Permanent settlement rose sharply in the year to June 2026, while asylum claims, hotel use and the initial decision backlog all fell.
A total of 140,122 settlement and citizenship grants were recorded during the quarter—equal to approximately 1.07 grants per minute according to the latest Home Office figures. Over the full year, 199,628 people received settlement, commonly known as Indefinite Leave to Remain. This was 24 per cent higher than the previous year and the largest annual number since 2011.
A further 245,520 people became British citizens. Although this was four per cent below the previous year’s record, it remained historically high.
The figures arrive as the government prepares major changes to the UK settlement system, including a proposed increase in the standard qualifying period from five to ten years.
UK immigration figures at a glance
| Category | Latest figure | Annual change |
| Settlement grants | 199,628 | Up 24% |
| British citizenship grants | 245,520 | Down 4% |
| Settlement after a work visa | 80,409 | Up 36% |
| Settlement through the BN(O) route | 38,373 | Sharp rise from 587 |
| Asylum claims | Around 86,000 | Down 21% |
| People awaiting an initial asylum decision | 40,168 | Down 56% |
| Asylum seekers in hotels | 16,021 | Down 50% |
| Immigration returns | Around 41,000 | Up 8% |
Workers Drive Rise in UK Settlement Grants
Foreign workers formed the largest group receiving settlement during the year. This means some 80,409 people whose most recent permission was connected to a work route gained permanent status—a rise of 36 per cent.
Indian nationals remained the largest nationality group, with 35,384 settlement grants, an increase of 51 per cent. The Home Office said this reflected the growing number of Indian workers who had completed the required period of residence in Britain.
These figures should not be confused with the number of people newly entering the UK. Settlement statistics mainly reflect people who arrived several years earlier and have now completed the residence period required under their immigration route.
Major Increase Among Hong Kong BN(O) Visa Holders
Another important reason for the increase was the British National (Overseas) route for people from Hong Kong.
The number of BN(O) visa holders receiving settlement rose from only 587 in the previous year to 38,373. The route opened in January 2021, meaning its earliest participants have now completed the five-year period normally required for permanent residence.
Hong Kong nationals became the second-largest nationality group receiving settlement, with 22,593 grants. Settlement among Chinese nationals also rose strongly, from 5,570 to 21,300.
By comparison, settlement grants to refugees and people holding other forms of protection fell by 40 per cent to 22,799.
What Indefinite Leave to Remain Means
Indefinite Leave to Remain allows a person to live, work and study in the UK without an immigration time limit. It is not the same as British citizenship.
A person with ILR normally remains a foreign national and may lose their status after spending a long period outside the UK. Citizenship provides additional rights, including a British passport and the right to vote in all UK elections.
In most cases, a person can apply for British citizenship after holding ILR for at least 12 months, provided all other requirements are met.
The quarterly “one every minute” calculation combines settlement and citizenship grants. It should therefore not be interpreted as one newly arrived migrant being given permanent status every minute.
Government Plans Tougher UK Settlement Rules
Home Secretary Shabana Mahmood is preparing an “earned settlement” system that would increase the normal qualifying period for ILR from five to ten years.
Under the proposals, migrants could face shorter or longer waiting periods depending on their work, earnings, conduct, integration and contribution to the country. Workers in jobs classified below graduate level—including many care workers—could start from a 15-year baseline. Refugees could face a 20-year route unless they qualify for reductions through work or study.
The proposals have faced opposition from some Labour MPs, unions and care-sector organisations. They have called for protection for people who entered the UK under existing five-year routes.
One of the largest unanswered questions is whether the longer waiting periods will apply to migrants already living in Britain. Transitional arrangements and possible exemptions have been discussed, but the final design has not yet been confirmed.
Asylum Hotel Numbers Fall by Half
The Home Office figures also revealed a major reduction in the use of hotels for asylum seekers.
There were 16,021 supported asylum seekers living in hotels at the end of June 2026, compared with 32,041 one year earlier. This was the lowest number since hotel figures began being published in 2022 and far below the September 2023 peak of 56,018.
However, more people were being housed elsewhere. Some 69,038 asylum seekers were living in houses, flats, bedsits and other dispersed accommodation—a four per cent annual increase.
The North West had the largest number, with 16,349 supported asylum seekers living in private dispersed properties. The government has faced calls to distribute accommodation more evenly so that poorer areas do not carry a disproportionate share.
Asylum Claims and Backlog Decline
Around 86,000 people claimed asylum in the year to June 2026, down 21 per cent. Just over half had entered through routes classed as illegal, including small boats, while 41 per cent had previously held a visa or another form of permission.
The number of people waiting for an initial asylum decision fell by 56 per cent to approximately 40,000. Hotel use fell alongside the backlog, although pressure has increasingly moved into the appeals system and other forms of accommodation.
Returns also increased. Around 41,000 people left through enforced or voluntary return routes, eight per cent more than a year earlier. This included approximately 6,000 foreign national offenders, a rise of 12 per cent.
A Changing Moment for UK Immigration
The new figures present two different pictures of Britain’s immigration system. On one side, settlement has reached its highest level in 16 years as earlier groups of workers and BN(O) migrants become eligible to remain permanently. On the other, asylum claims, hotel use and the initial decision backlog have all fallen.
For migrants already approaching settlement, the next government announcement will be crucial. The final rules will determine whether they can complete their current five-year route or must wait considerably longer under the proposed earned settlement system.