ILR vs EU settled status: what is actually different?

Settled status is legally a type of indefinite leave to remain (ILR), so the two statuses give you almost identical rights to live, work, study and claim benefits in the UK. The practical differences are how you got the status, what it cost, and above all the absence rules for keeping it: ordinary ILR lapses after 2 continuous years outside the UK, while EU Settlement Scheme settled status survives up to 5 continuous years away (4 years for Swiss citizens). GOV.UK itself describes settled status as "indefinite leave to remain under the EU Settlement Scheme", and both statuses lead to British citizenship on exactly the same terms.

Two routes to the same destination

Ordinary ILR is granted under the Immigration Rules. Most people qualify after 5 years on an eligible visa (Skilled Worker, family, UK Ancestry), after 3 years on routes such as Global Talent or Innovator Founder, or after 10 years of continuous lawful residence. The application currently costs £3,226 per person and usually involves meeting salary or relationship requirements, plus the Life in the UK test and an English language requirement at the settlement stage.

Settled status was created for a specific group: EU, EEA and Swiss citizens (and their family members) living in the UK by 31 December 2020, protected by the Withdrawal Agreement after Brexit. It was granted after 5 years' continuous residence, the application was free, and there was no Life in the UK test, no English test and no income requirement at that stage. The main deadline was 30 June 2021, though people upgrading from pre-settled status and joining family members can still apply.

So the legal basis and the entry ticket are different, but the destination is the same: permanent settlement in the UK.

The rights are almost identical

With either status you can live in the UK permanently, work for any employer, study, use the NHS, and access public funds such as benefits and pensions if you meet the normal eligibility rules for each benefit. Neither status gives you a British passport or the right to vote in general elections; for that you need to naturalise.

Both statuses are now also proved the same way. Physical documents have been replaced by the eVisa, a digital record of your immigration status. You view your status online and generate a share code to prove your right to work or rent, whether your settlement came through the Immigration Rules or the EU Settlement Scheme.

The absence rules are the big difference

This is where the two statuses genuinely diverge. Ordinary ILR lapses automatically if you spend 2 continuous years outside the UK, Channel Islands and Isle of Man. Settled status is far more generous: you can spend up to 5 continuous years in a row outside those territories without losing it, and Swiss citizens get 4 continuous years. In both cases the clock resets if you return before the deadline, and in both cases losing the status means applying again from outside the UK, for example with a £726 Returning Resident visa for ex-ILR holders who can show strong ties to the UK. We cover the 2-year rule in detail in does ILR lapse if you live outside the UK.

The route to citizenship is the same

For naturalisation, the Home Office treats ILR and settled status identically. You normally need to have held either status for 12 months, have lived in the UK for 5 years, be of good character, and meet the knowledge of language and life requirement: an approved English qualification (or Welsh or Scottish Gaelic) plus a pass in the Life in the UK test (18 out of 24 questions, £50 per attempt). The adult naturalisation fee is £1,839 including the citizenship ceremony. EU citizens who skipped the test when getting settled status must still pass it to naturalise. If you are weighing up whether upgrading is worth it, see settled status vs British citizenship.

Which status is "better"?

Neither, really. You do not choose between them: your nationality and immigration history determine which one you hold. If you already have settled status, there is no benefit in applying for ordinary ILR, and vice versa. The sensible comparison is between staying settled and naturalising as British, because only citizenship removes absence limits entirely and adds a UK passport and full voting rights. As of August 2026, all of the rules above reflect current published GOV.UK guidance.