Borders, Citizenship and Immigration Bill [HL]

I do not understand the position with regard to the transitional arrangements. I understood the noble Lord to state clearly that anybody who is in the system at the moment will carry on as the system is at the moment and that, after Part 2 has commenced, any new applicants will come in under the earned citizenship arrangements. I am afraid that I do not understand where the transitional arrangements come into this. If they mean something different from "not starting until the commencement of Part 2", I am not sure what the noble Lord is suggesting will happen. Will he amplify that?