If anyone here is planning on applying for permanent residency and/or citizenship (once you're eligible) here's a tip for you. I'm coming up on my eligibility right now, and just found out you have to pass a test even for just the permanent residency.
Here's the government-recommended study book:
Life in the United Kingdom - A Journey to Citizenship.
The good news is, it's not a bad read. You only have to study the middle chapters, the first and last chapter are informational only, but very interesting anyway.
More good news, if you're studying for your permanent residency, but hope to become a citizen at some later point, it's the same test, using the same study material.
I'm still waiting to find out if you can use one test for both. I do know the test does not expire, so even if you take it two years before your visa runs out, it will be applicable when the time comes. But as they give different questions from the book to each person, you might have to take a second test for citizenship. Let's hope not though! I'll let you know when I find out.
Happy studying!