Indefinite Leave to Remain (ILR) and Settled Status both allow long-term residence in the UK without immigration time limits, but they stem from different legal frameworks and are administered differently. ILR is granted under the Immigration Rules pursuant to the Immigration Act 1971 across multiple routes (e.g., Skilled Worker, Partner, Long Residence). Settled Status arises under Appendix EU, protecting the rights of EEA/Swiss citizens and eligible family members resident in the UK by 31 December 2020.
Understanding these differences – who qualifies, how rights are maintained, and how each leads to British citizenship — is essential for planning lawful residence and naturalisation.
Both statuses allow work, study, and access to NHS care, but proof and preservation differ. ILR is increasingly digital (eVisa), while many still hold Biometric Residence Permits (BRPs). Settled Status is entirely digital via the UK government online service. Absence rules differ: ILR in most cases will lapse after two years abroad; Settled Status after five years (four for Swiss citizens). Access to public funds depends on UK eligibility rules, including habitual residence tests.
The EU Settlement Scheme (EUSS) remains open in specific cases for qualifying family members of existing Settled or Pre‑Settled Status holders. Pre‑Settled Status is temporary and must be converted to Settled Status — and from 16 July 2025 a new rule allows holders to convert once they have at least 30 months’ UK residence in the most recent 60 months rather than strictly five years continuous residence.
This guide covers:
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Legal basis and eligibility for ILR and Settled Status
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Rights, restrictions, and lapse rules
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Pathways to British citizenship
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Key differences and common misconceptions
It includes practical points on proof of status, absence rules, benefit eligibility, and what to do if status is lost.
Section A – Legal Basis and Eligibility
ILR: Legal Basis
ILR grants indefinite permission to remain in the UK under the Immigration Rules (Immigration Act 1971). It is available across multiple routes, including Skilled Worker, Partner, Long Residence, UK Ancestry, and certain protection or discretionary categories. The Home Office is gradually replacing physical BRPs with digital eVisas.
ILR: Eligibility
Most ILR routes require five years of continuous lawful residence, though some (e.g., Innovator Founder, Global Talent) allow accelerated settlement. Applicants must pass the Life in the UK Test, meet English language requirements, and satisfy suitability and good character checks. Excessive absences may break continuous residence and delay eligibility.
Settled Status: Legal Basis
Settled Status is indefinite permission under Appendix EU, created to implement the UK–EU Withdrawal Agreement. It protects EEA/Swiss citizens and eligible family members resident by 31 December 2020. Status is digital-only; no physical document is issued.
Settled Status: Eligibility
Individuals with at least five years of continuous qualifying residence are eligible for Settled Status. Those with less than five years receive Pre‑Settled Status, which must be upgraded once five years are reached. From 16 July 2025, the rules for upgrading Pre‑Settled Status have been relaxed: holders may apply for or be automatically converted to Settled Status if they have been resident in the UK for 30 months within the last 60 months, rather than strictly five years uninterrupted. The EUSS remains open for qualifying family members of existing holders under Appendix EU requirements.
Key Difference at the Threshold:
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ILR applies broadly across multiple immigration categories with route-specific requirements.
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Settled Status is scheme-based, tied to pre-Brexit residence or family connection, verified digitally, and now subject to the 30/60 month rule for Pre‑Settled holders.
Section B – Rights and Restrictions
Residence, Work, and Study
Both ILR and Settled Status allow living, working, and studying in the UK without restrictions. Rights to employment, self-employment, and education are equivalent.
Access to Healthcare and Public Funds
Both statuses provide NHS access. Public funds eligibility depends on domestic criteria like the habitual residence test. ILR holders generally qualify; Settled Status holders must evidence ongoing residence in some cases.
Proof of Status
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ILR: BRP or eVisa record
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Settled Status: Digital-only via the online service
Absences
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ILR: In general, ILR will lapse if absent from the UK for more than 2 continuous years. For eligibility before grant, many routes require no more than 180 days’ absence in any rolling 12-month period.
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Settled Status: Lapses if absent from the UK for 5 continuous years (4 years for Swiss citizens). For upgrading from Pre‑Settled Status, the 30/60 month rule allows flexibility in calculating residence.
Voting and Civic Participation
Neither status grants general election voting rights unless the holder is also British, Irish, or a qualifying Commonwealth citizen. Local voting may be possible where laws allow.
Summary:
Both provide work, study, NHS access, and a basis for naturalisation, but differ in status evidence, absence limits, and benefit eligibility.
Section C – Pathways to British Citizenship
Overview
Both ILR and Settled Status allow naturalisation. Routes include:
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Five-year residence route: typically requires 12 months of ILR/Settled Status before applying
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Three-year route for spouses/civil partners of British citizens
Core Eligibility
Applicants must meet:
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Good character requirement
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Knowledge of Language and Life (KoLL)
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Continuous lawful residence
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Absence limits: generally ≤450 days in the previous 5 years and ≤90 days in the last 12 months
Evidence Requirements
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ILR: BRP or eVisa, passport, HMRC/self-assessment records, travel history
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Settled Status: Digital EUSS record, HMRC/DWP records, tenancy or council tax records
Practical Tips
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Track absences accurately — both ILR elimination of continuous residence and the 30/60 month rule for EUSS require good absence records.
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Keep historic BRPs or EUSS digital evidence; Pre‑Settled holders should keep evidence to satisfy the 30/60 month rule.
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Ensure all documentation aligns with the relevant period of residence and the specific requirements of your route.
Summary:
Success depends on meeting residence, absence, good character, and KoLL requirements, with clear evidence: BRP/eVisa for ILR; digital EUSS record for Settled Status (or Pre‑Settled converting under the 30/60 rule).
Section D – Key Differences and Misunderstandings
| Aspect | ILR | Settled Status |
|---|---|---|
| Legal Basis | Immigration Rules (Immigration Act 1971) | Appendix EU (Withdrawal Agreement) |
| Eligible Cohort | Global migrants across multiple routes | EEA/Swiss nationals & eligible family members resident by 31 Dec 2020 |
| Proof of Status | BRP / eVisa | Digital only |
| Absence Limits | Lapses after 2 years of continuous absence | Lapses after 5 years (4 for Swiss); 30/60 month rule applies for Pre‑Settled upgrade |
| Application Fee | Yes | Generally no fee |
| Conversion | N/A — ILR is the settlement route | Pre‑Settled must upgrade to Settled; the new 30/60 rule provides flexibility |
| Common Misunderstandings | ILR may still lapse with a 2-year absence Rolling absence rules apply for eligibility |
– Settled Status cannot be converted to ILR – Pre‑Settled is temporary – Holding Settled Status does not waive naturalisation requirements – Losing digital access does not remove Settled Status but may hinder verification |
Summary:
ILR is a general settlement category open to many routes; Settled Status is specific to EEA/Swiss nationals (and their eligible family members) resident pre‑Brexit. Both confer long-term residence and citizenship eligibility but differ significantly in origin, eligibility criteria (especially after 16 July 2025), absence rules, and evidence of status.
Recent & Upcoming Changes (November 2025)
1. EU Settlement Scheme (EUSS) Pre‑Settled – Settled Status
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From 16 July 2025, Pre‑Settled Status holders can be upgraded to Settled Status if they have been resident in the UK for 30 months within the last 60 months, rather than needing a full five years of continuous residence.
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This rule applies only to holders with valid Pre‑Settled Status; lapsed or cancelled statuses are not eligible.
2. Absence Rules Update
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ILR: Lapses after 2 years continuous absence; exceeding 180 days absence in a rolling 12 months may reset the qualifying period.
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Settled Status: Lapses after 5 years outside the UK (4 for Swiss citizens); Pre‑Settled → Settled upgrades follow the new 30/60 month calculation.
3. Proposed Future Changes (not yet in force)
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The UK Government has announced plans to extend the standard qualifying period for ILR from 5 years to 10 years for most visa routes.
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Additional reforms under consultation include potential changes to English language requirements, good character checks, and minimum income thresholds.
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These proposals are not yet law, but applicants should monitor developments to plan ILR applications effectively.
4. Practical Tip
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Track absences carefully, maintain all digital and physical evidence (BRP, eVisa, or EUSS records), and ensure continuous residence calculations meet current rules to avoid delays or lapses in status.
Conclusion
ILR and Settled Status both provide long-term residence in the UK, allowing work, study, and NHS access. ILR originates under the Immigration Rules and applies globally, while Settled Status is limited to EEA/Swiss nationals and certain family members resident before 31 December 2020.
Key differences:
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ILR may lapse after two years abroad; Settled Status holds up to five years outside the UK (four for Swiss).
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ILR proof is via BRP/eVisa; Settled Status is digital-only.
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From 16 July 2025, Pre‑Settled holders can upgrade if they have been resident for 30 months in the last 60 months, relaxing the previous five-year continuous residence requirement.
Both can lead to British citizenship if residence, absence, and good character requirements are met. Applicants should confirm their status, monitor absences, and maintain accurate digital or documentary evidence. Returning Resident visas may be needed if ILR is lost. Settled Status holders should keep digital records current.
How LawSentis Can Help
At LawSentis, we provide premium IAA Level 3 regulated immigration services to help you navigate ILR and Settled Status applications. Our team can:
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Assess your eligibility and advise on the correct route
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Guide you through documentation and evidence requirements
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Track absences and advise on Returning Resident or citizenship applications
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Ensure digital records, BRPs, or eVisas are accurate and up to date
We simplify the process, helping you protect your UK residence, avoid mistakes, and plan confidently for naturalisation. Book a consultation today to get expert advice tailored to your situation.