British employers who sponsor overseas staff awoke on 16 December 2025 to a significantly higher bill. Regulations laid before Parliament in October take effect today, increasing the Immigration Skills Charge (ISC) by 32 %. Large or medium-sized sponsors now pay £1,320 per sponsored worker for every 12-month block of the Certificate of Sponsorship, up from £1,000, while small and charitable sponsors pay £480 (previously £364).
The ISC, introduced in 2017, is designed to encourage investment in the domestic workforce by making it more expensive to rely on migrant labour. Government has not adjusted the fee since launch; officials argue the sharp rise is needed to keep pace with inflation and help fund the training and apprenticeship budget that the charge supports.
If navigating these evolving fee structures feels daunting, organisations can lean on VisaHQ’s UK team for support. The specialist consultants at VisaHQ guide sponsors through Certificate of Sponsorship issuance, cost modelling and compliance, and can advise on alternative visa routes that may reduce exposure to the ISC. Learn more at https://www.visahq.com/united-kingdom/.
![Home Office hikes Immigration Skills Charge by 32 % from today]()
For employers who make extensive use of the Skilled Worker or Senior/Specialist Worker routes, the cost implications are substantial. A five-year sponsorship of one employee now costs £6,600 instead of £5,000 for a large sponsor—an extra £1,600. Organisations with pipelines of recruits rushed to assign Certificates of Sponsorship before midnight on 15 December to avoid the surcharge. Immigration advisers report a spike in sponsor-management-system traffic and warn of possible processing backlogs this week.
Sector bodies such as Tech UK and the CBI have criticised the size of the hike, arguing that it undermines Britain’s attractiveness for high-growth firms that need niche skills quickly. Conversely, trade-union leaders welcomed the move as a nudge toward training UK residents. Multinationals should revisit mobility budgets, consider shortening initial visa periods to reduce upfront ISC outlay, and explore alternative routes such as Global Business Mobility – Secondment, which is exempt from the charge. Employers must also audit existing CoS assignments to ensure correct payment levels, as under-payment risks civil penalties and licence suspension.
In the medium term, HR teams should model cumulative cost increases, factoring in the higher English-language bar (see separate story) and the forthcoming tightening of settlement rules. Early budgeting and strategic workforce planning will be essential to keep assignments viable while maintaining compliance.
The ISC, introduced in 2017, is designed to encourage investment in the domestic workforce by making it more expensive to rely on migrant labour. Government has not adjusted the fee since launch; officials argue the sharp rise is needed to keep pace with inflation and help fund the training and apprenticeship budget that the charge supports.
If navigating these evolving fee structures feels daunting, organisations can lean on VisaHQ’s UK team for support. The specialist consultants at VisaHQ guide sponsors through Certificate of Sponsorship issuance, cost modelling and compliance, and can advise on alternative visa routes that may reduce exposure to the ISC. Learn more at https://www.visahq.com/united-kingdom/.
For employers who make extensive use of the Skilled Worker or Senior/Specialist Worker routes, the cost implications are substantial. A five-year sponsorship of one employee now costs £6,600 instead of £5,000 for a large sponsor—an extra £1,600. Organisations with pipelines of recruits rushed to assign Certificates of Sponsorship before midnight on 15 December to avoid the surcharge. Immigration advisers report a spike in sponsor-management-system traffic and warn of possible processing backlogs this week.
Sector bodies such as Tech UK and the CBI have criticised the size of the hike, arguing that it undermines Britain’s attractiveness for high-growth firms that need niche skills quickly. Conversely, trade-union leaders welcomed the move as a nudge toward training UK residents. Multinationals should revisit mobility budgets, consider shortening initial visa periods to reduce upfront ISC outlay, and explore alternative routes such as Global Business Mobility – Secondment, which is exempt from the charge. Employers must also audit existing CoS assignments to ensure correct payment levels, as under-payment risks civil penalties and licence suspension.
In the medium term, HR teams should model cumulative cost increases, factoring in the higher English-language bar (see separate story) and the forthcoming tightening of settlement rules. Early budgeting and strategic workforce planning will be essential to keep assignments viable while maintaining compliance.
