An increase in application fees for some UK immigration and nationality pathways took place starting on October 4, 2023, according to the UK Home Office. According to the headline, the increases are as follows:
- Increase of up to 15% for work and travel visas
- Increases of up to 20% in family visa, settlement, and citizenship fees
- Increase of up to 35% for student visas
The History of the Fee Rise
The cost to people and businesses has increased considerably since the UK implemented visa and settlement application fees in 2003. The UK government holds the opinion that the expenses of the immigration system should be covered by those who benefit the most from it, such as immigrants themselves and those who sponsor immigrants, including employers.
To this aim, the fees established by the Home Office are more than the actual cost of processing immigration petitions because the money raised is also used to pay for the compliance and enforcement functions that are part of the UK’s overall border control and immigration system.
Health Surcharge for Immigration
The Immigration Health Surcharge will also go up by 66% from £624 to £1,035 annually, according to a proposal from the Home Office. The UK Government hasn’t yet announced when this will go into effect, although it probably won’t be until the beginning of the following year.
Charge for Immigration Skills
The Immigration Skills Charge, which presently costs £364 or $1000 per year for each sponsored immigrant, depending on whether the sponsor is a small or large enterprise, is one piece of good news that isn’t currently planned to be increased.
Fees for Immigration and Nationality
In the table below, some of the most significant fee adjustments that will probably impact employers who sponsor immigrants to work in the UK are listed.
| Application | Current fee | The new fee as of 4 October 2023 | Fee change / Percentage increase |
| Certificate of Sponsorship (“CoS”) – including Skilled Worker and Senior or Specialist Worker | £199 | £239 | £40 / 20% |
| Skilled Worker or Senior or Specialist Worker visa application for three years or less (main applicant and each dependant) | £625 | £719 | £94 / 15% |
| Skilled Worker or Senior or Specialist Worker visa application for more than three years (main applicant and each dependant) | £1,235 | £1,420 | £185 / 15% |
| Skilled Worker or Senior or Specialist Worker in-country extension application for three years or less (main applicant and each dependant) | £719 | £827 | £108 / 15% |
| Skilled Worker or Senior or Specialist Worker in-country extension application for more than three years (main applicant and each dependant) | £1,423 | £1,500 | £77 / 5.4% |
| Indefinite leave to remain based on five years’ sponsored employment in the UK (also known as settlement) | £2,404 | £2,885 | £481 / 20% |
| Naturalization as a British citizen (adult – this is in addition to the Citizenship Ceremony fee of £80) | £1,250 | £1,500 | £250 / 20% |
| Registration as a British citizen (child) | £1,012 | £1,214 | £202 / 20% |
| Priority processing of out-of-country visa applications (non-settlement) | £250 | £500 | £250 / 100% |
If the sponsor is a big-scale employer and the priority service is used, the overall cost, excluding legal fees, of sponsoring a migrant for five years will go up by £475 (from £9,804 to £10,279). In contrast, the overall cost of sponsoring a migrant coming to the UK with a partner and two children will increase by £1780 (from £23,619 to £25,399).
Additional Read: The Departure of More than 500,000 Workers Put the UK Economy in Danger.
Wrapping Up
There is no doubt that these above-inflation fee increases will add to the already significant fee burden placed on employers and migrants to the UK, even though the Home Office claims that all fee changes take into account the overall cost to applicants and employers versus the necessity of generating income to achieve the Home Office’s goal of a “largely self-funded” immigration system.
If these fee increases cause businesses to relocate specialist positions that they are unable to fill from the UK’s domestic labor market to other nations, or if they have the effect of making highly skilled immigrants decide against moving to the UK because they believe the immigration costs to be too high, this could potentially harm the UK’s economic growth.
As a result, sponsoring employers might want to consider the sponsorship’s terms. While it may save on prospective extension application expenses if a CoS is initially issued for the maximum five-year period, doing so does require a sizable up-front investment.
Additionally, the government is getting requests to help create clawback clauses that will be inserted into the employment contracts of sponsored migrants. These clauses will allow employers to recoup all or a portion of the costs associated with paying for the sponsored migrant’s immigration if they quit their job before the sponsorship period ends.
Such words must be carefully drafted to avoid being mistakenly viewed as punishment clauses, rendering them unenforceable. Additionally, it is crucial to know that certain immigration expenses, such as the Immigration Skills Charge, are non-refundable for sponsor license holders.
At Dynamic Staffing Services, we understand that the rising UK immigration fees can seem daunting to both employers and potential candidates. However, we believe that this increase in cost should not deter employers from seeking the right talent to fit their needs. As a recruitment agency, we are committed to providing top-quality services to our clients at extremely affordable prices, and we believe that our expertise and experience can help mitigate the impact of these fee increases.
We are confident that our network of skilled candidates and streamlined recruitment processes can help employers find the right candidate for the job while also ensuring that the UK immigration process is as smooth and stress-free as possible. We are dedicated to providing our clients with personalized and cost-effective solutions, and we will continue to do everything in our power to help them navigate the complex world of immigration fees and regulations.
Ultimately, while the rising UK immigration fees may seem like a challenge, we believe that with the right approach and the right partners, employers can still find the talent they need to succeed in today’s competitive job market.
At Dynamic Staffing Services, we are proud to be that partner, and we look forward to continuing to support our clients in their search for the best and brightest talent. To learn more about our services and how we can help you, call us at +44-7477196844 or email enquiry@dss-hr.co.uk.
Contact us today: Dynamic Staffing Services!
