Overseas Healthcare Workers – the Cost of Sponsorship
It is all very well for the UK government to include some adult healthcare jobs as falling within eligibility for the health and care worker visa but adult and social healthcare businesses need to grapple with whether it makes financial sense to apply for a sponsor licence to recruit healthcare workers from overseas. Immigration solicitors understand that it all comes down to the ‘bottom line’.
In this article, our business immigration lawyers assess the costs of sponsorship for UK healthcare businesses.
UK Online and London-Based Immigration Solicitors and Sponsorship Licence Lawyers
For advice on sponsor licences call the expert London immigration lawyers at OTS Solicitors on 0203 959 9123 or contact us online.
The healthcare visa
The health and care worker visa forms part of the skilled worker visa but the UK health care recruitment crisis meant separate immigration rules apply to UK businesses who sponsor relevant overseas health care professionals.
Since the introduction of the health and care worker visa, the government has made changes to the immigration rules providing for additional healthcare jobs to fall within the ambit of the health visa. The visa is wide enough to include doctors and nurses as well as roles in adult and social care such as care workers, home carers, care assistants and support workers.
Many businesses in the adult and social care sector are understandably concerned about the costs of sponsoring healthcare workers when sector margins are tight. Sponsorship Licence lawyers say that the costs are manageable so sponsoring a migrant worker on a health and care worker visa is an option to consider given the ongoing UK recruitment challenges and the pressing need for additional health care staff.
Paying health care staff on the health and care worker visa
Each healthcare job that qualifies for the health and care worker visa has its own standard occupational classification code and minimum salary threshold or the going rate for that particular job role.
The April 2023 minimum salary threshold for the health and care worker visa is £20,960 gross per year or £10.75 gross per hour or the going rate for the job, whichever is the higher.
The rates are national. There are no regional variations or weightings for London-based healthcare workers.
Sponsor licence application fees
Sponsorship Licence lawyers say the sponsor licence application fee may appear substantial but once paid, and the licence is granted, it remains valid for 4 years without annual renewal fees.
If a business falls within the definition of a small sponsor (or has charitable status) the sponsor licence fee is £536 for the 4 years, so equating to a fairly modest circa £108 for each year.
For large or medium size businesses the sponsor licence fee is £1,476 for the 4 years.
Certificate of sponsorship fees
Although the sponsor licence application fee is a set figure no matter how many overseas workers your business intends to sponsor, there is also a separate fee payable for each sponsorship through the allocation of a certificate of sponsorship. The fee is £199 per certificate. The amount doesn’t depend on the size of the business or if you fall within the small or large category of sponsoring employer.
The immigration skills charge
The immigration skills charge is payable by the employer for each sponsored worker. If your business is classed as a small or charitable status employer the charge is £364 for the first year of the visa and £182 for each additional 6-month period. The fees are not apportioned to less than 6 months. For large employers, the immigration skills charge is calculated at £1,000 for the first visa year and £500 for each additional 6-month period.
For small healthcare businesses, it is worth noting that the full immigration skills charge has to be paid upfront so this can affect cash flow. A 3-year visa applicant will need their small-sized employer to pay £1,092 in immigration skills charge fees and a medium or large employer £3,000 in administrative fees.
Priority services
In addition to the standard sponsor licence application and recruitment fees, a business can choose to pay for priority services from the Home Office to obtain a quicker decision. Sponsorship Licence lawyers can help a business understand whether paying a priority application fee is the best option for them.
Sponsor licence management costs
In addition to the sponsor licence application costs, there are hidden costs of complying with the sponsor licence reporting and recording duties. These duties must be complied with as if they are not the sponsor licence may be suspended or revoked.
The costs involve the salaries of key personnel. The key personnel may be existing employees of the sponsoring employer but whose work time will be taken up in sponsor licence management rather than their usual chores, potentially resulting in the need for additional HR or administrative staff.
Alternatively, Sponsorship Licence lawyers can provide a sponsor licence management service through a fixed monthly retainer so healthcare businesses can budget for these management costs.
Health and care worker visa application fees
Although sponsor licence and immigration skills charge fees can't be passed onto the visa applicant to pay the worker can be asked to pay their visa application fee. However, the health and care worker visa application fee is reduced in comparison to the standard skilled worker visa fee.
For a 3-year health and care worker visa the application fee is £247. For visas of over 3 years duration, the fee is £479. The fees are the same amount whether or not the sponsored job has a relatively low or high minimum salary threshold. If an employer wants to do so they can pay the visa application fee instead of the new employee.
The positive news is that health and care worker visa applicants (and their family members applying for dependant visas) are exempt from paying the immigration health surcharge.
Maintenance funds for health and care worker visa applicants
To qualify for a health and care worker visa an applicant must show that they have maintenance funds of at least £1,270. This will be impossible for some visa applicants or will delay their recruitment and start date. Therefore, when allocating the certificate of sponsorship, a sponsoring employer can certify that they will provide maintenance funds if necessary.
Sponsorship Licence lawyers
Our Sponsorship Licence lawyers say that speaking to an expert about what is involved in the sponsor licence application process and getting the expert help you need can give small and medium-sized healthcare businesses the confidence to apply for their first sponsor licence and to understand the cost and employment law implications of recruiting skilled workers from overseas.
UK Online and London-Based Immigration Solicitors and Sponsorship Licence Lawyers
For advice on sponsor licences call the expert London immigration lawyers at OTS Solicitors on 0203 959 9123 or contact us online.
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