UK Employers Face Higher Fees for Sponsoring Existing and New Migrant Workers

LONDON Oct 20: The UK immigration rules are undergoing continuous and substantial reform following the release of the White Paper earlier this year. Among the key updates are the widely discussed increase in the residence requirement for settlement, as well as stricter criteria for the Skilled Worker route. These include higher minimum salary thresholds, an increased Immigration Skills Charge, and more demanding English language requirements. The changes primarily affect skilled professionals who have legally migrated to the UK to fill workforce shortages and contribute to the national economy.

The most notable confirmed changes relate to the Skilled Worker route, particularly the rise in the minimum salary threshold, which will increase from £38,700 to £41,700 starting in July 2025.

London-based companies, or those with higher turnovers, will be in a far stronger position to meet the salary requirements under the Skilled Worker visa compared to smaller businesses in other parts of the UK. This disparity is likely to restrict smaller companies’ access to the vital talent needed for their growth and expansion.

The salary threshold is not the only financial rise, as the Home Office has also announced a 32% increase to the Immigration Skills Charge (ISC). This fee, which must be paid by employers—including charitable organisations—for each sponsored worker, represents another significant cost increase for businesses.

For example, a charity sponsoring a Skilled Worker for five years currently pays £1,820 in ISC. Under the new fees, this will rise to £2,400—a substantial increase that many small businesses and charities may struggle to afford, potentially discouraging them from sponsoring foreign workers altogether.

The purpose of raising the ISC is to deter UK firms from hiring foreign workers because doing so will increase their costs.

Currently, for medium or large sponsors, the ISC is £1,000 for the first 12 months, and thereafter it is £500 for each additional 6 months.

However, ISC will not be applicable if the UK employer is sponsoring someone to switch to either a Skilled Worker or Senior or Specialist Worker visa from a visa that allows them to study.

The Immigration Skills Charge has to be paid by the employer and not the foreign worker. The firm’s license may be revoked if it asks the sponsored worker to pay the fee or any costs linked to their application.

Foreign workers will find it more difficult to find employment in the UK as a result of the country’s new immigration restrictions. The White Paper on UK Immigration, introduced in May 2025, proposed several new rules that restrict foreign workers from getting jobs in the United Kingdom.

One of the key proposals was to increase the Immigration Skills Charge (ISC), which is paid by employers sponsoring skilled foreign workers and reinvested in training the domestic workforce.

The new Immigration Skills Charge will be £1,320 for the first 12 months and thereafter it is £660 for each additional 6 months.

From January 2026, new entrants to the Skilled Worker route will be required to demonstrate a higher level of English proficiency—level B2, equivalent to A Level standard.