Indefinite Leave to Remain (ILR), also called settlement or permanent residence, is the immigration status that allows someone who is not a British citizen to live and work in the UK without time limits. Most applicants reach it after five years of continuous lawful residence on a qualifying visa. ILR removes work restrictions, lets you access most public services on the same terms as a citizen, and is normally a prerequisite for naturalisation as a British citizen one year later.
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To apply for ILR or for citizenship, you must pass the Life in the UK test and prove your knowledge of English at CEFR level B1 or above. Both requirements exist to demonstrate that new permanent residents share the country's language and its core values.
The handbook is clear that ILR is not the same as citizenship. ILR holders cannot vote in general elections (apart from qualifying Commonwealth citizens), cannot hold a UK passport, and can lose their status by spending more than two years outside the UK.
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