The EU Settlement Scheme: the effect on millions

From the 2016 Brexit referendum through to the 2019 general election, the United Kingdom’s (UK) departure from the European Union (EU) dominated British politics. This process, known as Brexit, began with the EU referendum on 23 June 2016, in which the people of the United Kingdom voted to leave the European Union. However, it took four years for the UK to leave the EU, due to several political, legal, and logistical challenges. The UK formally left the EU on 31 January 2020, which was followed by a transition period that ended on 31 December 2020.[1] The UK chose not to extend the transition period beyond that date, which was intended to maintain the legal status quo while the UK and EU negotiated an agreement on their future relationship.[2]

Figure 1 – Process of EU Settlement Scheme

 The Source: The UK Government

To address the immigration status of EU citizens in the UK after Brexit, the government decided to introduce a UK immigration programme, the EU Settlement Scheme (EUSS). It was designed to allow EU, European Economic Area (EEA), and Swiss citizens to continue living and working in the UK. To be eligible for the scheme, the applicant must have been a resident in the UK by 31 December 2020, the end of the Brexit transition. This scheme aimed to protect the rights of EU citizens and their families who were already living in the UK before Brexit, ensuring that they could continue to reside in the country. The EUSS grants successful applicants either settled or pre-settled status, where both statuses recognise their right to live and work in the UK to access NHS care and other benefits. Settled status was granted for those with at least five years of residency, whereas pre-settled status was granted for those with less than five years.[3]

Figure 2 – Total and cumulative number of applications received

Source: The UK Government

As of June 2024, there have been 7.9 million EUSS applications made since the scheme was launched, the applications were submitted by 6.3 million individuals, as some of the applicants made multiple applications.[4] The large volume of applications highlights how important this scheme has been for EU nationals in the UK. The fact that some people had to make multiple applications suggests that there may have been some discrepancy in the process. While 3.8 million received the settled status, 1.9 million are left with a pre-settled status, who may still face uncertainty in the long run.

Despite its intentions, there have been concerns regarding the EUSS, such as wrongly refused applications and administrative errors, and most pre-settled status holders remain unaware that they must reapply for settled status before their temporary status expires. People who are unaware of the reapplication may risk losing their legal residency. Also, since the EU referendum, many non-British citizens have reported to feeling less safe, due to racial and ethnic discrimination, with hate crime rates increasing. This can be due to the economic and social instability after the referendum, with some people blaming the migrants for job shortages and housing issues. Brexit also often framed immigrants as a “problem”, leading to increased hostility towards foreign nationals.

Figure 3 – EU Settlement Scheme: applications submitted after 30 June 2021

Source: The UK Government

One major issue is that applications are regularly wrongly refused, due to a combination of administrative failures, lack of clarity in decision-making, and systemic barriers affecting vulnerable groups. There is also a concern over the quality of advice provided and decisions made under the scheme, with cases revealing that the wrong status has been granted. Some applicants were wrongly granted pre-settled status despite having lived in the UK for over five years, which should have made them eligible for the permanent settled status. Apart from a lack of clear and consistent criteria, which led to inconsistent decisions, there was also a steady flow of delayed applications, which may have overwhelmed the system, resulting in potentially rushed or incorrect decisions. It is also not clear whether pre-settled holders fully understand that their temporality of their status which necessitates reapplication prior to expiration. Thus, much has to be done by the UK government in terms of informing pre-settled status holders that their rights are only temporarily secured. Additionally, the administrative review scheme was abolished, which made it harder to correct errors. Certain refusal decisions had no right to appeal, and the appeals to the Immigration Tribunal were costly and complex. Paul Bowen KC, the Chair of the report’s working group, believed that this issue would be difficult, if not impossible, to remedy.[5] Not everyone knew about the requirement of Settled Status, and by the time they knew about it, the initial deadline had passed (30 June 2021).[6] This was shown by the 2 million applications received from 1 July 2021 to 30 June 2024, with around 640,000 applications being late applications. Those unaware of the need to apply would have been at risk of automatically losing their legal status after 30 June 2021. Vulnerable groups are likely to miss out, like elderly, as they may lack awareness about the need to apply. Furthermore, there are groups who may have limited computer literacy, making online applications difficult, or may have language barriers or low literacy levels.

The EUSS may have created job insecurity and legal barriers for workers.[7] This is because, if they have not applied for the scheme, or if their application is not approved in time, they may not be able to legally prove their right to work in the UK. This can lead to employers potentially terminating their employment due to concerns over their immigration status. This is particularly relevant for those with ‘pre-settled status’ who have a time limit before needing to apply for settled status. Additionally, individuals who applied and were granted a ‘pre-settled’ status may think that that is sufficient for them to work in the UK, neglecting the need to apply for a settled status. If they fail to do so, their right to work in the UK could expire, potentially leading to job loss. Since employers are legally obligated to check the immigration status of their employees, they may be reluctant to hire or retain workers whose status is unclear, leading to job insecurity for the individuals. Usually, a decision on an EUSS application takes between 6 to 9 weeks, if no further information is required. A delay may cause a temporary disruption to their employment when the individuals are waiting for a decision. Those who do not apply by the relevant deadline may make them vulnerable to deportation.

Another significant concern of the scheme is the possibility of future discrimination.[8] There have been surveys that provide evidence that discrimination is already happening. Different respondents have shared their discriminatory experiences in the UK, like how ‘the mortgage advisor kept referring to my status as if it was a deadly disease: ‘because of your situation’, ‘due to your special case’’ or how ‘he reminded me that as an EU citizen I had no longer rights to live in the UK’. [9]Data has also revealed how the mental health of many respondents has deteriorated since the EU referendum, like how the uncertainty caused by Brexit and the anxiety of applying to stay. Some citizens also expressed their feelings on how their ‘close European friends’ had to ‘leave because they feel unwelcome’.

However, the EUSS has also had several positive effects, including the security for EU citizens and family reunification.[10] The EUSS provides EU, EEA, and Swiss citizens living in the UK with legal status, allowing them to continue to live, work and access healthcare and social benefits. It also allows family members of eligible EU citizens to apply, keeping families together and fostering social stability. However, many EU citizens still face uncertainty, especially those with pre-settled status whose residency is subject to reapplication. While family reunification is a positive aspect, it does not replace the years of uncertainty. Ultimately, what EU citizens desire most is not merely the right to stay, but the feeling of being truly valued members of the society. The EUSS is a step in the right direction, but to make further progress, the focus should now be on fostering societal acceptance and strengthening protection against discrimination.

The EUSS has had a big impact on millions, especially the EU, EEA and Swiss citizens living in the UK, as it offers them a pathway to secure their rights post-Brexit. While the scheme has granted status to millions, there were ongoing issues with it, including administrative errors, delayed application, and potentially a lack of clear communication for vulnerable groups. Many individuals who faced wrongful refusals, leading to the risk of residency and jobs, may have suffered from mental illnesses, like anxiety. Moreover, the requirement for pre-settled status holders to reapply has created further uncertainty, with some being unaware that their rights are only temporary. But, on the positive side, the EUSS has promoted security for EU citizens and allowed for family reunification.

[1] Encyclopaedia Britannica, ‘Brexit’ <https://www.britannica.com/topic/Brexit> accessed February 2025.

[2] Simmons & Simmons, ‘Brexit: Regulatory and Legislative’ <https://www.simmons-simmons.com/en/features/brexit/ckcbn0l3wl73z0a796j17rid3/brexit-regulatory-and-legislative/ck7gftn8p12ry0a78e5qxsx86/brexit-brexit-the-transition-period> accessed February 2025.

[3] UK Government, ‘Settled Status for EU Citizens and Their Families’ <https://www.gov.uk/settled-status-eu-citizens-families> accessed February 2025.

[4] UK Government, ‘Immigration System Statistics: Year Ending June 2024’ <https://www.gov.uk/government/statistics/immigration-system-statistics-year-ending-june-2024/how-many-people-have-been-granted-settlement-via-the-eu-settlement-scheme#:~:text=7.9%20million%20applications%20had%20been,%2C%20and%20234%2C121%20invalid%20applications> accessed February 2025.

[5] Justice, ‘Ongoing Problems with EU Settlement Scheme Affecting Millions’ <https://justice.org.uk/ongoing-problems-with-eu-settlement-scheme-affecting-millions/#:~:text=Ongoing%20problems%20with%20the%20scheme,benefits%2C%20a%20new%20report%20finds> accessed February 2025.

[6] LSE Blogs, ‘There Are Cracks in the EU Settlement Scheme: Who Will Fall Through Them?’ <https://blogs.lse.ac.uk/brexit/2020/05/06/there-are-cracks-in-the-eu-settlement-scheme-who-will-fall-through-them/> accessed February 2025.

[7] CEEMR, ‘Imagining Impossible Fears: Deportation and Barriers to Obtaining EU Settled Status’ <http://ceemr.uw.edu.pl/vol-10-no-1-2021/articles/imagining-impossible-fears-deportation-and-barriers-obtaining-eu-settled> accessed February 2025.

[8] UK Government, ‘Formal Response to the EU Settlement Scheme’ <https://assets.publishing.service.gov.uk/media/61df0399e90e07037c8d604f/Formal_response_EU_Settlement_Scheme_3_edits_re_implementation_.pdf> accessed February 2025.

[9] The3Million, ‘Experiences and Impact of the EU Settlement Scheme’ <https://the3million.org.uk/sites/default/files/documents/t3m-NorthumbriaUniversity-report-ExperiencesImpactEUSS-20Jan2020.pdf> accessed February 2025.

[10] UK Government, ‘EU Settlement Scheme Caseworker Guidance’ <https://www.gov.uk/government/publications/eu-settlement-scheme-caseworker-guidance/eu-settlement-scheme-eu-other-eea-and-swiss-citizens-and-their-family-members-accessible> accessed February 2025.