Imminent Changes in UK Skilled Worker Visa Fees: Comprehensive Insight for Employers
Effective 4 October 2023, changes to the Skilled Worker Home Office visa fee structure will take effect. These amendments will impact both standard and shortage occupation roles and distinguish between applications made from outside the United Kingdom and those submitted within the country. Different fees apply to the Health and Care visa.
Additionally, the government has indicated an impending increase in the Immigration Health Surcharge (IHS) slated for this autumn. Although the specific date for this increase has yet to be confirmed, we have included a column in the tables below to assist you in your budgetary planning. Please note, these anticipated fees should be used as a guideline and not be fully relied upon until officially confirmed by the government.
Home Office Fees – Sponsored Workers
Visa Duration | Visa Type | New Visa Fee (Outside UK) | New Visa Fee (Within UK) | Certificate of Sponsorship | Immigration Skills Charge (IHS) | IHS Current (£624/yr) | Total Fees w/ Current IHS | IHS Anticipated (£1,035/yr) | Total Fees w/ Anticipated IHS |
3 Years | Standard | £719 | £827 | £239 | £1,092 (Small)/ £3,000 (Medium/Large) | £1,872 | £3,922 (Small)/ £5,830 (Medium/Large) | £3,105 | £5,155 (Small)/ £7,063 (Medium/Large) |
5 Years | Standard | £1,420 | £1,500 | £239 | £1,820 (Small)/ £5,000 (Medium/Large) | £3,120 | £6,599 (Small)/ £9,779 (Medium/Large) | £5,175 | £8,654 (Small)/ £11,834 (Medium/Large) |
3 Years | Shortage | £551 | £551 | £239 | £1,092 (Small)/ £3,000 (Medium/Large) | £1,872 | £3,754 (Small)/ £5,662 (Medium/Large) | £3,105 | £4,987 (Small)/ £6,895 (Medium/Large) |
5 Years | Shortage | £1,084 | £1,084 | £239 | £1,820 (Small)/ £5,000 (Medium/Large) | £3,120 | £6,263 (Small)/ £9,443 (Medium/Large) | £5,175 | £8,318 (Small)/ £11,498 (Medium/Large) |
* You’re usually considered a small sponsor if at least 2 of the following apply:
- Your annual turnover is £10.2 million or less
- Your total assets are worth £5.1 million or less
- You have 50 employees or fewer
Home Office Fees – Dependants
Visa Duration | Visa Type | Dependant Type | New Visa Fee (Outside UK) | New Visa Fee (Within UK) | IHS Current (£624/yr for Adult, £470/yr for Child) | Total Fees w/ Current IHS (Outside UK) | Total Fees w/ Current IHS (Within UK) | IHS Anticipated (£1,035/yr for Adult, £776/yr for Child) | Total Fees w/ Anticipated IHS (Outside UK) | Total Fees w/ Anticipated IHS (Within UK) |
3 Years | Standard | Adult | £719 | £827 | £1,872 | £2,591 | £2,699 | £3,105 | £3,824 | £3,932 |
5 Years | Standard | Adult | £1,420 | £1,500 | £3,120 | £4,540 | £4,620 | £5,175 | £6,595 | £6,675 |
3 Years | Standard | Child (<18) | £719 | £827 | £1,410 | £2,129 | £2,237 | £2,328 | £3,047 | £3,155 |
5 Years | Standard | Child (<18) | £1,420 | £1,500 | £2,350 | £3,770 | £3,850 | £3,880 | £5,300 | £5,380 |
3 Years | Shortage | Adult | £551 | £551 | £1,872 | £2,423 | £2,423 | £3,105 | £3,656 | £3,656 |
5 Years | Shortage | Adult | £1,084 | £1,084 | £3,120 | £4,204 | £4,204 | £5,175 | £6,259 | £6,259 |
3 Years | Shortage | Child (<18) | £551 | £551 | £1,410 | £1,961 | £1,961 | £2,328 | £2,879 | £2,879 |
5 Years | Shortage | Child (<18) | £1,084 | £1,084 | £2,350 | £3,434 | £3,434 | £3,880 | £4,964 | £4,964 |
 Note: The adult fees apply to dependants aged 18 and over, and the child fees apply to dependants under 18. The Immigration Health Surcharge is expected to increase sometime during the autumn of 2023.
Home Office Fees – Health and Care Visa
Initial Visa Duration | Small Sponsor* | % Increase | Medium/Large Sponsor | % Increase |
Three years | £1,615 (£1,538) | 5.0% | £3,523 (£3,446) | 2.2% |
Five years | £2,610 (£2,266) | 15.2% | £5,790 (£5,446) | 6.3% |
With minimal lead time for adaptation, it’s crucial for employers to quickly adjust their immigration budgets and strategies.Â
Actions to Consider
- Revisit immigration/resourcing budgets, especially if you’re planning to sponsor talent and have already set budgets.
- Alert business and ops teams to assess the impact on your margins and strategise necessary adjustments.
- Reassess your recruitment and talent acquisition strategies. Evaluate the financial implications of sponsoring an initial 3-year visa versus a 5-year one. Explore the possibility of transferring certain fees to candidates, if that’s not feasible, think about implementing clawback agreements to recover your investment should the candidate leave early. Should you bear the cost of dependant’s fee, what are your competitors doing?
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