ILR applicants
look out for new
income requirements!

9 July 2015

Any Tier 2 UK visa holder wishing to apply for Indefinite Leave to Remain (ILR) in the UK will have to earn upwards of £35,000 in order to do so from 6 April 2016.

This new income threshold is to be introduced next year and will subsequently affect many Tier 2 visa holders wishing to apply for ILR following their permitted five-year stay in the UK.

Who will be affected?

The change is designed to make it more difficult for many people to qualify for UK settlement or permanent residency, as it is also known, and will be relevant for all ILR applications made under the Tier 2 (General), Tier 2 (Minister of Religion) and Tier 2 (sportsperson) visa categories.

Those who do not meet the new income requirement of £35,000 after their permitted five years of employment here in the UK must find some other way to extend their stay in the UK. One option is to extend their current Tier 2 visa by one year and then to leave after a total of six years employment as a Tier 2 skilled worker.

Why has the minimum income requirement been increased?

This change in the minimum income requirement for ILR applications is designed to cut the number of non-EU nationals and their dependants being granted ILR in the UK from around 60,000 per year to 20,000 per year. It comes as part of the government’s efforts to reduce the country’s net migration figure to below 100,000, a task at which they have failed over the past few years.

Who will be exempt from the new income requirement?

The new income requirement of £35,000 will not be applicable to any ILR applicants who are in occupations found on the shortage occupation list, nor will it apply to scientists and researchers in PhD level occupations. This is because researchers and academics command pay thresholds which are not comparable with highly skilled migrants working in other UK sectors.

Criticism of the new income threshold for ILR applicants

According to sources, the news of the increased income threshold has been received with much criticism, particularly from within the health and educations sectors.

Many industry leaders have questioned the wisdom behind restricting of highly skilled migrant staff from permanently residing here and have voiced their alarm at the prospect of a subsequent skills shortage.

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