Government Fee Increases
As announced in July, the increases to Government fees for immigration and nationality applications came into force on 4 October 2023. Most fees were increased by around 15% or 20%, with some more and some less, and others unaffected (for now).
All of the working visa category application fees were increased, including most priority services, appointment centre user fees and visit routes, as well as settlement and nationality fees. The fees associated with Sponsor Licences were unaffected, as were endorsement fees and in-country student routes fees (but out-of-country student application fees went up 35%).
Some notable increases were:
Certificate of Sponsorship fee now £239 (up from £199) – a 15% rise
Skilled Worker / Global Business Mobility up 15% to £827 (up from £719 – leave to remain) / £719 (up from £625 – entry clearance) for three years stay
Skilled Worker / Global Business Mobility up 15% to £1,500 (up from £1,423 – leave to remain) / £1,420 (up from £1,235 – entry clearance) for over three years stay
Indefinite Leave to Remain increased to £2,885, up from £2,404, a 20% increase
Naturalisation (as a British citizen) now £1,500, up from £1,250, another 20% increase
Immigration Health Surcharge
The Government has also laid before Parliament the Immigration (Health Charge) (Amendment) Order 2023 to facilitate the planned increase to the Immigration Health Surcharge (“IHS”). This is the annual fee which most visa applicants have to pay at the same time as the rest of the fees.
It was originally introduced in 2015 to much protest but at the relatively low amount of £200 a year. Now we know it will be £1,035 per year, up from the current £624, an increase of 66% (or, a 500+% increase from 2015). The reduced rate for children, Youth Mobility applicants, and students will increase to £776 per year (up from £470).
The Order states the IHS will be increased from 16 January 2024 or later, and it must be approved by both Houses of Parliament first before it can become a Statutory Instrument and law. Therefore, there is still time for employers to save on the increased cost and submit applications wherever possible prior to that date.
More Costs for UK Employers
The consequence is that for UK employers, from mid-January 2024, the costs to hire overseas workers who need sponsorship will have gone up on average £2k-£2.5k for a five-year visa. If considering the cost of an Indefinite Leave to Remain application as well, at the conclusion of those five years, the total cost for one person is now in the region of £14k-£15k. This is before any dependant family members, biometrics appointment fees, priority services, or lawyer fees are added.
With the Prime Minister, Rishi Sunak, initially stating that immigration fee increases were needed in order to fund pay increase for public sector workers (which has not been repeated and has not made it into any official announcements since), how will UK employers feel with yet another squeeze on their resources? Some employers are caught between a rock and a hard place with these increases and the inability to recruit from the local labour market forcing them to look at overseas applicants.
This article is not intended to be used as legal advice. Should any of these updates be relevant to you, please seek expert legal advice from a regulated immigration practitioner. You can send us an enquiry to immigration@laytons.com.