UK visa fee increases and the effects it has on employers
by Darren Faife | Sep 27, 2023
Following the Home Office's announcement of visa fee increases in July this year, last week saw official confirmation of the new costs businesses and sponsored workers will face from 4 October 2023.
In July, the UK government announced that headline fees would increase by 15%, family visa, settlement and citizenship fees by 20%, and Student visa fees by 35%. The Home Office has now confirmed that the fee increases will take effect from 4 October 2023.
Reasons for the UK visa fee increase
Historically, the philosophy behind fees was to charge enough to cover the administrative costs of processing an application. In the early 2000s, the government began charging fees over and above processing costs to fund broader immigration activities, such as the appeals system and enforcement.
Today's policy is that fees should fund as much of the immigration and border system as possible, which means that application fees are no longer limited by processing costs; these costs are just one of several factors that the Home Secretary can take into account when setting fees.
The reason stated for the new fee increases are “to pay for vital services and allow more funding to be prioritised for the public sector.”
The Immigration Health Surcharge (IHS) will also see a major increase of 66% in the next few months. At the time this increase was announced, the government stated it was to help the government raise funds for public sector wage increases.
At this stage, there are no increases to sponsor licence applications or the Immigration Skills Charge.
Impact the visa fee increase will have on employers
Following the UK‘s exit from the European Union, the country is experiencing a severe shortage of skilled employees, due to the dwindling pool of readily available EU workers. There are currently openings in the majority of economic sectors, including 42,000 in construction, 60,000 in transportation, 170,000 in food and lodging, and 200,000 in care.
According to a Royal Society report in 2021, UK Skilled Worker visa costs were already much higher than in many other attractive countries like Canada and the USA. Additionally, this increase in fees is significantly above inflation.
These fee increases will provide another hurdle for UK employers trying to attract overseas talent.
New UK visa fees
| UK visa | Current fee | Fee from 4 October 2023 | Fee increase | % Change |
|---|---|---|---|---|
Certificate of Sponsorship (CoS):
| £ 199 | £ 239 | £ 40 | 20% |
| Skilled Worker, where a certificate of sponsorship has been issued for three years or less – main applicant and dependants | £625 | £719 | £94 | 15% |
| Skilled Worker, where a certificate of sponsorship has been issued for over three years – main applicant and dependants | £1,235 | £1,420 | £185 | 15% |
| Skilled Worker, shortage occupation where a certificate of sponsorship has been issued for three years or less– main applicant and dependants | £479 | £551 | £72 | 15% |
| Skilled Worker, shortage occupation where a certificate of sponsorship has been issued for over three years – main applicant and dependants | £943 | £1,084 | £141 | 15% |
| Skilled Worker, shortage occupation - Health and Care visa, where a certificate of sponsorship has been issued for three years or less – main applicant and dependants | £247 | £284 | £37 | 15% |
| Skilled Worker, shortage occupation, Health and Care visa, where a certificate of sponsorship has been issued for over three years – main applicant and dependants | £479 | £551 | £72 | 15% |
| Global Business Mobility: Senior or Specialist Worker, up to three years – main applicant and dependants | £625 | £719 | £94 | 15% |
| Global Business Mobility: Senior or Specialist Worker - more than three years – main applicant and dependants | £1,235 | £1,420 | £185 | 15% |
| Global Business Mobility: Graduate Trainee – main applicant and dependants | £259 | £298 | £39 | 15% |
| Global Business Mobility: Service Supplier – main applicant and dependants | £259 | £298 | £39 | 15% |
| Global Business Mobility: UK Expansion Worker – main applicant and dependants | £259 | £298 | £39 | 15% |
| Global Business Mobility: Secondment Worker – main applicant and dependants | £259 | £298 | £39 | 15% |
| Scale-up – main applicant and dependants | £715 | £822 | £107 | 15% |
| Indefinite leave to remain – main applicant and dependants | £2,404 | £2,885 | £481 | 20% |
It’s now more important than ever to ensure you and your employees get your applications right the first time as mistakes can be even more costly if you have to resubmit after the increase.
Our Business Immigration team will seamlessly guide you through every step of your sponsorship journey. We provide a service to both employers and employees including applications for the employer's sponsorship licence, Certificates of Sponsorship (CoS) for the employee, along with visa application assistance for the employee – whether they are applying from the UK or overseas.
We help individuals and businesses navigate all aspects of UK immigration and can assist with ongoing employee immigration management. Contact us at +44 (0) 20 7759 5307 or email workpermits@sableinternational.com.
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