Government planning significant increases to immigration fees

Earlier this year, the government announced plans to increase immigration fees to ensure a sustainable and efficient immigration and nationality system. It was also suggested that the significant rise in certain visa fees would help to fund public sector pay increases.

Following parliamentary approval of the proposals, the fee increases came into effect on Wednesday 4 October 2023.

Changes include:

  • Work and visit visa fees have increased by 15% with other costs including student visas and certificates of sponsorship increasing by 20% or more. Full details of the changes are available from the Home Office.
  • In practice, this means that Skilled Worker visas will now cost between £719 and £1,500 per person, while discounted shortage occupation rates have increased to between £551 and £1,084.
  • Certificates of Sponsorship for workers on the Skilled Worker and Global Business Mobility routes have increased to £239 from £199 per person.
  • The fee to apply for a student visa from outside the UK is now £490, up from £127.

Immigration Minister, Robert Jenrick, also confirmed plans to remove fees for admin functions such as biometric enrolment, change of conditions and replacing biometric residence permits.

This news will come as a shock to job seekers and employers alike. The UK already has some of the highest fees when compared to EU states and the proposed changes may leave businesses fighting the war for talent with one arm tied behind their backs.

Later this year, the Immigration Health Surcharge, payable to access the NHS, will almost double to £1,035 per year per person. Discounted rates payable in certain situations will also increase, rising to £776 per year.

How should business react?

Employers who hold a sponsor licence should immediately consider how these changes may impact on their recruitment budgets and whether to include ‘claw back’ provisions in contracts of employment where they do cover immigration costs for new hires.

For more information please contact Rob Tubman, Associate or your usual Corporate Immigration team contact.

Date published: 5 October 2023.