In a rare but welcome development, the Home Office has made a significant and positive change to the EU Settlement Scheme (EUSS) that could offer many EU citizens and their family members a clearer, simpler route to settled status. From 16 July 2025, pre-settled status holders will benefit from a new, more generous interpretation of what constitutes a “continuous qualifying period.”
This change, outlined in Statement of Changes HC 836, introduces an alternative rule on absences for those seeking to upgrade from pre-settled to settled status. In essence, it offers a second chance, and for many, a fairer one, to demonstrate five years of continuous residence in the UK, even if their time in the UK has been interrupted.
What Has Changed?
Previously, the continuous residence rules under Appendix EU were complex, and in some cases, harshly rigid. A single absence of more than six months (with limited exceptions) in a 12-month period could reset or even break a person’s residence period. This led to anxiety and confusion, especially for those who spent time abroad during the COVID-19 pandemic. This created a significant risk of exclusion from settled status, even for those with clear and genuine ties to the UK.
From 16 July, the Home Office introduces a far simpler test:
– If a pre-settled status holder can show 30 months of UK residence within the most recent 60 months, they will be considered to have completed a five-year continuous qualifying period — even if there were long gaps in between.
In practical terms, a person could spend one month in the UK and one month outside it alternately for five years—or even take a single continuous absence of up to 30 months—without breaking continuity under this new rule. It is a radical simplification, and a departure from the previous harsher criteria.
How Will the New Rule Work in Practice?
Manual vs. Automated Applications
The new rule applies to both ‘manual’ and ‘automated’ settled status decisions. However, the implementation in automated decisions (which rely on National Insurance records) may take longer to reflect the change. The current automation looks for consistent six-month residence in each 12-month period — a poor fit for the new 30-in-60-month test.
We therefore advise that, if you know you meet the new rule, don’t wait for the automation. Apply manually, especially if your pre-settled status is close to expiring.
Refusals Under the Old Rules
If you were previously refused settled status because of an absence that breached the original rules — and your pre-settled status is still valid — you can REAPPLY under the new rule after 16 July 2025. Most refusals did not result in curtailment of pre-settled status, meaning a second application is still possible.
You Still Need to Wait Five Years
This new rule does not reduce the five-year qualifying period. It only provides a new way to prove continuous residence. You still must have started your residence by 31 December 2020 (or be a joining family member) and must wait until five years have passed before applying.
But It’s Not All Good News
The Lapsing Leave Trap
Perhaps the most arbitrary element remaining is the issue of lapsed leave. Until 21 May 2024, pre-settled status lapsed after two continuous years outside the UK. This has now been extended to five years, but the timing creates some unjust outcomes.
For example:
- Someone who crossed the two-year mark on 20 May 2024 is deemed to have lost their status.
- Someone who did so on 22 May 2024 is not.
These arbitrary cut-offs — particularly when many long absences were due to pandemic-related disruptions — undermine the fairness that the new rule is supposed to achieve.
Curtailment: A Lingering Risk
If someone has spent very little time in the UK since being granted pre-settled status, they may not meet either the old rule or the new rule. The Home Office retains the power to curtail status where someone no longer meets the requirements — and for those who left the UK years ago and haven’t meaningfully returned, this is a real risk.
Even if they technically still hold pre-settled status, they could lose it before they get to the 30-month mark — particularly if they are seen as having “given up” residence in the UK.
A Step in the Right Direction
Overall, this is a highly positive and long overdue change. The Home Office has listened to stakeholders and acted proportionately to fix one of the more punitive elements of the EUSS.
It reflects a recognition that intention and commitment to UK residence matter more than bureaucratic technicalities. It also signals an understanding that the pandemic had an enduring, disproportionate effect on people’s ability to comply with immigration rules.
But gaps remain. Curtailment powers need to be exercised carefully and proportionately. The arbitrary application of the two-year lapse rule prior to 21 May 2024 also needs further reflection — perhaps even redress.
Final Thoughts
If you hold pre-settled status and have faced complications with absences — especially during COVID-19 — this change may well be your second chance. But act proactively. Don’t wait for automation. Gather your evidence now, understand your residence history, and be ready to apply once you meet the new test.
Immigration rules are rarely this lenient. This is a moment to take advantage of a fairer, more realistic approach — and secure your settled status in the UK. If you’re unsure how the new rules affect your circumstances, or if you’ve previously been refused settled status, you may contact us for more tailored advice.
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