You should take the test if you are applying for naturalisation as a British citizen and your level of English is ESOL Entry 3 or above. If your level of English is lower than ESOL Entry 3 and you wish to apply for naturalisation, you will need to attend combined English language (ESOL) and citizenship classes instead. Most local further education or community colleges run these courses.
As of Monday, 02 April 2007, anyone wishing to live permanently in the United Kingdom - otherwise known as Indefinite Leave to Remain (ILR) - will be required to take a test that assesses their knowledge of British life and culture. They will also be required to have proficient knowledge of the English language.
A potential permanent resident will be required to gain an English for Speakers of Other Languages qualification if they do not meet the requisite level of English language ability. If the potential permanent resident has sufficient knowledge of the language, the can skip ahead to the test of British values, society, and culture.
Called "Life in the UK", the test is designed to encourage people to learn English and such subjects as British law, democratic processes, and traditions. The hope is that migrants will fully integrate themselves into British society earlier, before becoming full citizens.
Previously, the Life in the UK test had only been a requirement for gaining British citizenship. People applying for naturalization also must take the test.
If you are unsure about whether you need to take the test, you can contact the Immigration and Nationality Enquiry Bureau on 0870 606 7766.