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LilyLalilu wrote:Yes, unfortunately, the requirement for CSI is not known by many people so sadly a lot of people get caught out by this...
There is one other thing which may work: Did he have a German EHIC when he was doing his PhD (the European Health insurance card, usually at the back of the German Krankenversicherungskarte)?
If so, he can send in a cover letter saying that during his PhD he was only intending to stay temporarily in the UK and that his plans changed once he started working. In those cases, the EHIC card can replace the CSI)
If this does not work, he would acquire PR after 5 years of working in the UK (i.e. Oct 2016), and you could then register your daughter as a British Citizen using form MN1.
But if he had a European Health insurance card issued by the German authorities, I'd try and send off your daughter's passport application along with the cover letter (and all the other paperwork) and just see if it works (it should normally be fine, worst case you'd lose the application fee...)
Good luck!