The Cost of Sponsoring Overseas Workers is to Rise
It is no surprise to UK Immigration Lawyers that the government plans to hike up sponsorship costs but the planned increase to the price of a certificate of sponsorship is a massive 110%.
Our Sponsorship Licence Lawyers examine the planned changes to the sponsor fees.
UK Online and London-Based Immigration Solicitors and Sponsorship Licence Lawyers
For sponsor licence application, management and licence advice call OTS Solicitors on 0203 959 9123 or contact us online.
The planned increase to the certificate of sponsorship
The government plans to increase the cost of a certificate of sponsorship from £239 per certificate to £525.
The fee rises are contained in the Immigration and Nationality (Fees) (Amendment) Order 2025. The fee increases won't come into effect until the Order gets approval. However, the government has said it wants to put the fee rises in place as soon as possible.
According to the Home Office announcement the planned increase in immigration fees (including changes to nationality and ETA fees) could generate as much as an extra £269 million a year. The government estimates that in 2025-6 around £111 million of the £269 million will come from the increase in certificate of sponsorship fees.
The further rationale behind the decision to increase the cost of a certificate of sponsorship is to deter UK employers from a perceived overreliance on Skilled Worker Visa holders rather than employers recruiting British or settled workers.
The headline figure of an extra £111 million in Home Office coffers from a rise in the certificate of sponsorship fees does not mention the potential inflationary pressures that may come about if UK business owners decide to pass on the increased sponsorship costs to their customers by raising the price of their products and services.
Employers cannot recoup the certificate of sponsorship fee from employees
With the planned 110% increase to the cost of a certificate of sponsorship, sponsor licence holders are asking London Immigration Lawyers if they can pass on the cost to their sponsored recruits rather than increase UK inflation by putting up the price of their goods and services. The option of recruiting from within the UK is currently seen as a non-starter by most companies with sponsor licences as they only obtained a licence as they had tried and failed to recruit from within the UK.
Any business that tries to pass on the cost of a certificate of sponsorship to its sponsored recruit risks the revocation of its sponsor licence. That’s because in the updated December 2024 Guidance the Home Office included as a ground for licence revocation:
‘’You assign a Certificate of Sponsorship to a Skilled Worker on or after 31 December 2024 and you have asked that worker to pay some or all of the charge for it, or you have recouped, or attempted to recoup, some or all of the charge for it from them’’.
This is not a mandatory ground for revocation but Sponsorship Licence Lawyers anticipate that it will be hard to persuade the Home Office to exercise discretion unless there is a particularly compelling case to argue.
Sponsorship Licence Lawyer's recommendations and help
If your business is planning to sponsor several workers on Skilled Worker Visas it may be sensible to allocate their certificates of sponsorship before the increases are brought into force. That may not be realistic if it involves bringing forward start dates.
Employers also need to review their HR and recruitment policies and employment contracts to check that all their documents are compliant with the updated sponsor licence Guidance.
In addition, with a view to cost savings, employers may want to look at the cost of in-house sponsor licence administration compared to a fully professional Sponsor Licence Management Service provided by OTS Solicitors. Some businesses (large and small) have recognised that outsourcing this function is cheaper and more efficient than in-house provision as well as reducing the risk of sponsor licence suspension or revocation.
Our Sponsor Management Solicitors are happy to talk to your business about the services we provide, including:
- Immigration Law Training
- Mock audits and audits before prearranged Home Office visits
- Advice to key personnel on their roles
- Certificate of sponsorship allocation
- Representations to the Home Office if a sponsor licence is being investigated and is at risk of suspension or revocation
- Advising on sponsor licence case plans
- Challenging a suspension or revocation
- Making the case for a reduced cooling-off period
Our Legal 500 recommended proactive Immigration Solicitors in London can advise your business on all its sponsor licence needs.
UK Online and London-Based Immigration Solicitors and Sponsorship Licence Lawyers
For sponsor licence advice management and Work Visa advice call OTS Solicitors on 0203 959 9123 or contact us online.
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