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In my personal situation, as the lead applicant I have got Indefinite Leave to Remain.
But my dependents (wife and 2 kids) have got dependent visa which is valid until 31-12-2024.
And they will complete 5 years of stay in the UK in September 2022.
My question is,
1. "Can they apply for ILR after completing 5 years of stay in the UK?"
2. "Is there a rule that they have to wait until 28 days before expiry of their current PBS dependent visa to apply for ILR?"

1. Yes, if they meet the requirements.

2. There is no such rule. They can apply no sooner than within 28 days before reaching 5 years OR the latest by the date their visas expire.

Thanks a lot,

There is one more question:
1. My first child was born outside the UK (in India). Does this child will need to apply for ILR before applying for British citizenship? Can they be added directly to the lead applicant's (which is me in this case) British citizenship application as a dependent (as they already are living in the UK as PBS dependent)?

2. My second child was born in the UK and has been on PBS dependent visa till date. I wanted to check the eligibility of this child to apply for British citizenship; given that the lead applicant (i.e. me) has ILR. I have learnt that if the child was born in the UK, they could have lived in the country without any PBS dependent visa (on home country passport, i.e. India in this case). But since the child has this PBS dependent visa; they are under immigration laws and until they don't have ILR; they cannot apply for British citizenship (irrespective of their birth in the UK). Is it correct information? Or can this child apply for British citizenship along with (lead applicant) my British citizenship application.

1. My first child was born outside the UK (in India). Does this child will need to apply for ILR before applying for British citizenship? Can they be added directly to the lead applicant's (which is me in this case) British citizenship application as a dependent (as they already are living in the UK as PBS dependent)?

Children born abroad require ILR first.

2. My second child was born in the UK and has been on PBS dependent visa till date. I wanted to check the eligibility of this child to apply for British citizenship; given that the lead applicant (i.e. me) has ILR. I have learnt that if the child was born in the UK, they could have lived in the country without any PBS dependent visa (on home country passport, i.e. India in this case). But since the child has this PBS dependent visa; they are under immigration laws and until they don't have ILR; they cannot apply for British citizenship (irrespective of their birth in the UK). Is it correct information? Or can this child apply for British citizenship along with (lead applicant) my British citizenship application.

Children born in the UK have an entitlement to register as British once either parent has ILR. Children born within the UK do not need a valid visa or ILR to be able to apply for citizenship.

thanks a lot

There is one more question,

Given that the dependents have a long visa left, if they apply for ILR (later this year). Can they request for refund of the extra fees paid for PBS dependent visa? Is there a provision for adjusting previously paid fee?

Can they request for refund of the extra fees paid for PBS dependent visa? Is there a provision for adjusting previously paid fee?

No and no.