Last updated: May 2026  ·  Reading time: ~14 minutes  ·  UK Immigration — England & Wales

Indefinite Leave to Remain and Settled Status are often treated as interchangeable terms — in conversation, in the press, and sometimes in professional contexts. Both allow you to live and work in the UK without a time limit. Both are referred to as settlement. Both can lead to British citizenship.

They are not, however, the same thing. They derive from different legal frameworks, apply to different groups of people, carry different absence rules, and in a number of practical situations — particularly in relation to naturalisation — treating them as equivalent can lead to significant errors.

This guide explains what distinguishes ILR from Settled Status, who each applies to, how the rules differ in practice, and what each status means for the path to British citizenship.

If you would like to discuss your specific circumstances, our immigration solicitors in Harrow offer a free initial consultation.

Which Status Applies to You?

The following provides a general guide to identifying which status you hold or are working towards.

You are likely on the ILR route if:

• You are a non-EEA national residing in the UK on a Skilled Worker, family, or other work or study visa
• You are an EEA national who did not apply under the EU Settlement Scheme and instead applied on a standard immigration route
• You have been lawfully resident in the UK for ten or more years under the Long Residence route

You are likely on the Settled Status route if:

• You are an EU, EEA or Swiss citizen who was living in the UK before 31 December 2020
• You are the family member of such a person and were also resident in the UK by that date
• You currently hold Pre-Settled Status and are working towards upgrading to full Settled Status

The Legal Foundations

Indefinite Leave to Remain is granted under the Immigration Act 1971 and the Immigration Rules. It forms part of the UK’s domestic immigration system and has existed in broadly its current form for decades. The conditions, eligibility criteria, and rules around retention of ILR are set by the UK Government and may be amended by it.

Settled Status is granted under Appendix EU to the Immigration Rules, which implements the EU (Withdrawal Agreement) Act 2020. Because Settled Status derives from the UK–EU Withdrawal Agreement, it carries international treaty protections that standard ILR does not. Decisions regarding Settled Status — including refusals and revocations — must be made in a manner that is proportionate and compatible with the Withdrawal Agreement, and applicants have specific rights of redress beyond those available to standard ILR holders.

In summary: ILR is a domestic status. Settled Status is an internationally protected status. Both remove the immigration time limit, but they rest on different legal foundations with different safeguards.

Who Each Status Applies To

Indefinite Leave to Remain

ILR is available to anyone who meets the qualifying requirements under the Immigration Rules, regardless of nationality. The most common routes include:

• Work routes (typically 5 years) — Skilled Worker, Global Talent, Innovator Founder, Scale-up, Health and Care Worker visa holders
• Family routes (typically 5 years) — Spouse or partner under Appendix FM, parent of a British child, adult dependent relatives
• Long Residence (10 years) — Anyone with ten continuous years of lawful leave in the UK, regardless of visa category
• Protection routes — Refugees and those granted humanitarian protection (exempt from the application fee)
• Other routes — UK Ancestry visa holders (5 years), Returning Residents

In all cases, applicants must satisfy the Knowledge of Language and Life requirement — passing the Life in the UK test and meeting the English language requirement — unless exempt.

Settled Status (EU Settlement Scheme)

Settled Status under the EU Settlement Scheme applies to EU, EEA and Swiss citizens who were resident in the UK by 31 December 2020, the family members of those citizens who were also resident by that date, and certain family members joining a qualifying citizen after that date under the Withdrawal Agreement’s family reunion provisions.

To be granted Settled Status rather than Pre-Settled Status, applicants must demonstrate at least five years of continuous residence. Those with less than five years receive Pre-Settled Status, which must be upgraded once the five-year threshold is reached.

The Key Practical Differences

1. Absence Rules

The rules governing how long you may spend outside the UK without losing your status differ significantly between ILR and Settled Status.

ILR absence rules: ILR lapses if you spend a continuous period of two years or more outside the UK. There is no discretion — an absence of two years or more in a single period results in the loss of ILR. Re-entry would then require an application as a Returning Resident, which is not automatically granted.

During the qualifying period, absences are also tightly controlled. On most routes, no more than 180 days outside the UK in any rolling 12-month period is permitted.

Settled Status absence rules: Settled Status does not lapse unless the holder is absent from the UK for a continuous period of five years — considerably more generous than the ILR equivalent. During the qualifying period, the requirement is that absences do not exceed six months in any 12-month period, though exceptions apply for serious illness, compulsory military service, and study.

2. How Status Is Evidenced

ILR holders: The Home Office has moved all ILR holders to a digital immigration status — an eVisa — which is a record held in the Home Office database. It is accessed through a UKVI account and shared with employers, landlords, and others using a share code. Any existing Biometric Residence Permit should be retained, but the eVisa constitutes the current evidence of status.

Settled Status holders: Settled Status has always been digital only. There is no physical document. Status is accessed and shared through the online service at gov.uk/view-prove-immigration-status using a share code.

For both groups, UKVI account details — including email address, telephone number, and passport number — must be kept current to ensure uninterrupted access to status evidence.

3. Application Process

ILR applications are submitted online through GOV.UK and require extensive supporting documentation: employment records, payslips, bank statements, a comprehensive absence schedule, evidence of English language proficiency, and a Life in the UK test pass certificate. A standard application fee applies per person. Priority and super priority services are available at additional cost. For a full overview of processing timelines, see our guide on how long an ILR application takes.

Settled Status applications are free of charge — there is no Home Office fee. The application is completed through the EU Exit: ID Document Check app or, for those without a compatible device, by post. The evidential requirements are considerably lighter than for ILR.

4. The Suitability Assessment

Both ILR and Settled Status applications are subject to a suitability check. The Home Office may refuse or revoke either status where an applicant has a criminal history or has used deception in a previous application.

For ILR, the suitability requirements are set out in the Immigration Rules and applied strictly. A custodial sentence of 12 months or more will generally result in refusal. Shorter sentences, cautions, and certain civil orders are also assessed.

For Settled Status, the suitability assessment must be conducted proportionately and in a manner compatible with the Withdrawal Agreement. Even where a criminal conviction exists, the Home Office must weigh the individual’s personal circumstances, family ties, and length of residence. This proportionality requirement is a genuine legal protection that ILR holders do not benefit from.

Pre-Settled Status: The Stepping Stone to Settled Status

EU, EEA and Swiss citizens who applied under the EU Settlement Scheme with fewer than five years of continuous residence will have been granted Pre-Settled Status. This permits continued residence in the UK for a further five years while the qualifying period for Settled Status is completed.

• Pre-Settled Status is temporary and must be upgraded before it expires
• An application to upgrade to Settled Status should be made as soon as five years of continuous residence are completed — there is no requirement to wait for Pre-Settled Status to expire
• If Pre-Settled Status expires without an upgrade application being made, the holder becomes an overstayer and would need to submit a late application demonstrating reasonable grounds
• Absences of more than six months in any 12-month period will break the continuity of residence for Settled Status purposes, subject to applicable exceptions

EU Permanent Residence: A Pre-Brexit Status

EU Permanent Residence was a status available to EU citizens after five years of exercising treaty rights in the UK prior to Brexit. It was issued as a physical document.

EU Permanent Residence as a standalone status no longer has legal effect. It was effectively replaced by the EU Settlement Scheme. Holders of a Permanent Residence document should have applied under the EUSS and been granted Settled Status. The old document does not evidence any current right to remain in the UK.

This is particularly relevant for naturalisation purposes. Where an applicant intends to rely on a period of EU Permanent Residence in their residence calculation for citizenship, specialist advice should be obtained, as the Home Office’s approach has been the subject of litigation.

Travelling Outside the UK: A Comparison

Can ILR Be Revoked?

Yes, though revocation is relatively uncommon. ILR may be revoked where it was obtained through deception, fraud, or misrepresentation; where the holder is subject to a deportation order following a serious criminal conviction; or where the holder has been absent from the UK for two or more continuous years.

Where ILR has lapsed due to a prolonged absence, an application to re-enter as a Returning Resident may be made. This is not automatically granted and requires demonstrating strong ties to the UK and that the UK has remained the applicant’s main home throughout the period of absence. Legal advice is recommended in such circumstances.

Can Settled Status Be Revoked?

Yes. Grounds for revocation include fraud or misrepresentation in the original application, a serious criminal conviction, and a continuous absence of five years from the UK. As noted above, revocation must comply with the proportionality requirements of the Withdrawal Agreement, and those facing revocation have stronger grounds of challenge than standard ILR holders.

Children and Settlement Status

A child born in the UK to a parent who holds ILR or Settled Status is a British citizen by birth, provided at least one parent is either a British citizen or settled in the UK at the time of the child’s birth. “Settled” for this purpose includes both ILR and Settled Status.

Children may also apply for ILR or Settled Status in their own right, or as dependants on a parent’s application, depending on circumstances. Under the EU Settlement Scheme, children born in the UK to Settled Status holders after 30 June 2021 may apply for Settled Status in their own right.

Pathway to British Citizenship

From ILR: Naturalisation as a British citizen is generally available after holding ILR for at least 12 months. An exception applies for those married to a British citizen, for whom no minimum period of ILR is required before applying. The applicant must also have been physically present in the UK throughout the 12 months prior to the application and must not have spent more than 90 days outside the UK during that period.

From Settled Status: The position is similar — naturalisation is generally available after holding Settled Status for 12 months. However, where any part of the qualifying year was spent on Pre-Settled Status rather than full Settled Status, advice should be sought before applying, as the Home Office’s treatment of Pre-Settled Status periods in citizenship applications has been the subject of litigation.

Summary Comparison

Application fee for ILR — see GOV.UK for current rates. Fees are subject to change.

Frequently Asked Questions

A Note on Proposed Settlement Reforms

During 2025 and into 2026, the UK Government has been consulting on reforms to the settlement and citizenship process, including proposals relating to extended qualifying periods and the concept of earned settlement. As at the date of this article, the existing routes remain in place. Those planning to apply for ILR or Settled Status in the coming years should monitor Home Office announcements or seek advice from a regulated immigration solicitor.

How Kenton Solicitors Can Help

Kenton Solicitors is a Law Society CQS-accredited firm based in Harrow, London, with experience across all settlement routes including ILR, EU Settlement Scheme applications, Pre-Settled to Settled Status upgrades, and British citizenship applications.

Our immigration team can advise on:

• Which settlement route applies to your circumstances and what steps are required
• Whether you are eligible to apply now or need to continue building your qualifying period
• How your absence record affects your eligibility
• What documentation is required for your application
• Your options if a previous application has been refused or your status has lapsed

To speak to a member of our immigration team, call 020 8907 2444 or email info@kentonsolicitors.co.uk.

This article is intended for general information only and does not constitute legal advice. Immigration law is subject to change. The information in this article reflects the position as at May 2026. For advice specific to your circumstances, please contact a regulated immigration solicitor.