Is it better to apply for citizenship with PR or settled status?

Since the Brexit transition period ended on 31 December 2020, EEA PR cards no longer give a route to apply for citizenship. Instead you first have to obtain settled status (indefinite leave to remain) before you can apply for British citizenship.

You need to wait 12 months from the settled status decision date unless you are married or in a civil partnership with a British citizen, regardless of how long you have been in the UK. Settled status only proves you are lawfully resident from the date settled status is granted. Therefore the Home Office will still look at periods before the date your settled status was granted to check that your residence was lawful, and this will include checking if you had CSI (Comprehensive Sickness Insurance) during any periods where you were self-sufficient or a student.