Indefinite Leave to Remain vs Settled Status

Indefinite Leave to Remain (ILR) and Settled Status both provide long-term residence in the UK without immigration time limits, but they arise from different legal frameworks and are administered differently. ILR is granted under the Immigration Rules pursuant to the Immigration Act 1971 across multiple routes (for example Skilled Worker, Partner, Long Residence). Settled Status is granted under Appendix EU to protect the residence rights of EEA/Swiss citizens and eligible family members resident in the UK by 31 December 2020. Understanding how these regimes differ—who qualifies, how rights are proved and maintained, and how each leads to British citizenship—is critical to planning lawful residence and naturalisation.

In practice, both statuses permit work, study and access to NHS care. However, proof and preservation of status differ. ILR is increasingly evidenced digitally (eVisa) following Home Office digitalisation, while many holders still use a Biometric Residence Permit (BRP) until full rollout. Settled Status is digital only and accessed via the GOV.UK online service. Absences also differ: ILR can lapse after two continuous years outside the UK; Settled Status generally lapses after five years’ absence (four for Swiss citizens). Access to public funds in either case depends on underlying UK eligibility rules, including habitual residence tests where applicable.

The EU Settlement Scheme (EUSS) remains open in specific circumstances for qualifying family members of existing Settled or Pre-Settled Status holders, subject to meeting Appendix EU requirements. Pre-Settled Status is temporary and must be converted to Settled Status once five years’ continuous residence is met, before an application for British citizenship can be made.

What this article is about: This guide sets out (A) the legal basis and eligibility for ILR and Settled Status, (B) the rights, restrictions and lapse rules, (C) how each status leads to British citizenship, and (D) key differences and frequent misconceptions. It includes practical points on proof of status (BRP vs eVisa vs digital EUSS record), treatment of absences, benefit eligibility considerations, and what to do if status is lost (e.g., returning resident applications for lapsed ILR). The aim is a precise, practitioner-level comparison aligned with current UK law and Home Office policy.

Section A – Legal Basis and Eligibility

ILR: Legal Basis

Indefinite Leave to Remain (ILR) is permission to stay in the UK without time limit, granted under the Immigration Rules made pursuant to the Immigration Act 1971. It applies across a range of qualifying routes including Skilled Worker, Partner, Long Residence, UK Ancestry and certain protection or discretionary categories. The Home Office is progressively replacing physical Biometric Residence Permits (BRPs) with digital eVisas as part of its immigration digitalisation programme.

ILR: Eligibility Criteria

Most ILR routes require five years of continuous lawful residence in an eligible category, although certain categories, such as Innovator Founder or Global Talent, may allow accelerated settlement. Applicants must pass the Life in the UK Test, meet the English language requirement, and satisfy suitability and good character checks. Excessive absences can break the continuity of residence and delay eligibility for ILR.

Settled Status under Appendix EU: Legal Basis

Settled Status is a specific form of indefinite permission granted under Appendix EU of the Immigration Rules. It was created to implement the UK’s Withdrawal Agreement with the EU, protecting the residence rights of EEA and Swiss citizens and their eligible family members who were living in the UK by 31 December 2020. Status is held digitally and managed through the GOV.UK online service; no physical document is issued.

Settled Status: Eligibility Pathways

Individuals with at least five years’ continuous qualifying residence by the date of decision are eligible for Settled Status. Those who had not yet completed five years were granted Pre-Settled Status, which can later be converted once continuous residence reaches five years. The EU Settlement Scheme remains open in defined circumstances for qualifying family members of existing Settled or Pre-Settled Status holders, provided they meet the relationship and residence conditions set out in Appendix EU.

How the Two Frameworks Differ at the Threshold Stage

ILR is a general settlement outcome available across multiple immigration categories and depends on compliance with route-specific residence, Knowledge of Language and Life (KoLL) and suitability rules. Settled Status, by contrast, is a scheme-based status linked to pre-Brexit residence or family connection to existing EUSS holders. The evidential processes differ: ILR relies on BRP or eVisa confirmation and route documentation, while Settled Status is verified through digital residence checks, national insurance records and supplementary applicant evidence where needed.

Summary: ILR arises from the Immigration Rules as a permanent outcome across global immigration routes. Settled Status stems from Appendix EU and preserves rights of EEA/Swiss citizens and their family members connected to residence before 31 December 2020. Both grant indefinite permission, but the legal gateways, evidential standards and applicant cohorts are distinct.

Section B – Rights and Restrictions

Residence, Work and Study Rights

Both Indefinite Leave to Remain (ILR) and Settled Status grant the holder permission to live, work and study in the United Kingdom without immigration time limits. ILR holders can work or be self-employed in any sector and take up study without restriction. Settled Status holders under Appendix EU enjoy equivalent rights to employment, self-employment and education, consistent with the protections established under the EU Withdrawal Agreement.

Access to Healthcare and Public Funds

ILR and Settled Status holders are entitled to access healthcare through the National Health Service (NHS) without charge. Eligibility for public funds and benefits depends on meeting domestic criteria such as the habitual residence test. While ILR holders generally qualify for public funds, Settled Status holders may need to evidence ongoing residence in the UK to meet benefit eligibility conditions.

Proof of Status

ILR is traditionally evidenced by a Biometric Residence Permit (BRP) or, increasingly, a digital eVisa record under the Home Office’s digital immigration status system. Settled Status is exclusively digital and managed online through the GOV.UK service. Holders must use the “View and Prove” function to demonstrate their status to employers, landlords or other authorities. There is no physical document issued under the EU Settlement Scheme.

Absences from the United Kingdom

ILR can lapse automatically if the holder spends more than two continuous years outside the United Kingdom. In such cases, re-entry normally requires a Returning Resident visa application, which must demonstrate strong ties to the UK. Settled Status allows absences of up to five years (four for Swiss nationals) before status is lost. Where residence is broken, applicants may need to reapply under the EU Settlement Scheme or another immigration category, depending on their circumstances.

Voting Rights and Civic Participation

Neither ILR nor Settled Status confers the right to vote in UK general elections unless the holder also has British, Irish or qualifying Commonwealth citizenship. Both statuses allow participation in local elections in certain parts of the UK where reciprocal arrangements apply, subject to local electoral law.

Summary: ILR and Settled Status both provide the right to live, work and study in the UK with access to healthcare and potential eligibility for benefits. They differ in proof of status, length of permitted absence and how benefit entitlement is assessed. ILR lapses after two years abroad, while Settled Status endures up to five years and is held entirely in digital form.

Section C – Pathways to British Citizenship

Overview of Naturalisation Routes

Both Indefinite Leave to Remain (ILR) and Settled Status are valid foundations for British citizenship by naturalisation. Applicants typically follow one of two statutory routes: a five-year residence route requiring 12 months of ILR/Settled Status at the date of application, or a three-year residence route for spouses/civil partners of British citizens, which does not require holding ILR/Settled Status for 12 months if it is already held on the application date.

Core Eligibility Requirements

All applicants must meet the good character requirement, satisfy the Knowledge of Language and Life in the UK (KoLL) criteria where applicable, and demonstrate lawful residence throughout the qualifying period. Applicants must also meet the physical presence rule on the date exactly five or three years before the application and comply with absence limits—ordinarily not more than 450 days in the five-year route (270 in the three-year spouse route) and not more than 90 days in the 12 months preceding the application, subject to limited discretion.

Using ILR as the Basis for Naturalisation

ILR holders usually apply after holding ILR for at least 12 months, unless married to a British citizen. Evidence commonly includes the ILR BRP or digital eVisa record, passport(s), HMRC employment or self-assessment records, and travel history to confirm absences. Applicants should ensure continuity of lawful residence in eligible categories prior to ILR and verify that absences fall within published thresholds or are accompanied by an appropriate explanation where discretion is sought.

Using Settled Status as the Basis for Naturalisation

Settled Status holders follow the same naturalisation framework. Because Settled Status is digital-only, applicants must ensure their online EU Settlement Scheme (EUSS) record is accurate and that residence is corroborated by independent evidence such as HMRC or DWP records, tenancy or council tax records, education enrolment or other documents. Where residence prior to 31 December 2020 is relevant, applicants should address any gaps or prolonged absences with targeted evidence consistent with Appendix EU definitions.

Application Mechanics and Evidence

Naturalisation is made on Form AN with the prescribed fee and supporting documents, followed by identity verification and biometrics. Decision-ready applications set out a clear absence schedule, confirm the physical presence date, and explain any periods of unemployment, study or overseas travel with evidence. On approval, applicants must attend a citizenship ceremony to complete acquisition of British citizenship and obtain a certificate before applying for a British passport.

Practical Pitfalls and Tips

Common issues include miscounted absences, failure to evidence lawful residence before ILR/Settled Status was granted, and inconsistencies between digital EUSS data and tax or employment records. ILR holders should keep copies of historic BRPs where replaced by eVisas. Settled Status holders should download and retain evidence of residence used to obtain status and ensure the “View and Prove” service details match their current passport or national ID. Where absence limits are exceeded, applicants should assess whether discretion guidance applies and assemble targeted evidence of strong ties and residence.

Summary: ILR and Settled Status are equally valid springboards to naturalisation. Success turns on meeting statutory residence, absence, good character and KoLL requirements, and presenting coherent evidence—BRP/eVisa for ILR or the digital EUSS record for Settled Status—supported by HMRC/DWP and residence documentation to demonstrate continuous lawful residence within the relevant period.

Section D – Key Differences and Common Misunderstandings

Legal Foundation and Scope

Indefinite Leave to Remain (ILR) is governed by the Immigration Rules made under the Immigration Act 1971. It applies broadly to global migrants who meet qualifying residence and integration criteria. Settled Status, on the other hand, is defined in Appendix EU of the Immigration Rules and exists to implement the UK–EU Withdrawal Agreement, specifically protecting EEA, Swiss, and certain family members’ rights based on residence before 31 December 2020. The two statuses therefore operate under separate legal bases and policy frameworks.

Eligibility and Application Process

ILR applicants must complete a qualifying residence period in a visa route that leads to settlement, pay the prescribed Home Office fee, and satisfy suitability, KoLL, and English language requirements. Settled Status applicants under the EU Settlement Scheme apply online without a fee, relying on digital checks of residence through HMRC and DWP records, supported by additional documentation if required. While ILR applications are route-specific and subject to detailed evidential rules, the EUSS process is simplified but limited to a closed cohort of qualifying residents and family members.

Proof and Management of Status

ILR is confirmed by either a Biometric Residence Permit (BRP) or a digital eVisa record on the Home Office system. As part of the digitalisation programme, physical BRPs will be fully replaced by eVisas by 2025. Settled Status is digital-only and can be viewed or shared through the “View and Prove” service on GOV.UK. Holders must maintain access to the email address and identity document linked to their status to avoid verification issues.

Loss of Status and Returning Resident Applications

ILR lapses automatically after two years of continuous absence from the UK. Individuals who lose ILR through absence must apply for a Returning Resident visa before travelling back to the UK, demonstrating strong family, financial, or property ties. Settled Status is retained for up to five years of absence (four for Swiss citizens). After that period, it is lost, and re-entry requires a new application under the EU Settlement Scheme (if still eligible) or another route under the Immigration Rules.

Rights, Benefits, and Limitations

Both statuses provide full access to employment, self-employment, study, and NHS healthcare. Access to public funds depends on meeting domestic entitlement tests, including habitual residence. Neither status grants voting rights in UK general elections unless combined with British, Irish, or qualifying Commonwealth nationality. Both allow use as a basis for British citizenship applications after the relevant qualifying period.

Common Misunderstandings

• Settled Status is not equivalent to ILR in legal origin; it cannot be “converted” to ILR.
• Pre-Settled Status is temporary and must be upgraded to Settled Status before applying for British citizenship.
• Holding Settled Status does not waive good character or residence requirements for naturalisation.
• Having both ILR and Settled Status is possible but unnecessary—only one applies in practice, usually the most recent grant.
• Loss of digital access (e.g., forgotten login) does not remove Settled Status but can complicate verification; holders should update their account promptly.

Summary: ILR is a general settlement category rooted in UK immigration law and available to migrants across multiple routes. Settled Status is a specific status under Appendix EU, confined to EEA/Swiss nationals and their family members linked to pre-Brexit residence. Differences exist in eligibility, documentation, permitted absences, and administration, but both confer long-term residence and serve as valid bases for naturalisation.

FAQs

Can you hold both ILR and Settled Status?

Yes, but only in limited cases. For example, a person who qualified for ILR through a visa route may also have applied for Settled Status as an EEA family member. In practice, only one status can be relied upon at any given time, and the rights exercised will generally correspond to the most recently granted status recorded by the Home Office.

Does Settled Status count as permanent residence?

Yes. Settled Status constitutes indefinite permission to remain under UK law and is equivalent in legal effect to permanent residence, though it differs from the former EU law status that existed prior to Brexit. Holders enjoy similar entitlements to ILR, including the right to live, work and study in the UK without time restriction.

What happens if you travel outside the UK for more than two years?

ILR lapses automatically after two continuous years outside the UK. Individuals who lose ILR must apply for a Returning Resident visa before travelling back, providing evidence of strong family, financial or other ties to the UK. Settled Status is retained for up to five consecutive years of absence (four for Swiss nationals). Once that period passes, Settled Status lapses and the person must apply for a new immigration status before returning to live in the UK.

Is one status stronger for British citizenship purposes?

Both ILR and Settled Status are equally valid for British citizenship applications. However, ILR holders often face a simpler evidential process as their residence is usually confirmed by visa records and BRPs or eVisas. Settled Status applicants must ensure their digital EU Settlement Scheme record and supporting residence evidence are accurate and align with Home Office data.

Can Settled Status holders apply for ILR?

No. Settled Status is a separate form of indefinite permission that cannot be converted into ILR. Holders instead progress directly from Settled Status to British citizenship if they meet the naturalisation requirements, including residence and good character criteria.

What if I lose access to my digital Settled Status account?

Loss of digital access does not cancel Settled Status, but it can complicate verification. Holders should update their contact details and identity documents through the Home Office’s online “Update your UK Visas and Immigration account” service to ensure continued access and the ability to prove their rights.

Summary: ILR and Settled Status both provide long-term residence, but they differ in how they are held and maintained. ILR can lapse after two years abroad, while Settled Status endures for up to five years. Both can support a British citizenship application, and holders should monitor absences, residence records, and digital access to preserve eligibility.

Conclusion

Indefinite Leave to Remain (ILR) and Settled Status both confer long-term residence rights in the United Kingdom, allowing holders to live, work and study without time restrictions. Despite these shared benefits, they are legally distinct and operate under different frameworks. ILR stems from the Immigration Rules under the Immigration Act 1971 and applies to a wide range of global immigration categories. Settled Status arises under Appendix EU of the Immigration Rules and is limited to EEA, Swiss and certain family members who established residence before 31 December 2020.

The practical effects of each status are similar, but their administration, proof, and loss conditions differ. ILR can lapse after two years of absence, while Settled Status endures for up to five years (four for Swiss citizens). ILR is evidenced by a Biometric Residence Permit or an eVisa; Settled Status exists only in digital form and must be accessed online. Both statuses serve as qualifying grounds for British citizenship, subject to residence, good character, and absence conditions.

Applicants should always confirm which status they hold and ensure that their digital or documentary records remain accurate. Those who travel frequently or intend to live abroad should monitor their absence periods carefully to avoid automatic lapse of status. If ILR is lost through long absence, a Returning Resident visa must be obtained to regain settlement rights. Settled Status holders should maintain access to their digital accounts and update details as needed to prove their rights effectively.

Summary: ILR and Settled Status both provide stability and a route to British citizenship but differ in origin, documentation and conditions of retention. Recognising these differences enables applicants to maintain lawful residence, protect their status, and plan confidently for naturalisation or future travel.

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