in household energy costs and a drop in hotel prices. However, after falling in September, food prices rose again.
The release of this latest inflation report comes less than a week before the highly anticipated Autumn Budget. Following the publication of the data, Chancellor Rachel Reeves stated: “Inflation and the cost of living are still placing a heavy burden on families across the country. I will take further action to bring prices down.” She emphasized that easing cost-of-living pressures is one of the main goals of the upcoming budget. The budget is expected to include tax rises and spending cuts to strengthen the government’s finances.
Although overall inflation fell in October, food and non-alcoholic drink prices remained the biggest upward pressure on the index. Annual food inflation rose from 4.5% in September to 4.9% in October, with bread, meat, fish, vegetables, chocolate, and confectionery all becoming more expensive, while fruit prices dipped slightly.
A decline in headline inflation means prices are still rising, but at a slower pace. Markets are hopeful that inflation has peaked, potentially paving the way for future interest-rate cuts. Even so, inflation remains above the Bank of England’s 2% target, and the next rate decision on 18 December will likely focus on the impact of prolonged higher rates on the economy.
Because inflation had hovered at a “sticky” 3.8% for several months, the Bank of England kept interest rates unchanged at 4% at its November meeting to prevent prices from accelerating too quickly.
However, the medium- and long-term outlook for prices and inflation will depend on various factors, including energy and commodity costs affected by global conditions and climate change.
Policies announced in the upcoming Autumn Budget may also influence inflation. There has been speculation that the Chancellor may reduce energy taxes to help contain price growth; spending cuts or tax increases could also have a deflationary effect.
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