Immigration and Asylum Bill 2026: What It Means for ILR Applicants

What is the Immigration and Asylum Bill 2026?

The Immigration and Asylum Bill 2026 is a piece of proposed primary legislation introduced to the House of Commons by Home Secretary Shabana Mahmood on 30 June 2026. It had its Second Reading — the first major parliamentary debate — on 13 July 2026, which it passed.

The Bill's stated purpose is to make it faster and fairer to process asylum claims, reduce the backlog of appeals, and tighten the rules around human rights-based immigration claims. In practice, it touches four main areas: immigration appeals, the definition and application of Article 8 human rights rights, the asylum protection framework, and modern slavery law.

Despite its name, the Bill's impact is not limited to asylum seekers. Some of its provisions — particularly around appeals and Article 8 — could affect anyone making an immigration decision in the UK, including people on routes to Indefinite Leave to Remain.

The Bill is 82 pages long and was announced in the King's Speech on 13 May 2026. It represents the fifth immigration-related piece of legislation since the current Government took office.

Part 1: The Independent Immigration Appeals Authority (IIAA)

The most structurally significant proposal in the Bill is the creation of a new body called the Independent Immigration Appeals Authority (IIAA), which would replace the current First-tier Tribunal (Immigration and Asylum Chamber) for most immigration and asylum appeals.

The reason the Government gives for this change is capacity. At the time the Bill was introduced, there were more than 150,000 open appeals in the First-tier Tribunal, with applicants waiting an average of 61 weeks — more than a year — for a decision. The system is under severe and documented strain.

Under the Bill, instead of legally qualified immigration judges, IIAA appeals would be decided by adjudicators who are not required to hold legal qualifications. This is one of the most contested proposals in the Bill. The Bar Council has publicly warned against it, and the House of Commons Library has noted that "adjudicators wouldn't have to be legally qualified or have legal experience."

The IIAA would handle:

• Protection and human rights appeals
• Certain immigration bail applications
• Deprivation of citizenship appeals
• Some EEA or EU exit-related appeal rights

If the Bill becomes law, the IIAA is expected to begin hearing cases from late 2027. There would be a period of parallel running alongside the existing tribunal before a full transfer of jurisdiction.

For ILR applicants specifically: if your application is refused and you need to appeal, this is the body that would eventually hear that appeal — replacing the current First-tier Tribunal. The change to non-legally-qualified adjudicators is genuinely significant and is already attracting legal challenge from the Bar Council and immigration law academics.

The Bill also introduces a single, faster appeal process for people facing removal who make what the Home Office considers a "late" claim to be allowed to stay. The aim is to prevent multiple last-minute legal challenges from delaying removal decisions.

Part 2: Article 8 — The Right to Family and Private Life

Article 8 of the European Convention on Human Rights protects the right to private and family life. In UK immigration law, it has historically allowed some people — particularly those with British partners, children, or very long-term residence — to successfully challenge deportation or removal, even when they would not otherwise qualify to remain.

The Bill proposes to tighten the domestic application of Article 8 in immigration cases by writing into primary legislation how judges should interpret and apply these rights. Key changes proposed include:

• "Family" defined more narrowly in statute — limited to immediate family members: spouse, parent, or child under 18 — except in exceptional circumstances.
• Applications relying on Article 8 must be made by a UK-based sponsor rather than by the family member applying from overseas. This removes the ability for people abroad to invoke Article 8 independently in most cases.
• The aim is to reduce the number of successful Article 8 claims in deportation and removal cases, giving less discretion to judges who currently apply the law on a case-by-case basis.

This is one of the most legally controversial aspects of the Bill. The Joint Committee on Human Rights launched a formal legislative scrutiny of these provisions on 15 July 2026. Legal academics have questioned whether removing judicial discretion from Article 8 decisions could itself be incompatible with the Human Rights Act 1998.

The potential impact on ILR applicants: if you are on a route to settlement and have family in the UK, Article 8 has historically been a safety net if your application faced complications. The Bill would narrow — though not eliminate — that protection. The key caveat is that the Bill has not yet passed, and may be amended during the committee stage that begins in September.

There is also a connection to the earned settlement proposals — if retrospective application of the 10-year ILR rule produces a cohort of refused long-term residents, legal experts have noted that Article 8 would likely become the primary route through which their cases are argued on the merits. The Bill's tightening of Article 8 — if enacted — would make those challenges harder. This is covered in detail in our guide on legal challenges to the ILR rule change.

Part 3: Asylum — Core Protection and the "Refugee Tax"

The Bill proposes replacing the current dual framework of refugee status and humanitarian protection with a single "core protection" status. The stated aim is to simplify decision-making, though critics argue it would reduce the security of people granted protection by removing the distinction between the two statuses.

One of the most widely reported provisions is what has been called the "refugee tax". The Bill would allow the Home Office to require some people to repay a portion of the accommodation and financial support they received while waiting for a decision on their asylum claim — if the Home Secretary determines they can afford to do so. The Home Office has indicated this figure could be around £10,000, repayable in monthly instalments through the benefits or tax system. This has attracted significant opposition from refugee organisations.

The Bill also establishes a new community sponsorship scheme for refugees, modelled on the Canadian resettlement programme operational since 1979. This would allow communities, universities, and eventually businesses to sponsor refugees through a safe and legal route. The Government has said the first arrivals under this scheme are expected in autumn 2027.

For those on the protection route to ILR: asylum applicants and those granted protection status before 1 March 2026 are already confirmed to retain the 5-year settlement route under Appendix Settlement Protection. The Bill does not change this.

Part 4: Modern Slavery Reforms

Despite it being titled an immigration bill, a substantial portion of the legislation is dedicated to reforming the Modern Slavery Act 2015. The changes are primarily aimed at what the Government describes as misuse of modern slavery protections to delay removal decisions. They include:

• Tightening the criteria for National Referral Mechanism (NRM) decisions
• New powers for law enforcement to tackle exploitation and gangmasters
• Increased supply-chain transparency requirements on businesses
• New measures to identify and protect children who may be victims of exploitation

These changes are less directly relevant to most ILR applicants on work or family routes, but are significant for anyone involved in modern slavery proceedings or NRM referrals.

Where the Bill stands now — 29 July 2026

The Bill passed Second Reading on 13 July 2026. It must now go through several further stages before it can become law:

• Committee stage — begins 10 September 2026. The Public Bill Committee will scrutinise the Bill line by line. Oral evidence sessions begin on the same day. Written evidence can be submitted to scrutiny@parliament.uk. The Committee is expected to report by 3 November 2026.
• Report stage — MPs debate and vote on amendments proposed during committee. Timing depends on the committee's progress.
• Third Reading — final Commons vote.
• House of Lords stages — the Bill must pass all equivalent stages in the Lords, which often introduces significant amendments.
• Consideration of amendments and Royal Assent — once both Houses agree on the final text.

The Bill is unlikely to receive Royal Assent before 2027. Individual provisions may come into force at different dates after that, as has been the case with previous immigration legislation.

What this Bill does NOT do — the earned settlement question

There has been widespread confusion — including in some press coverage — about whether this Bill introduces the proposed 10-year ILR earned settlement change. It does not.

At Second Reading on 13 July 2026, the Home Secretary was directly asked about this. She said: "Indefinite leave to remain, and the Government's proposals on earned settlement, will be settled policy later this year when the Government respond to the earned settlement consultation — that is not the subject of the Bill."

The position as of 29 July 2026:

• The 5-year ILR route is fully in force for all routes where it currently applies
• No Statement of Changes introducing a 10-year baseline has been laid before Parliament
• The Government's formal response to the earned settlement consultation (which closed 12 February 2026 with over 200,000 responses) has not been published
• Implementation continues to be described as targeting "Autumn 2026" — but no binding date has been confirmed and further delay remains possible
• The House of Lords has formally recommended the Government does not proceed with the retrospective element

If you are approaching 5 years of qualifying residence on a Skilled Worker, family, or BNO visa, you can and should apply under the current rules now — you do not need to wait. Use our ILR Calculator to check your qualifying date and earliest application window.

What ILR applicants should do now

This is a rapidly evolving situation with several moving parts. Here is a plain-English summary of what different groups of people should be doing:

If you are approaching 5 years' qualifying residence

Apply under the current rules as soon as you are eligible. You can apply up to 28 days before your qualifying date. The 5-year route is still valid and open. Every month you delay is a month of unnecessary risk if the rules change. See our guide on applying 28 days early and check your date with the ILR Calculator.

If you have recently had an ILR refusal or are considering an appeal

Your appeal, for now, will be heard by the existing First-tier Tribunal. The IIAA does not exist yet and will not hear cases until late 2027 at the earliest, if the Bill becomes law. However, the proposed changes to Article 8 are worth discussing with an immigration solicitor, particularly if your case involves family life arguments. See our guide on legal challenges to ILR decisions.

If you are on an asylum or protection route

If your protection status was granted before 1 March 2026, your 5-year route to settlement is confirmed under Appendix Settlement Protection. The Bill's changes to core protection status do not retroactively affect this. See our guide on transition protections for full details.

If you are a sponsor or employer

The Bill does not change salary thresholds or sponsor licence requirements. The per-pay-period salary compliance rule introduced on 8 April 2026 remains the most significant operational compliance change for sponsors this year. See our sponsor duties guide.

Timeline of parliamentary events to watch

• 30 June 2026 — Bill introduced (1st Reading)
• 13 July 2026 — Second Reading passed
• 15 July 2026 — Joint Committee on Human Rights launches scrutiny of the Bill
• 10 September 2026 — Public Bill Committee begins line-by-line scrutiny
• 3 November 2026 — Public Bill Committee expected to report
• Late 2026 / early 2027 — Report Stage and Third Reading (indicative)
• 2027 (indicative) — Lords stages and Royal Assent
• Late 2027 (if passed) — IIAA begins hearing cases in parallel with existing tribunal

Summary

The Immigration and Asylum Bill 2026 is a genuinely significant piece of legislation — but its significance is often misread. For most ILR applicants on work or family routes, the most relevant element is not what the Bill contains, but what it does not contain: the 10-year ILR rule, which remains a proposal that will come separately.

The Bill's most direct practical relevance for ILR applicants is the proposed IIAA — which would change how any appeal against an ILR refusal is heard — and the tightening of Article 8, which would narrow the human rights safety net available in complex cases. Both of these are significant. Both are also currently proposals that must pass through several more parliamentary stages before they become law.

The most important action for most people reading this is the same as it has been for months: if you are approaching eligibility for ILR, do not wait. The 5-year route is open, the current rules are in your favour, and the direction of travel is towards a harder system, not an easier one.

Frequently asked questions