Immigration Fees – more expenses on the horizon

The UK government is considering increasing the cost of certain immigration products and services with a view to reducing taxpayer funding of border control systems. If implemented, they could have a significant impact on businesses who regularly recruit skilled migrant workers.

ETA and CoS are among those that could see a price rise.

ETAs have only been operational for non-European nationals since 8th January, so the almost immediate 60% uplift suggests that the Home Office is having second thoughts about the initial price point. European nationals will require an ETA from April 2025.

CoS are an essential requirement for sponsoring migrant workers and were last increased in 2023.

Current

ETA £10

CoS £239

Proposed

ETA £16

CoS £525

While there is no obligation to cover the cost of an ETA, the increase in CoS fee will directly impact employers seeking to sponsor migrant talent under the Skilled Worker visa route.

The Home Office recently updated its guidance for sponsors to confirm that employers cannot pass on the cost of assigning a CoS to employees from 31st December 2024 onwards. This was considered a grey area until now, as previous guidance only prohibited recouping the Immigration Skills Charge (where applicable).

If the proposals are approved, the administrative cost of assigning a 5-year CoS will increase to a maximum of £5525. When factoring in that many employers will also cover visa application and relocation costs, the upfront cost for business is significant before the individual even commences work.

The changes still need to pass both the House of Commons and the Lords but given the direction of travel from successive governments and the suggestion that price rises could generate an additional £269m a year, it is likely the new fee structure will be implemented as soon as Parliament can do so.

Top tips for business

• Encourage staff to apply for an ETA as soon as possible. They are valid for two years once approved.
• Review budgets for existing or planned recruitment under the Skilled Worker route.
• Be mindful of what can and cannot be recouped when covering costs on behalf of an applicant. It is possible to put claw back or loan arrangements in place, but these must be very clearly drafted.

More changes are expected in 2025 as the UK’s ‘digital by design’ immigration system beds in. Please contact our Corporate Immigration team for more information.

Date published: 17 January 2025