ILR vs Settled Status — What Is the Difference?

ILR (Indefinite Leave to Remain) and Settled Status are both forms of permanent UK residence. They give you the same core rights: the right to live and work in the UK indefinitely, access to the NHS, and eligibility for public funds. The key differences are who gets each one and how long you can stay away from the UK before your status lapses.

Key Facts at a Glance

Detail	ILR	Settled Status
Who holds it	Non-EU visa holders (e.g. Skilled Worker)	EU/EEA/Swiss citizens who applied via EUSS
How to get it	5 years on qualifying visa + Home Office application	EU Settlement Scheme application
Absence before lapsing	2 continuous years	5 continuous years
Life in the UK test needed?	Yes	No (for Settled Status itself)
Life in the UK test for citizenship?	Yes	Yes
Right to work	Yes	Yes
Access to NHS	Yes	Yes
Access to public funds	Yes	Yes
Eligible for British citizenship?	Yes (after 12 months ILR + other requirements)	Yes (via ILR equivalent route)

Quick Overview

✅ ILR and Settled Status give equivalent rights for most everyday purposes
✅ Both allow permanent residence, work, study, and access to NHS and public funds
⚠️ The absence rules are different — ILR lapses after 2 years away, Settled Status after 5 years
⚠️ EU citizens who got Settled Status did NOT need the Life in the UK test — but they DO need it for British citizenship
📌 You cannot convert one status to the other — they are equivalent, not one replacing the other
📌 Settled Status is only available to EU/EEA/Swiss citizens who were resident before 31 December 2020
💡 If you have Settled Status and want British citizenship, the Life in the UK test is required
💡 If your ILR lapses due to absence, you need to reapply — this is costly and not guaranteed

Who Gets ILR and Who Gets Settled Status

ILR is for non-EU nationals who have lived in the UK on a qualifying visa — typically a Skilled Worker visa, a family visa, or another work or family route. After 5 years on the qualifying visa, they apply to the Home Office for ILR. Use our ILR eligibility calculator to find your exact qualifying date and total cost.

Settled Status was created specifically for EU, EEA, and Swiss citizens (and their family members) who were living in the UK before 31 December 2020. They applied through the EU Settlement Scheme (EUSS). The deadline for most EUSS applications was 30 June 2021, with some late applications still being processed.

If you are a non-EU citizen on a Skilled Worker visa or family visa, you apply for ILR. If you are an EU citizen who was in the UK before the Brexit deadline, you should have Settled Status or Pre-Settled Status through the EUSS.

New EU citizens arriving in the UK after 31 December 2020 follow the same visa routes as non-EU citizens. They will apply for ILR in the same way, not Settled Status.

Core Rights — What Both Give You

Both ILR and Settled Status give you the following rights:

Permanent right to live in the UK — no visa to renew, no expiry date on your status
Right to work — any job, any employer, no restrictions
Right to study — at any institution, including home fee rates at universities
NHS access — same as UK citizens, no Immigration Health Surcharge
Access to public funds — benefits, social housing, and other public services
Right to apply for British citizenship — subject to meeting other requirements

For the vast majority of everyday situations — employment, renting, healthcare, banking — ILR and Settled Status are treated identically.

The Critical Difference — Absence Rules

This is where the two statuses diverge significantly.

ILR lapses if you spend 2 continuous years outside the UK. If you leave the UK and do not return within 2 years, your ILR is lost. You would need to apply for a Returning Resident visa and demonstrate strong ties to the UK — a process that is not guaranteed and involves further cost.

Settled Status lapses if you spend 5 continuous years outside the UK. The 5-year threshold gives Settled Status holders considerably more flexibility if they need to spend extended periods abroad.

This difference matters most for people who travel frequently or who may need to care for family abroad, work overseas, or spend extended time outside the UK.

If you have ILR and are planning a long period abroad, make sure you return before the 2-year mark. If in doubt, get advice before leaving.

The Life in the UK Test — Different Requirements

One of the most important practical differences relates to the Life in the UK test and British citizenship.

ILR applicants must pass the Life in the UK test as part of their ILR application. The test is a requirement before ILR is granted.

Settled Status applicants did NOT need the Life in the UK test for Settled Status itself. The EU Settlement Scheme had no Life in the UK test requirement.

However, both ILR holders and Settled Status holders must pass the Life in the UK test to apply for British citizenship. EU citizens who skipped the test for Settled Status cannot skip it for citizenship. If you have Settled Status and want British citizenship, you will need to pass the Life in the UK test.

Can You Convert One to the Other?

No. ILR and Settled Status are equivalent statuses — they serve the same purpose and give the same rights. You do not need to convert one to the other. A person with Settled Status does not need to "upgrade" to ILR. They are already at the same level of residence rights.

The confusion often comes because people see ILR as the "normal" route and Settled Status as something different. In terms of rights, they are equivalent. They are simply different mechanisms for the same outcome, created for different groups.

Applying for British Citizenship From Each Status

Both ILR holders and Settled Status holders can apply for British citizenship. The process is the same and uses Form AN. The full citizenship requirements are identical for both groups.

For the standard route:

5 years of lawful residence
12 months with ILR or Settled Status immediately before applying
B1 English level
Life in the UK test pass
Good character

For Settled Status holders, the 12-month waiting period after getting Settled Status applies — same as for ILR. If you received Settled Status and immediately want to apply for citizenship, you need to have held it for 12 months first.

What Happened to Pre-Settled Status?

EU citizens who applied to the EU Settlement Scheme and had less than 5 years in the UK at the time of application were granted Pre-Settled Status. This is a form of temporary leave — not permanent residence.

Pre-Settled Status holders need to apply for Settled Status once they have 5 years of residence. They should not confuse Pre-Settled Status with Settled Status — they are not the same. Pre-Settled Status holders do not have the same rights as Settled Status or ILR holders, and their status has an end date.

Common Mistakes

❌ EU citizens assuming they do not need the Life in the UK test for citizenship Settled Status did not require the Life in the UK test. But British citizenship does — for everyone, including EU citizens with Settled Status. Many EU citizens are surprised to discover this. Start preparing here.

❌ Thinking Settled Status needs to be "upgraded" to ILR Settled Status and ILR are equivalent. There is no upgrade. An EU citizen with Settled Status does not need to apply for ILR. They are already permanent residents with the same rights.

❌ Underestimating the ILR absence rule ILR lapses after 2 continuous years outside the UK. This is not a long time. People who plan extended stays abroad — caring for elderly parents, working overseas — must track this carefully. Settled Status gives 5 years — nearly three times more flexibility.

❌ Assuming Pre-Settled Status gives the same rights as Settled Status It does not. Pre-Settled Status is temporary. It has an end date. Holders need to apply for Settled Status once they qualify. Check your status carefully.

❌ Not applying for citizenship during the 12-month window when eligible Once you have held ILR or Settled Status for 12 months and meet all other requirements, there is no benefit to delay. Apply promptly. Status, fees, and rules can change.

Expert Tips

If you have ILR and travel frequently, track your absences. The 2-year absence rule for ILR is a hard boundary. Spending more than 2 continuous years abroad causes ILR to lapse. Keep a record of all travel outside the UK.
If you have Settled Status and are approaching the 5-year anniversary of your first grant, consider applying for citizenship. The 5-year absence allowance is more generous than ILR, but it is not unlimited. British citizenship removes the absence concern entirely.
EU citizens with Settled Status: start the Life in the UK test preparation early. The test was not required for Settled Status, so many EU citizens have never thought about it. If British citizenship is the goal, the test is mandatory — and it covers UK history and society in detail.
Check your status document carefully. ILR holders have a Biometric Residence Permit or an entry in their passport. Settled Status holders have a digital status record (no physical document). Make sure you can evidence your status for employers, landlords, and the Home Office.
Both statuses require care with absence rules. The rules differ (2 years vs 5 years), but both can lapse. If you are planning extended travel, check the rules for your specific status before you go.

Frequently Asked Questions

What is the difference between ILR and Settled Status?

Both give permanent UK residence rights. ILR is for non-EU nationals who have completed 5 years on a qualifying visa. Settled Status was for EU/EEA/Swiss citizens who were in the UK before 31 December 2020. The main practical difference is the absence rule: ILR lapses after 2 continuous years away, Settled Status after 5 continuous years.

Are ILR and Settled Status the same thing?

They give equivalent rights for most purposes — permanent residence, right to work, NHS access. But they are different legal statuses created by different legal instruments. They apply to different groups of people and have different absence rules.

I have Settled Status. Do I need to apply for ILR as well?

No. Settled Status and ILR are equivalent. You do not need to obtain ILR on top of Settled Status. You already have permanent residence.

Do EU citizens need the Life in the UK test?

Not for Settled Status — that was not a requirement of the EU Settlement Scheme. But EU citizens who want British citizenship must pass the Life in the UK test. The test is required for citizenship regardless of immigration route.

What happens if I lose my ILR by being abroad for more than 2 years?

Your ILR lapses. You would need to apply for a Returning Resident visa. This is not guaranteed to be granted and requires demonstrating strong ties to the UK. Avoid this by returning within the 2-year window.

Can I travel more freely with Settled Status than ILR?

Yes, in terms of extended absence. Settled Status lapses after 5 continuous years outside the UK, compared to 2 years for ILR. This gives Settled Status holders more flexibility for extended trips abroad.

How This Aligns With Official Guidance

The rights and requirements for ILR are set out in the Immigration Rules. The rights for EU Settlement Scheme holders are set out in the EU Settlement Scheme and the Withdrawal Agreement between the UK and the EU. GOV.UK confirms that both statuses give equivalent rights for most everyday purposes, with the key differences being the absence rules and the original application process. The Life in the UK test requirement for British citizenship applies to holders of both statuses.

Official Resources

Our Free Tools

EU citizens with Settled Status who need to pass the Life in the UK test for citizenship can prepare here — completely free:

570 practice questions — full question bank
Mock exam — timed, 24 questions, exam conditions
Cheat sheet — key facts for the test
FAQ — common questions about the test and immigration

Know Your Status, Plan Your Next Step

Whether you have ILR or Settled Status, the path to British citizenship requires the same steps: 12 months at permanent resident level, a Life in the UK test pass, B1 English, and good character. Start your test preparation today — it is the step fully within your control.

Last reviewed: April 2026 — figures correct at time of publication. Always check GOV.UK for the latest fees and requirements.