Immigration Minister Liam Byrne said in a statement that it was essential that migrants wishing to live in the UK permanently recognise that there are responsibilities that go with this.
"Having a good grasp of English is essential in order for them to play a full role in society and properly integrate into our communities.
"It is a sign of our success that the UK's work in this area has attracted considerable interest in other countries. Australia, for example, has recently launched a public consultation to gather views on the possible introduction of a similar system there."
Introducing mandatory tests for applicants wishing to settle in the UK will bring them into line with the requirements for those seeking British nationality.
It will help maximise their contribution to the economy by increasing their job prospects, assist their integration into local communities and generate a greater understanding of the rights and responsibilities that come with living in Britain, the authorities say.
Applicants aged 65 or over or who have a physical or mental impairment may not have to meet the language requirement or the knowledge of Life in the UK requirement. In 2005, there were 217,475 applications for citizenship and 179,120 were granted settlement.


