Government Announces Shocking Increase in Visa Fees and Charges for UK Business Immigration

 UK Employers Face Hefty Financial Burden Amid Pay Increase Plans in Public Sector

In a move that has left UK employers reeling, the government has unveiled its plans to substantially raise visa fees and charges. This decision, made in conjunction with funding pay increases in the public sector, is set to have a profound impact on businesses and individuals seeking work visas.

One of the most significant changes is the staggering increase in the Immigration Health Surcharge. Starting soon, the annual rate for the main charge will skyrocket from £624 to £1,035, while under-18s and students will see their yearly fee rise from £470 to £776. It’s important to note that this charge is payable as a lump sum during the visa application process, resulting in a hefty financial burden for applicants. For instance, a three-year visa would require a payment of £3,105 (£1,035 multiplied by 3).

Furthermore, work and visit visa applications will face a substantial 15% increase in fees. To illustrate, a 3-year Skilled Worker visa application filed outside the UK will jump from £625 to £719. Moreover, fees for Certificates of Sponsorship, settlement, citizenship, wider entry clearance, leave to remain, study visas, and priority visas will surge by at least 20%.

While no specific date has been provided for the implementation of these fee increases, they are anticipated to take effect imminently, given the current economic pressures faced by the government.

These steep hikes in visa fees come as a significant blow to UK employers who rely on sponsoring non-British/Irish nationals to meet their workforce demands. When coupled with the existing Immigration Skills Charge for sponsored work visas, which stands at £1,000 per year of the visa applied for (with a reduced charge of £364 per year for small companies and charities), the financial burden becomes even more substantial.

For medium and large employers, a sponsored work visa for a single employee, lasting three years, will now cost a minimum of £7,000, excluding legal advice fees and charges for priority processing.

While employers have the option to pass on visa costs to sponsored employees, they must tread carefully in a competitive recruitment market. The increased fees may deter highly sought-after applicants, prompting employers to reconsider their strategies.

Moreover, sponsored employees will bear the brunt of these additional costs for each dependent family member they bring along, unless their employer is willing to cover these expenses.

UK employers must carefully factor in these fee increases when planning their future recruitment efforts, especially if they heavily rely on non-British/Irish workers to meet their talent requirements.

This shocking announcement has sent shockwaves through the business community, forcing employers to reassess their budgets and recruitment plans. As the dust settles, only time will tell how these new fees will impact the UK’s business landscape and its ability to attract and retain international talent.