hello karen, since the end of nov last year, those applying for flr in the uk need to have passed an english language test, and you applied without sending it, so thats why they refused you FLR.
as you have lived together since 2007, you might have been able to apply for an unmarried partner visa but as you married in 2010 its too late now..
yes they are probably right to refuse you, you must have read on the flr form about the english language test ? you sent an invalid application by not sending it..
no they didn't refuse you because you could have applied for ILR using your work permit, they refused you because of your invalid app (not sending the English language pass cert)
does your husband have British and Irish passports ?
when does your work permit expire ?
