What Are The Benefits And Costs Of ILR And British Citizenship?

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Dr Bernard Andonian

Dr Bernard Andonian is a highly respected immigration, nationality and human rights lawyer, former Immigration Judge, and recognised expert known for his longstanding experience, academic achievements and contribution to landmark legal decisions.

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Key points

• Indefinite Leave to Remain (ILR) costs £3,029 per person, while British citizenship by naturalisation costs £1,735 in total, including the mandatory ceremony fee.
• ILR grants permanent residence but leaves you as a foreign national; British citizenship confers full civic status, a right to a British passport, and the vote in general elections.
• ILR can lapse if you spend more than two consecutive years outside the UK, whereas citizenship is permanent and unaffected by time spent abroad.
• Children born in the UK to a British citizen are automatically British; children born to ILR holders are not.
• The Government’s proposed “learned settlement” reforms, expected from April 2026, may extend the standard qualifying period for ILR from five years to ten years for most work routes.

The two statuses explained

For anyone in the UK on a work or family visa, the path to long-term security follows a well-established sequence: temporary leave, then settlement, then (optionally) citizenship. The two endpoints of that sequence, Indefinite Leave to Remain (ILR) and British citizenship, provide different benefits and costs.

ILR is granted under section 3(1)(b) of the Immigration Act 1971, which provides that a person may be given leave to remain “for an indefinite period.” It removes time limits on your stay and allows you to work without restriction. You remain, however, a foreign national subject to immigration control.

British citizenship is acquired through naturalisation under section 6 of the British Nationality Act 1981. Once naturalised, you cease to be subject to immigration law altogether. You become a full British national with the same standing as a person born in the UK to British parents.

Eligibility for ILR

Most applicants on a Skilled Worker visa or a spouse/unmarried partner visa qualify for ILR after five years of continuous lawful residence. The core requirements are:

• Valid leave held throughout the qualifying period, with no breaches of immigration law.
• English language proficiency at CEFR B1 level or above.
• A pass in the Life in the UK Test.
• No more than 180 days spent outside the UK in any single 12-month period during the qualifying residence.

Applications are made online, and section 3C of the Immigration Act 1971 protects your lawful status while a decision is pending, provided you applied before your existing leave expired.

Eligibility for British citizenship

Naturalisation under section 6(1) of the British Nationality Act 1981 requires applicants to have held ILR for at least 12 months before applying. Those married to, or in a civil partnership with, a British citizen may apply under section 6(2), which carries a shorter three-year residence requirement and does not impose the 12-month ILR holding period.

The statutory conditions for naturalisation include:

• Age of 18 or above.
• Physical presence in the UK on the date five years before the application (three years for spouses of British citizens).
• No more than 450 days of absence from the UK in the five-year qualifying period, and no more than 90 days in the final 12 months.
• A pass in the Life in the UK Test and English language proficiency at B1.
• Satisfaction of the good character requirement, assessed by the Home Office with reference to criminal history, financial conduct, immigration compliance, and honesty.

Differences Between ILR and British Citizenship

Here are the key differences between ILR and British citizenship:

Immigration Status and Legal Standing

ILR status means you have been granted the right to remain in the UK permanently, but you are still considered a foreign national. You are no longer on a time-restricted visa, but you are not eligible for a British Passport.

In contrast, once you are granted British citizenship, you become a full British citizen under UK law. You are no longer subject to UK immigration rules and have the same legal rights as anyone born in the UK as a citizen.

Risk of Losing Status

This is one of the biggest difference between ILR and British Citizenship.

Article 13 of the Immigration (Leave to Enter and Remain) Order 2000 provides that ILR lapses automatically if the holder remains outside the UK for a continuous period of more than two years. A person whose ILR has lapsed must apply for a Returning Resident Visa from outside the UK, demonstrating strong ties and a justifiable reason for the absence.

British citizenship, once granted, is not affected by time spent abroad. It can only be revoked in narrow circumstances under section 40 of the British Nationality Act 1981: where citizenship was obtained by fraud, false representation, or concealment of a material fact (section 40(3)); or where the Home Secretary is satisfied that deprivation is “conducive to the public good” (section 40(2)). In the latter case, deprivation must not render the person stateless, unless the citizenship was acquired through naturalisation and the person’s conduct is seriously prejudicial to the UK’s vital interests.

Travel Rights and Passport Privileges

An ILR holder travels on the passport of their country of nationality. You may need visas to travel to countries that would otherwise be accessible to British citizens.

On the other hand, British citizenship gives you the right to hold a British passport, which provides visa-free access to over 180 countries. This can make international travel far more convenient. If you apply for a British passport after naturalisation, you’ll have access to one of the world’s most globally recognised travel documents.

Political Rights and Civic Participation

Only British citizens can vote in UK general elections and referenda, stand as a Member of Parliament, or hold certain public roles. ILR holders, while permitted to vote in local and some devolved elections, do not enjoy full political rights.

Employment and Public Roles

ILR allows you to work in the UK indefinitely, but certain government and security roles are restricted to British citizens. These may include roles in the armed forces, police, civil services, and intelligence services.

If your career aspirations include such positions, holding British citizenship is often essential.

Children Born in the UK

If you give birth to a child while holding the ILR, they will not become a citizen automatically. You would need to register the child for citizenship separately.

If you hold citizenship, your children born in the UK will automatically be British citizens, without the need for a separate application.

Anyone approaching their current five-year qualifying period should take professional advice on whether to submit their ILR application before the new rules take effect.

How much does ILR cost?

The cost of applying for ILR inside the UK is £3,226 per applicant. Other costs associated with the application include:

Fee Type	Description	Cost
Biometric Enrolment	Mandatory fingerprinting and photo fee	£19.20
Life in the UK Test	Mandatory test required for settlement	£50
English Language Test	Mandatory if you don’t hold a qualifying degree or an existing certificate	£150 – £200
Immigration Health Surcharge (IHS)	Exempt; ILR holders get free NHS access	£0

A standard application takes up to six months to process. If you want your decision sooner, you can pay a premium for expedited services:

• Priority Service: +£500 (Decision within five working days)
• Super Priority Service: +£1,000 (Decision by the next working day)

How much does British Citizenship cost?

The cost to apply for British Citizenship depends on whether you are applying as an adult or registering a child.

The standard fee for an adult naturalisation application is £1,839. This total includes a £1,709 application processing fee and a mandatory £130 citizenship ceremony fee.

A breakdown of the different government fees and mandatory additional costs outlines what you can expect to pay:

Application Type	Processing Fee	Ceremony Fee	Total Cost
Adult Naturalisation (Standard route/Spouse)	£1,709	£130	£1,839
Adult Registration (Through specific ancestry/provisions)	£1,540	£130	£1,670
Child Registration (Under 18)	£1,000	£0*	£1,000
Adult Registration (Irish Citizens)	£723	£130	£853

*Note: If a child turns 18 while their registration application is being processed, you must pay the £130 ceremony fee at the point of decision.

Other costs include:

• Before or during the application process, most adult applicants also need to pay for the following prerequisites:
• Life in the UK Test: £50. You must book and pass this test online via the official Gov.uk Life in the UK Service before sending your application.
• English Language Exam: Around £150, required if you do not already hold an approved degree or degree taught in English, or if you are not from a majority English-speaking country.

While you must attend a UK Visa and Citizenship Application Services (UKVCAS) appointment to submit your fingerprints and photo, the Home Office does not charge a fee for this standard service.

Deciding between ILR and British Citizenship

Proceeding to citizenship is generally advisable where:

• You intend to travel frequently or live abroad for extended periods, since ILR can lapse but citizenship will not.
• You want full political participation, including the right to vote in UK general elections.
• You plan to have children in the UK and want them to acquire British citizenship automatically at birth.
• You work in, or aspire to, government, security, or intelligence roles that require British nationality.

Remaining at ILR may be appropriate where:

• Your country of origin does not recognise dual nationality, and acquiring British citizenship would require you to renounce your existing nationality.
• You are uncertain about your long-term plans and may wish to return to your home country permanently.
• Cost is a concern and you do not currently need the additional rights that citizenship provides.

One of the advantages of working with the same Immigration Law Solicitor over the lifetime of your visa/ILR/Citizenship is that they can swiftly advise you about the best time to apply for a different residency status.

When Do You Qualify for British Citizenship After ILR?

To apply for British citizenship through naturalisation, you usually need to have held ILR for at least 12 months. This means you can apply once you have lived in the UK legally for at least six years, five years to obtain Indefinite Leave to Remain, and one more year before applying.

There is one exception. The 12-month waiting period does not apply if your spouse or civil partner already holds British citizenship. You can apply for citizenship as soon as your ILR is granted, as long as you meet the other requirements.

To qualify, you must show that:

• You’ve lived in the UK for at least five years before your application
• You currently hold the ILR
• You must have been living in the UK on the same calendar date five years before you submit your application.

Time spent abroad during those five years must not exceed 450 days in total, unless you’re applying through a British spouse or partner route, where the limit drops to 270 days.

In the final year before applying, your total time outside the UK must not go beyond 90 days.

In addition to the residence rules, you must also:

• Pass the Life in the UK test
• Prove your knowledge of English
• Show you are of good character
• Two referees who can confirm your identity

These rules are based on UK immigration law and apply to almost all applicants. If you meet all of them, you can apply online or by post to become a British citizen.

What Documents are Required to Apply for British Citizenship?

When you apply for British citizenship, the Home Office will expect you to provide detailed evidence to prove your identity, your immigration history, and your eligibility under the law.

Here is a list of the main documents you will usually need to submit:

• Your current passport or travel document to confirm your identity and immigration history
• Biometric residence permit (if issued) to confirm you hold indefinite leave to remain
• Evidence of ILR status, such as a letter from the Home Office or an ILR endorsement in a passport
• Proof of residence in the UK, which may include council tax bills, utility bills, tenancy agreements, HMRC letters, or employer letters covering the qualifying period
• Details of time spent outside the UK, including travel dates, destinations, and reasons for trips abroad
• Marriage or civil partnership certificate if you are applying as the partner
• Life in the UK test pass certificate
• English language qualification, unless you are exempt due to age or nationality
• Any previous names or identity documents if your name has changed

You may also be asked for additional evidence depending on your personal circumstances or if your immigration history includes complex issues. All documents must be accurate, and where applicable, official translations must be provided for any non-English documents.

How to Apply for British Citizenship

The application is straightforward if you meet all the requirements and your documents are in order. Most people apply through the online system, but a paper application form is also available in limited circumstances.

Here are the main steps involved:

• Check that you meet the eligibility criteria: Before you begin, confirm that you have held ILR for the required time and meet the residence, good character, English language, and Life in the UK test requirements.
• Apply online: The most efficient way is to apply online through the UK Home Office website. The system will direct you through the mandated documents and declarations. You will also pay your application fee during this stage.
• Book and attend your biometric appointment: You must attend a biometric appointment where your fingerprints and photograph will be taken.
• Wait for a decision: Once your application and biometrics are submitted, the Home Office will review your case. Most decisions take around six months, though complex cases may take longer.

Remember to keep your details accurate and consistent throughout your application. If anything changes during the process, such as your contact details or travel plans, you should inform the Home Office immediately.

The earned settlement proposals

The Government’s May 2025 White Paper, “Restoring Control Over the Immigration System,” proposed fundamental changes to the route to settlement. A public consultation ran until 12 February 2026, and implementation is expected from April 2026. The key proposals include:

• Extending the standard qualifying period for ILR from five years to ten years for most work visa holders.
• A longer 15-year qualifying period for workers in roles below degree level (RQF level 6).
• A points-based “earned settlement” framework, with high earners above £50,270 retaining the five-year timeline and those above £125,140 qualifying after three years.
• A mandatory minimum income requirement of £12,750 in taxable earnings for all ILR applicants.
• Partners of British citizens on Appendix FM routes are expected to retain their current five-year pathway.

Wrapping up

The case for progressing from ILR to citizenship has strengthened as the rules around settlement tighten. Citizenship offers permanence that ILR cannot fully guarantee. For anyone committed to a long-term future in the UK, securing the highest level of status available is a prudent step. Those who hold ILR and meet the requirements for naturalisation should give serious consideration to applying, particularly given the uncertainty surrounding the earned settlement reforms.

FAQs

What is the main difference between ILR and British citizenship?

ILR allows you to live and work in the UK permanently, but you remain a foreign national subject to immigration control. British citizenship makes you a full British national with the right to vote in all elections, hold a British passport, and pass citizenship to children born in the UK.

How much does ILR cost compared to British citizenship in 2026?

The ILR application fee is £3,029 per person. British citizenship by naturalisation costs £1,735 in total (£1,605 application fee plus £130 ceremony fee). Both may involve additional costs for English language tests and the Life in the UK Test.

Can I lose my ILR status?

Yes, ILR lapses automatically if you remain outside the UK for more than two consecutive years. It can also be revoked in cases of criminality, fraud, or where your continued presence is not considered to be in the public interest. British citizenship, by contrast, can only be removed in rare and exceptional circumstances.

Do I need to give up my existing nationality to become a British citizen?

No, the UK permits dual citizenship, and you are not required to renounce your original nationality when you naturalise. You should, however, check the laws of your country of origin, as some countries do not allow their citizens to hold a second nationality.

How will the proposed earned settlement changes affect me?

If enacted from April 2026, the standard qualifying period for ILR will increase from five to ten years for most work visa holders. High earners may still qualify after five years or fewer. Partners of British citizens are expected to keep the current five-year route. The proposals may apply to migrants already in the UK, so anyone nearing the end of their current five-year qualifying period should consider applying promptly.