On the 16th January 2025, the Labour Government announced its intention to increase the fees of several UKVI products and services. Some of the proposed increases include:
The goal of these proposed increases is to generate further income for the migration and borders system while decreasing the reliance on the public purse. However, could this proposal provide us with a glimpse into this government’s future intentions for the Immigration System?
For employers, the most alarming proposal is the 119% price increase on Certificates of Sponsorships for work routes. According to the impact assessment released by the Government on the 21st January 2025, it expects this fee hike to be applied to businesses of all sizes.
However, as acknowledged by Keir Starmer in his 28th November 2024 speech, the UK is experiencing skills shortages across the country, which has left many employers with no choice but to look overseas to plug gaps in their workforce. Small and micro businesses have especially been affected by this skills shortage as in 2023/2024 they made up 78% of sponsors according to internal Home Office data.
Therefore, it’s evident that this 119% price hike will impact small and micro businesses the hardest. When combined with the fee and salary threshold increases imposed by the previous Conservative government, it seems to paint a picture of a government who wants to discourage employers from hiring overseas talent.
This proposal seems to signify that the current Labour government is making good on their promise to end the UK’s ‘overreliance’ on migrant labour. Could this mean that we could potentially see more restrictive rules being introduced?
An immigration white paper is pending from the Government, so only time will tell what the current government’s intentions for the immigration system is.
This proposal is currently going through Parliament and will only go into effect if approved by both Houses. However, it’s likely that this proposal will be approved by Parliament and be implemented quickly in time for the usual April immigration updates.
Therefore, we advise employers to review their overseas recruitment financial planning in preparation for potential price increases. Employers are advised to assign any pending Certificates of Sponsorship sooner rather than later to avoid paying higher fees.
If you have any queries on the above or would like to talk to our team of immigration specialists, please don't hesitate to get in touch with us at info@migrate-uk.com