ILR vs Settled Status UK

Applying for permanent residence in the United Kingdom commonly results in one of two outcomes: Indefinite Leave to Remain (ILR) under the Immigration Act 1971 or Settled Status under the EU Settlement Scheme (EUSS). Both remove immigration time limits and allow long-term residence, work and study, yet they arise from different legal frameworks and apply to different cohorts.

What this article is about: this guide explains the legal and practical differences between ILR and Settled Status, including who qualifies, how to apply, documentary standards, fees, absence rules, and how each status leads to British citizenship. It reflects current law and policy as at November 2025, including: late EUSS applications requiring reasonable grounds; the Celik lawful residence point for citizenship; fee exemptions for certain protection routes; Withdrawal Agreement proportionality for revocation; and the Home Office transition to digital immigration status for ILR holders by the end of 2025.

Who should read this: EU, EEA and Swiss nationals and their family members with pre-settled or settled routes, non-EU nationals on work or family visas approaching settlement, and advisers comparing evidential and procedural demands across both categories.

Section A – Understanding ILR and Settled Status

Section overview: This section defines ILR and Settled Status, sets out their legal foundations, identifies who each regime covers, and explains why they are not interchangeable even though both remove immigration time limits.

Definitions and purpose

Indefinite Leave to Remain (ILR) is a grant of settlement under the UK’s domestic immigration system that allows a person to live and work in the UK without time restriction. It is typically reached after a qualifying period on a work, family or protection route, or through long residence.

Settled Status is a form of permanent residence granted under the EU Settlement Scheme (EUSS) to protect the residence rights of EU, EEA and Swiss citizens and their eligible family members who were resident in the UK by 31 December 2020. It reflects international obligations arising from the UK–EU Withdrawal Agreement.

Legal foundations

ILR: Granted under the Immigration Act 1971 and the Immigration Rules. Evidence and eligibility are assessed strictly against the relevant Rule-based route (for example Skilled Worker, Appendix FM family routes, protection routes, or long residence).

Settled Status: Granted under Appendix EU to the Immigration Rules, implementing the EU (Withdrawal Agreement) Act 2020. Decisions must be compatible with the Withdrawal Agreement’s protections, including proportionality in refusal or revocation and rights of redress where applicable.

Who each status applies to

• ILR applies across the UK immigration system to non-EU and EU nationals alike who satisfy a qualifying route and residence period (for example five years on Skilled Worker or family routes, or ten years’ lawful residence), subject to suitability and KoLL where required.
• Settled Status applies to EU, EEA and Swiss citizens and eligible family members with UK residence established by 31 December 2020. Late applications are still possible where reasonable grounds for delay are evidenced, but applicants must prove the underlying residence and eligibility under Appendix EU.

Why they are not interchangeable

Although both remove immigration time limits and provide access to work, study and most public services, they arise from distinct regimes with different evidence standards, appeal structures and retention rules. ILR is a domestic status documented historically by a BRP (moving to digital by the end of 2025), whereas Settled Status is a digital record anchored to Withdrawal Agreement protections, including different absence thresholds for lapse.

Section summary: ILR is settlement under domestic law; Settled Status is settlement under the EUSS with Withdrawal Agreement safeguards. Understanding which framework applies is foundational to the correct application route, evidence strategy and maintenance of status.

Section B – Eligibility and Application Processes

Section overview: This section compares who qualifies for ILR and Settled Status, how applications are made, what evidence is required, and how fees and procedural requirements differ.

Eligibility for Indefinite Leave to Remain (ILR)

Eligibility for ILR depends on the applicant’s immigration category, period of lawful residence, and compliance with conditions under the Immigration Rules. Common qualifying routes include:

• Work routes: Skilled Worker, Global Talent, Innovator Founder and Scale-up visas, typically after five years’ continuous residence.
• Family routes: Spouse or Partner visa under Appendix FM, also after five years of lawful residence and proof of a continuing relationship.
• Long residence: Ten years’ continuous lawful residence under paragraph 276B of the Immigration Rules, regardless of visa category.
• Protection and special categories: Refugees, persons with humanitarian protection and those under UK Ancestry provisions.

Applicants must also meet the Knowledge of Language and Life in the UK (KoLL) requirement and demonstrate good character. Certain protection-based ILR applicants are exempt from paying the application fee under the Immigration and Nationality (Fees) Regulations 2018 (as amended).

The ILR fee from 9 April 2025 is £3,029 per applicant. Applications are submitted online via GOV.UK and supported by biometric enrolment, a valid passport or BRP, and documentary evidence of residence and employment.

Eligibility for Settled Status

Settled Status applies to EU, EEA and Swiss citizens and their eligible family members who were resident in the UK by 31 December 2020. Applicants must evidence a five-year continuous qualifying period under the EU Settlement Scheme (EUSS). The application is free of charge.

The Home Office normally verifies residence automatically through HMRC or DWP records. Where data gaps exist, applicants can upload further evidence such as tenancy agreements, payslips or utility bills. Individuals with under five years’ residence can obtain Pre-Settled Status, which later converts to full Settled Status once the five-year threshold is met and residence continues.

Late applications remain permissible under Appendix EU where the applicant demonstrates reasonable grounds for missing the original deadline, for example serious illness or lack of capacity. Each case is assessed individually and refusals attract appeal rights under the Immigration (Citizens’ Rights Appeals) (EU Exit) Regulations 2020.

Procedural Differences

Section summary: ILR requires formal application under the Immigration Rules with a substantial fee and strict documentation. Settled Status is free, largely automated and derives from international obligations, but applicants must prove residence continuity and eligibility under Appendix EU.

Section C – Rights and Conditions of Stay

Section overview: This section explains the rights conferred by ILR and Settled Status, including residence, work, public funds, travel rules, family sponsorship and the circumstances in which either status may be lost or revoked.

Residence and Employment Rights

Both ILR and Settled Status holders may live, work and study in the UK without immigration time limits. They may take any form of employment, establish a business or become self-employed. Employers are required only to verify the holder’s BRP or digital record to confirm right to work.

Both statuses grant access to NHS healthcare, state education, and most welfare benefits subject to habitual residence and eligibility rules. They are exempt from the Immigration Health Surcharge (IHS).

Travel and Absence Rules

While each status offers unrestricted re-entry to the UK, both can lapse after extended absence abroad:

• ILR lapses after more than two consecutive years outside the UK. Re-entry then requires a Returning Resident visa under Part 1 of the Immigration Rules.
• Settled Status lapses after five consecutive years (or four for Swiss nationals) of absence. Once lapsed, the person must qualify again under UK immigration law.

Holders are advised to maintain evidence of residence if travelling frequently to preserve continuity for citizenship purposes.

Access to Public Funds and Services

ILR and Settled Status both permit access to public funds such as Universal Credit, housing assistance and child benefit, subject to the relevant rules. Access for Settled Status holders is aligned with rights protected by the Withdrawal Agreement.

Family Sponsorship Rights

ILR holders may sponsor qualifying family members under Appendix FM, subject to income and accommodation thresholds. Settled Status holders can only sponsor family members covered by the EUSS, meaning the relationship must have existed before 31 December 2020 unless a future family permit route applies.

Revocation and Deportation Risk

Both statuses can be revoked on grounds of deception or criminality. ILR revocation follows the UK Borders Act 2007 and Immigration Rules, while Settled Status revocation is subject to Article 20 of the Withdrawal Agreement, which imposes a proportionality requirement before refusal or deportation.

Appeals for Settled Status refusals or revocations are available under the Immigration (Citizens’ Rights Appeals) (EU Exit) Regulations 2020 where the decision affects Withdrawal Agreement rights.

Proof of Status

ILR is traditionally evidenced by a Biometric Residence Permit (BRP) or endorsement in a passport, though the Home Office is transitioning ILR holders to a digital immigration status by the end of 2025. Settled Status is digital-only and accessed online via the “View and Prove” service.

Summary of Rights

Section summary: Both statuses deliver near-identical rights to reside and work. Key differences lie in legal protection, digital proof, and lapse periods abroad. Settled Status carries EU treaty-based safeguards, while ILR remains a domestic immigration category transitioning to full digital management.

Section D – Pathway to British Citizenship

Section overview: This section outlines how both ILR and Settled Status lead to British citizenship, highlighting the legal requirements, documentation, and lawful residence considerations applied under the British Nationality Act 1981 and Home Office policy.

Naturalisation from ILR

Holders of ILR may apply for citizenship under section 6(1) of the British Nationality Act 1981 after holding ILR for at least 12 months, unless married to a British citizen (in which case the application can be made immediately after obtaining ILR).

Applicants must demonstrate:

• Five years’ continuous lawful residence in the UK (three years if married to a British citizen).
• No absences exceeding 450 days in the qualifying five years or 90 days in the final year before application.
• Compliance with immigration laws and good character standards.
• Passing the Life in the UK Test and meeting English language requirements (KoLL).

ILR must remain valid at the date of application. Where ILR has lapsed due to prolonged absence, the individual must regain settlement before proceeding. Applicants in protection categories are exempt from the ILR fee under the Fees Regulations noted earlier.

Naturalisation from Settled Status

Settled Status holders can also apply for citizenship, provided they meet the same residence and good character criteria. However, unlike ILR, Settled Status is digital-only and not automatically linked to full immigration history. Applicants must therefore supply additional documentation to demonstrate lawful residence across the qualifying period, as confirmed in R (Celik) v SSHD [2023] EWCA Civ 921.

To qualify:

• Five years’ lawful residence in the UK, holding Settled Status for at least 12 months unless married to a British citizen.
• Absences not exceeding the statutory limits.
• English language and Life in the UK Test completed.

Those who obtained Settled Status through a late or exceptional application must ensure their full residence history is well evidenced to demonstrate continuity and lawfulness under the Withdrawal Agreement.

Documentary and Procedural Considerations

Key Legal Distinctions

Both statuses are recognised as forms of permanent residence for citizenship. However, ILR applicants rely solely on domestic law, while Settled Status holders rely on rights preserved by the Withdrawal Agreement. This distinction may affect interpretation of lawful residence or absence rules, particularly where periods of temporary EUSS residence are concerned.

Applicants with either status must ensure continuity of residence, lawful presence, and full documentation throughout the qualifying years. Proper evidence and adherence to absences limits remain decisive for a successful naturalisation outcome.

Section summary: ILR and Settled Status both provide a valid route to citizenship. ILR evidence is typically simpler due to the visa history, while Settled Status applicants must substantiate lawful residence more fully, particularly if residence commenced before 2021 or under late application provisions.

FAQs – ILR vs Settled Status

Can I hold both ILR and Settled Status at the same time?

No. You cannot legally hold both statuses simultaneously. If you are granted Settled Status while holding ILR, the ILR lapses. Likewise, if you later obtain ILR while holding Settled Status, the ILR will replace your Settled Status. Applicants should consider which status better suits their circumstances before applying for another form of settlement.

Can I switch from Settled Status to ILR?

Yes, though it is generally unnecessary. Some EU citizens choose to apply for ILR to hold a physical BRP or to fall under the Immigration Rules rather than the Withdrawal Agreement. Provided they meet a qualifying visa route (for example, Skilled Worker or Spouse), they may apply for ILR while holding Settled Status. The new grant will supersede the EUSS status.

Does Settled Status give me the same rights as ILR?

Yes, both provide indefinite residence rights and access to work, study, and public services. The main differences are procedural: ILR is governed by domestic law, whereas Settled Status arises under the Withdrawal Agreement, which affords additional proportionality safeguards before revocation or deportation.

How long can I stay outside the UK without losing my status?

ILR lapses after two consecutive years outside the UK, while Settled Status lapses after five consecutive years (four for Swiss nationals). After losing status, you would need to requalify under a relevant visa category or as a returning resident.

Which status makes applying for British citizenship easier?

Neither offers an easier route legally, but the process of evidencing lawful residence can differ. ILR applicants often rely on visa records already held by the Home Office, whereas Settled Status applicants may need to provide additional documentation to prove continuous lawful residence across the qualifying period.

Do ILR and Settled Status holders pay the Immigration Health Surcharge?

No. Once you hold either ILR or Settled Status, you are exempt from paying the Immigration Health Surcharge (IHS). Access to NHS healthcare is available on the same basis as British citizens.

Can Settled Status be refused or revoked?

Yes. The Home Office may refuse or revoke Settled Status if it was obtained by deception, if the holder poses a serious threat to public policy or security, or if they no longer meet Withdrawal Agreement requirements. Any such decision must observe the Article 20 proportionality test, and a right of appeal exists under the Immigration (Citizens’ Rights Appeals) (EU Exit) Regulations 2020.

Section summary: In practical effect, ILR and Settled Status grant the same rights. Differences arise mainly in their legal bases, documentation, and retention rules. Understanding these nuances helps ensure compliance, preserve residence, and prepare accurately for citizenship.

Conclusion

Both Indefinite Leave to Remain (ILR) and Settled Status provide a permanent right to live in the United Kingdom free from immigration time limits. Each grants access to employment, study, healthcare and public funds, but they originate from distinct legal frameworks and are subject to separate evidential and procedural rules.

ILR is a domestic immigration status under the Immigration Act 1971 and associated Immigration Rules. It is typically reached after a defined period of lawful residence and remains central to the UK’s immigration system. Settled Status, by contrast, derives from the EU Settlement Scheme established after Brexit to safeguard the residence rights of EU, EEA and Swiss nationals. It exists within the framework of the EU (Withdrawal Agreement) Act 2020 and Appendix EU to the Immigration Rules.

While the rights conferred are near identical, differences arise in how each status is documented and retained. ILR is transitioning to a digital format by the end of 2025, whereas Settled Status has been digital since inception. The most significant divergence lies in how long each status survives absence from the UK—two years for ILR and five for Settled Status.

For citizenship, both are recognised equally under the British Nationality Act 1981, though Settled Status applicants must show full evidence of lawful residence as confirmed in Celik. ILR holders may find evidential requirements simpler due to established visa records.

Conclusion summary: ILR is the domestic route to permanent residence; Settled Status is an EU-derived protection. Both secure long-term residence and eligibility for citizenship, but understanding their legal bases and retention rules ensures individuals maintain their rights lawfully and avoid unintentional loss of status.

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