Sponsor Licence Update: Sponsor Skilled Worker Visa Applicants Before the 16 January 2024 – Date for the Immigration Health Surcharge Increase

Our immigration solicitors warned their sponsor licence business clients that the government was planning to significantly increase immigration fees. Thankfully the government did not increase sponsor licence application fees but Sponsorship Licence lawyers now have a provisional date for the increase in the immigration health surcharge. It’s the 16 January 2024.

UK Online and London-Based Immigration Solicitors and Sponsorship Licence Lawyers

For sponsor licences and work visas call OTS Solicitors on 0203 959 9123 or contact us online.

The immigration health surcharge increase

The immigration health surcharge is currently £624 per year for work visa applicants and their dependant partners coming to the UK on Dependant Visas. On 16 January 2024, it is due to rise to £1,035 a year.

On the same date, the immigration health surcharge for children applying for Dependant Visas to accompany a parent working in the UK will increase from £470 per year to £776 per year.

The changes are being brought in under the Immigration (Health Charge) (Amendment) Order 2023. The draft order refers to the increase date as 16 January  2024 or a date to be notified but Sponsorship Licence lawyers are working on the basis that the government is likely to bring in the increased charges on or shortly after 16 January 2024.

What does the increase in the immigration health surcharge mean for job applicants?

If you are a single job applicant from overseas who is planning to come to the UK on a 3-year Skilled Worker Visa the current upfront immigration health surcharge is £1,872. In January  2024 it will increase to £3,105, an increase of £1,233 for the 3-year visa.

If you are a job applicant with a partner and 2 children the current immigration health surcharge fees for the Skilled Worker Visa and Dependant Visas amount to £6,564. From January  2024 the sponsored worker will need to find £10,866, an increase of £4,302 for the 4 visas for 3 years duration.

Remember that on top of these immigration health surcharge fees a job applicant will also need to pay their visa fees and pay for flights.

These immigration health surcharge figures are compelling so do not be surprised if your HR department receives a flurry of enquiries about bringing forward employment start dates for Skilled Worker Visa applicants.

Sponsor skilled overseas workers before 16 January 2024

If you are a business with a sponsor licence you may question why you need to hurry along your plans to sponsor a worker on a Skilled Worker Visa or the Global Business Mobility Visa route. After all, the job applicant is responsible for paying the immigration health surcharge because your business is only under an obligation to pay for the sponsor licence, the certificate of sponsorship and the immigration skills charge. Sponsorship Licence lawyers say that whilst this is correct there are a few points to consider:

1. With job applicants needing to find extra money upfront to pay the immigration health surcharge they may take the view that a move to the UK for work is only justified if the salary is higher than currently offered
2. Current sponsored employees may look for a wage rise when they apply for an extension to their Work Permit Visa and they realise that the immigration health surcharge increase means it is harder for them to pay their rent and other bills
3. Many sponsor licence holders voluntarily pay the immigration health surcharge on behalf of job applicants as part of a golden hello. This is especially true in sectors where the UK skills gap is particularly problematic. With the hike in the immigration health surcharge, the best overseas job candidates may be more tempted to take the sponsored job offer that comes with the sponsoring employer agreeing to pay the immigration health surcharge on their behalf
4. If your business is one of those companies that pays the immigration health surcharge on behalf of overseas job applicants it is in your interests to sponsor employees before the immigration health surcharge fees increase. It may also be best to sponsor the worker for as long as possible so you pay the immigration health surcharge at a lower amount. That is only appropriate if the job is long term and you anticipate that otherwise the worker would be applying to extend their work visa and your business would be paying the increased immigration health surcharge at the time of their visa extension application
5. Overseas job applicants may be unwilling to follow through on job applications when they understand that they will need to pay the increased immigration health surcharge upfront for the length of their visa. Some job applicants may take up offers of jobs outside the UK where there is no immigration health surcharge payable
6. If an overseas job applicant has a family consisting of a partner and children then they will all require Dependant Visas to come to the UK. The upfront cost of the immigration health surcharge for a family of 4 may deter the best overseas job applicants from applying for a post
7. If your business pays the immigration health surcharge on behalf of employees you may need to review your employment contracts to check if they include clawback provisions for the repayment of the immigration health surcharge if the sponsored employee leaves your employment before the end date on their visa. That’s because, with the increase in immigration health surcharge fees, your business may not be willing to take a relaxed approach to clawback provisions

Proactive business immigration legal advice

At OTS Solicitors our Sponsorship Licence lawyers are proactive. We aim to anticipate immigration and sponsor licence management issues before they become problems for your business. We can help with all your sponsor licence needs including:

• Pre-application sponsor licence advice
• Pre-application sponsor licence audits
• Sponsor licence training adapted to the needs of your business and its key personnel
• Sponsor licence applications
• Sponsor licence problem-solving to reduce the risk of your sponsor licence being downgraded or suspended
• Annual check-up sponsor licence audits
• Sponsor licence renewal applications
• Sponsor licence management services on a fixed fee monthly retainer

Hans Sok Appadu is head of the business immigration team at OTS Solicitors. He is a recommended and ranked business immigration lawyer in the 2024 edition of the Chambers Guide to the Legal Profession.

Our Sponsorship Licence lawyers pride themselves on being approachable and offering advice you can understand and act on. We are lawyers who mean business and understand that you don’t want to be bamboozled with legal jargon. Your time is as important as our time. That’s why we look at business immigration from the perspective of how it will affect you and your company. If that sounds like the type of Sponsorship Licence lawyers you want to work with then give us a no-obligation call.

UK Online and London-Based Immigration Solicitors and Sponsorship Licence Lawyers

For sponsor licences and work visas call OTS Solicitors on 0203 959 9123 or contact us online.

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