UK Government announces significant immigration fee rises
17 July 2023
On 13 July 2023, the Government confirmed a raft of immigration fee rises which will place a significant additional cost burden on sponsors and individuals. Although the implementation date has not been announced yet, employers should consider making visa applications early where possible and reviewing budgets and policies for their recruitment and HR.
The headlines are that:
- Work and visit visa fees will rise by 15%;
- Student visa, certificate of sponsorship, settlement, citizenship, wider entry clearance, permission to stay and priority services will rise by at least 20%;
- Student visa fees and those for priority services will be equalised so that the fee is the same for entry clearance and permission to stay (we have assumed the higher current fee as the baseline in our detailed tables below); and
- The main Immigration Health Surcharge rate will rise to GBP 1,035, with the lower rate for students and applicants under 18 rising to GBP 776.
The additional revenue generated from the new fees is estimated by Government to be in excess of a billion pounds and is intended to contribute to funding pay increases for public sector workers. A full impact assessment has not yet been published.
What are some of the impacts for employers?
Immigration fees have not increased significantly since April 2018 and the magnitude of the announced rises is substantial. Aside from the obvious increased direct costs of sponsoring a worker the following consequences may flow for employers:
- Decisions to allow vacancies to remain unfilled – this may have the most significant impact in the health and care sectors as these are the heaviest users of the Skilled Worker route currently;
- Deferral or cancellation of moves to the UK for hired workers;
- Increased lobbying from employers for occupations to be added to the shortage occupation list, as this provides access to discounted immigration fees;
- Increased use of immigration fee clawback agreements;
- Requests for financial assistance from existing employees who will be responsible for paying their own immigration-related fees;
- Increased business continuity and right to work compliance issues where an existing employee fails to extend their immigration permission due to unaffordability; and
- Deferral or discontinuation of individuals’ plans to obtain British citizenship, due to unaffordability.
There may also be an impact on decisions about workers taking up long-term overseas assignments if doing so may lead to additional cost before settlement is available, or if there is a risk that settled status may be lost due to an absence from the UK of two years or more. Provision may need to be made to ensure return travel to the UK is arranged during the assignment period to avoid existing limited or settled immigration permission lapsing.
When will the rises take effect?
No announcement has yet been made on when the fees will be increased. Immigration fees regulations are normally laid before Parliament at least 21 days before they take effect, however this is a convention that can be departed from with justification.
Employers should consider the short and longer-term budgetary impact of the rises and aim to submit upcoming applications as early as possible to minimise immediate costs.
Fee rises in detail
Here are some examples of uplifts announced:
| Fee type | Percentage increase |
Current fee (GBP) | New fee (GBP) |
| Certificate of Sponsorship (CoS) for Skilled Workers or Senior or Specialist Workers | At least 20% | 199 | 239 or more |
| Skilled Worker entry clearance with CoS of three years or less (main applicant and each dependant) | 15% | 625 | 719 or more |
| Skilled Worker entry clearance with CoS of more than three years (main applicant and each dependant) | 15% | 1,235 | 1,482 or more |
| Skilled Worker permission to stay with CoS of three years or less (main applicant and each dependant) | 15% | 719 | 827 |
| Skilled Worker permission to stay with CoS of more than three years (main applicant and each dependant) | 15% | 1,423 | 1,637 |
| Skilled Worker – shortage occupation – entry clearance or permission to stay with CoS of three years or less (main applicant and each dependant) | 15% | 479 | 551 |
| Skilled Worker – shortage occupation – entry clearance or permission to stay with CoS of more than three years (main applicant and each dependant) | 15% | 943 | 1,085 |
| Skilled Worker – Health & Care – entry clearance or permission to stay with CoS of three years or less (main applicant and each dependant) | 15% | 247 | 284 |
| Skilled Worker – Health & Care – entry clearance or permission to stay with CoS of more than three years (main applicant and each dependant) | 15% | 479 | 551 |
| Temporary Worker entry clearance or permission to stay, including Creative Worker, Government Authorised Exchange and Youth Mobility Scheme (main applicant and each eligible dependant) | 15% | 259 | 298 |
| Visitor | 15% |
Six month: 100 Two year: 376 Five year: 670 Ten year: 837 Visiting academic: 200 Private medical treatment: 200 |
Six month: 115
Two year: 433 Five year: 771 Ten year: 963 Visiting academic: 230 Private medical treatment: 230 |
| Settlement (indefinite leave) | At least 20% | 2,404 | 2,885 or more |
| British citizenship (net of £80 citizenship ceremony fee, where applicable) | At least 20% | Naturalisation: 1,250
Adult registration: 1,126 Child registration: 1,012 |
Naturalisation: 1,500 or more
Adult registration: 1,352 or more Child registration: 1,215 or more |
| Immigration Health Surcharge (full rate) per year of permission | 10% | 624 | 1,035 |
| Immigration Health Surcharge (dependants under 18) per year of permission | 65% | 470 | 776 |
| Super priority processing | At least 20%, and equalising entry clearance and permission to stay | Entry clearance: 956 Permission to stay: 800 |
1,147 or more |
| Priority processing | At least 20%, and equalising entry clearance and permission to stay rates | Entry clearance (non-settlement): 250 Permission to stay: 500 |
600 or more |
There has been no announcement on whether the Immigration Skills Charge (ISC) rate will be amended. This is levied for Skilled Worker and Senior or Specialist Worker applications, unless an exemption applies. The current rate of ISC is GBP 1,000 per year (i.e. GBP 5,000 for a five year visa), per worker for medium or large sponsors, or GBP 364 per year for small or charitable sponsors.
If you have questions about these developments, please get in touch with a member of our Immigration Team.