2 Answers

Seems it does but there are options.

A number of changes to the Immigration Rules come into effect on 9 July 2012. These changes will affect non-European Economic Area (non-EEA) nationals applying to enter or remain in the UK under the family migration route.
These changes will define the basis on which a person can enter or remain in the UK on the basis of their family or private life, unifying consideration under the rules and Article 8 of the European Convention on Human Rights.
If you already have leave to enter or remain in the UK, on the basis of being the spouse or partner of a settled person, you will need to meet the rules which were in force before 9 July 2012 if you apply for settlement.
The changes include:
* introducing a new minimum income threshold of £18,600 for sponsoring the settlement in the UK of a spouse or partner, or fiancé(e) or proposed civil partner of non-European Economic Area (EEA) nationality, with a higher threshold for any children also sponsored; £22,400 for one child and an additional £2,400 for each further child;
* extending the minimum probationary period for settlement for non-EEA spouses and partners from two years to five years, to test the genuineness of the relationship;
* abolishing immediate settlement for the migrant spouses and partner where a couple have been living together overseas for at least 4 years, and requiring them to complete a 5 year probationary period;
* from October 2013, requiring all applicants for settlement to pass the Life in the UK Test and present an English language speaking and listening qualification at B1 level or above of the Common European Framework of Reference for Languages unless they are exempt; and
Detailed information about changes to the family migration rules that came into effect on 9 July 2012 can be found on the UK Border Agency website at:
http://www.ukba.homeoffice.gov.uk/siteco...
Detailed information about how you can apply to remain in the UK if you are the partner, dependent child or adult dependent relative of a British citizen, a person who is settled, has refugee leave or humanitarian protection here can be found on the UK Border Agency website at:
http://www.ukba.homeoffice.gov.uk/visas-...
You will be required to prove your English language ability, if you are applying as the husband, wife or civil partner of a British citizen or someone who is settled here.
This information is based on Part 8 of the Immigration Rules.
For details of the English language requirement, see the English language requirement page.

For further information, please visit the UK Border Agency website at:

http://www.ukba.homeoffice.gov.uk/siteco...

I can't say for certain as I do not live in the UK but considering it's a permit to be in the UK until the stamped date, then I personally would assume after the date stamped anyone still in the country with this permit would now be there illegally.