In a significant move, the UK government is planning to increase the fees associated with foreign worker visa sponsorships. This change, set to impact employers who wish to hire foreign nationals under the Skilled Worker visa route, is expected to raise the cost of sponsoring foreign workers. The Certificate of Sponsorship (CoS) fee, which employers must pay when sponsoring a foreign worker, is slated to double. This article explains the key details of the proposed changes and what UK employers need to know about the UK foreign worker visa sponsorship fees.
UK Employers to Face Major Fee Hike for Foreign Worker Visa Sponsorships in 2025
What is the Certificate of Sponsorship?
A Certificate of Sponsorship (CoS) is a crucial part of the application process for foreign nationals seeking a Skilled Worker visa to work in the UK. When an employer wishes to sponsor a foreign worker, they must assign a CoS, which is an electronic record that allows the worker to apply for a visa. The CoS includes a unique reference number, which the worker uses to submit their visa application.
Currently, the cost of assigning a CoS is £239, but under the new proposed rules, this cost could rise to £525.
Why is the UK Increasing Foreign Worker Visa Sponsorship Fees?
The UK government’s proposed fee increases are part of a broader effort to reduce taxpayer reliance on funding the migration and borders system. The UK Home Office aims to adjust the fees for immigration-related services, including the issuance of the CoS and the Electronic Travel Authorisation (ETA), to generate additional revenue for the system.
The Skilled Worker visa route, which is essential for bringing skilled foreign workers into the UK labor market, will see a substantial increase in costs. Employers will need to reassess their budgets and prepare for these higher costs when sponsoring foreign nationals.
Key Reasons Behind the Fee Hike:
- Reduced reliance on taxpayer funding: The fee increases are part of a government strategy to reduce dependence on taxpayer funds for immigration services.
- Generation of additional revenue: The UK government anticipates that the adjustments to immigration fees will raise approximately £269 million annually.
- Streamlining immigration processes: The move aligns with the government’s “Plan for Change,” aimed at digitizing and simplifying the immigration process.
Breakdown of Proposed Fee Increases
Here’s a breakdown of the key fee increases proposed by the UK government:
| Fee Type | Current Fee | Proposed Fee | Expected Change |
|---|---|---|---|
| Certificate of Sponsorship | £239 | £525 | +£286 |
| Electronic Travel Authorisation (ETA) | £10 | £16 | +£6 |
| Naturalisation as a British Citizen | £1,300 | £1,605 | +£305 |
| Naturalisation as British Overseas Territories Citizen | £1,000 | £1,070 | +£70 |
These increases will significantly impact UK employers who wish to hire foreign nationals under the Skilled Worker route. Employers must account for these rising costs when planning their recruitment budgets.
Impact on Employers
The increased CoS fee will likely result in higher costs for UK employers who need to sponsor foreign workers. Many businesses rely on foreign talent, particularly in industries like healthcare, technology, and engineering, where the demand for skilled workers exceeds the local labor pool.
Employers will need to ensure that their immigration budgets are adjusted to cover the increased costs of sponsorship. This fee hike could lead to higher expenses for businesses, especially those that hire multiple foreign workers each year.
How Employers Can Prepare for the Fee Increases
UK employers should begin preparing for the upcoming fee increases by taking the following steps:
- Review Your Sponsorship Budget: Ensure that your business accounts for the potential £286 increase in the Certificate of Sponsorship fees. This will be crucial for budgeting immigration-related costs in the future.
- Stay Informed on Legislative Changes: The proposed fee increases are still awaiting approval from the UK Parliament. Stay updated on any changes to the timeline or final amounts to adjust your plans accordingly.
- Plan for Increased Recruitment Costs: The increased fees may affect the overall cost of hiring foreign workers. Factor this into your recruitment strategy, especially if you are heavily reliant on overseas talent.
What Does This Mean for Skilled Worker Visa Applicants?
For Skilled Worker visa applicants, the increase in fees could mean higher costs when applying for a visa. While applicants themselves do not pay the Certificate of Sponsorship fee, they may face indirect costs due to the rising expenses for employers. This could lead to more stringent recruitment processes, as employers might become more selective due to the added financial burden.
What’s Next for UK Employers and Foreign Workers?
The UK government’s proposed fee increases are expected to take effect soon, though the timeline for implementation depends on the approval process within Parliament. If the changes are approved, UK employers will need to adapt to the new costs associated with hiring foreign workers.
Key Takeaways for Employers:
- Prepare for higher sponsorship costs: The CoS fee is expected to rise from £239 to £525.
- Review immigration budgets: Factor in the increased costs when planning for foreign worker recruitment.
- Stay informed on approval status: Follow developments in the UK Parliament to understand when the fee increases will come into effect.
Navigating the New UK Foreign Worker Visa Sponsorship Fees
The UK government’s decision to increase foreign worker visa sponsorship fees is a significant development for employers relying on international talent. The Certificate of Sponsorship fee hike will likely have a major financial impact on businesses that hire skilled foreign workers, particularly in sectors like healthcare, engineering, and technology.
As the UK government works to streamline immigration processes and reduce taxpayer dependency, employers must stay informed and adjust their budgets to ensure they can continue to hire skilled foreign nationals.
