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Dec 9, 2025

Peers to vote on 32 % hike in Immigration Skills Charge as Lords scrutinise draft regulations

Peers to vote on 32 % hike in Immigration Skills Charge as Lords scrutinise draft regulations
The Hansard Society’s weekly bulletin confirms that the House of Lords will debate and vote on the Immigration Skills Charge (Amendment) Regulations 2025 later this week. The statutory instrument—already approved in Grand Committee—raises the levy that UK sponsors pay when issuing Certificates of Sponsorship from £1,000 to £1,320 per skilled worker per year (small or charitable sponsors: from £364 to £480).

Government argues that the 32 % uplift corrects inflation since the charge was introduced in 2017 and will generate an extra £420 million over the current Spending Review period to fund domestic skills training. Employers’ groups counter that the timing, combined with July’s higher salary thresholds and January’s English-language hike, risks making the UK the costliest G20 destination for intra-company transfers.

Peers to vote on 32 % hike in Immigration Skills Charge as Lords scrutinise draft regulations


If the Lords approves the regulations on Thursday 11 December, the new rates will take effect for any Certificate assigned on or after 16 December 2025. That gives companies barely a week to accelerate pipeline assignments or extensions under the lower fee. Immigration advisers say sponsors issuing large volumes—especially IT outsourcers and health-care providers—could save six-figure sums by advancing CoS allocations.

Mobility managers should also budget for knock-on increases in the Immigration Health Surcharge, scheduled for April 2026, and ensure client-cost recharge models remain compliant (the ISC cannot legally be passed to the migrant). Finally, global payroll should be alerted: HMRC audits have begun cross-checking apprenticeship-levy relief claims against ISC payments.
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