The Government has published details of the previously announced increase to visa and sponsorship fees, with the aim of increasing revenue across a range of immigration and nationality visa pathways and associated services.

Set to become effective on 4^th October 2023, the Immigration and Nationality (Fees) (Amendment) (No. 2) Regulations 2023 will bring about substantial adjustments to the fee structures. As outlined in an official press release from the Home Office, these changes encompass a 15% increase in the cost of most work and visit visas. Furthermore, priority visas, study visas, and certificates of sponsorship will incur fee hikes of at least 20%. Particularly noteworthy is the 35% surge in the application fee for acquiring a student visa from abroad.

It’s worth noting that the anticipated 66% rise in the Immigration Health Surcharge (IHS) does not form part of the recent announcements. The Home Office has clarified that this particular increase will be introduced at a later date in the autumn.

You can see all of the new fees below.

Regulations 2023 will bring about substantial adjustments to the fee structures.

It is now crucial for both employers and individuals to proactively take measures to reduce the impact of these increases. Important factors to consider include the following:

1. Those intending to apply for a UK visa soon should do so promptly to benefit from the current lower fees. For example, a worker applying for a 5-year visa can save over £2,000 in health surcharge fees by applying before the fee increase comes into effect.
2. Employers should be prepared for higher recruitment expenses going forward. One approach to consider is implementing clawback agreements, which require employees to reimburse a portion of their visa fees if they leave their job within a specified period after receiving their visa.
3. Even if employers don’t directly cover individual visa costs, they may opt to provide additional support, such as salary advances or employee loans.
4. Employers should also consider issues related to business continuity if current employees cannot extend their immigration status due to financial constraints.
5. In cases where the impact on the business is significant, employers may need to consider leaving vacancies unfilled, postponing or retracting offers to employees relocating to the UK from abroad, or assessing the financial consequences of employees working abroad for extended periods and later seeking to return to the UK.

If you want to have more information on the above and/or on sponsoring migrant workers, here at Clarkslegal we are experts in obtaining Skilled Worker and Global Business Mobility: Senior/Specialist Worker visas with a quick turnaround and 100% success rate. We work closely with many organisations to help them obtain and maintain their sponsor licences and furthermore facilitate the sponsorship of migrant workers.