From 16 December 2025 every UK sponsor assigning a Certificate of Sponsorship must pay a significantly higher Immigration Skills Charge (ISC) after amendments to the 2017 regulations entered into force. The fee—viewed by HM Treasury as a hypothecated tax—is now £1,320 per sponsored year for large organisations (up from £1,000) and £480 for small or charitable sponsors (up from £364). A five-year hire will therefore cost a large corporate an extra £1,600, excluding visa fees and the Immigration Health Surcharge.
The Home Office says the increase aligns the ISC with wage inflation and ensures businesses, not taxpayers, fund the skills pipeline. Employers argue that the 32 % jump, announced only in October, gives little budgeting time and risks deterring inward investment—particularly in manufacturing and care, where margins are tight.
Legal advisers note that the uplift applies to any CoS assigned on or after 16 December, regardless of when recruitment began. Companies rushing to pre-assign certificates before the deadline reported Sponsor Management System slow-downs, prompting calls for a grace period.
![Immigration Skills Charge rises 32 % as new regulations take effect]()
VisaHQ’s corporate visa management services can help sponsors navigate the higher costs and evolving compliance landscape. From forecasting Immigration Skills Charge liabilities to streamlining Certificate of Sponsorship issuance, our specialists and online platform (https://www.visahq.com/united-kingdom/) provide end-to-end support, ensuring organisations remain compliant while minimising administrative burdens.
Practical implications include: updating cost-approval workflows; communicating higher recharge costs to clients or subsidiaries; and reassessing package design for multi-year postings. Some multinationals are considering shorter initial visa grants with later extensions to spread cash flow.
The ISC forms part of the government’s wider plan to make immigration ‘self-funding’, alongside planned rises in Electronic Travel Authorisation and naturalisation fees next year. Sponsors should model the cumulative impact on mobility budgets and consider lobbying through trade bodies ahead of the 2026 fee review.
The Home Office says the increase aligns the ISC with wage inflation and ensures businesses, not taxpayers, fund the skills pipeline. Employers argue that the 32 % jump, announced only in October, gives little budgeting time and risks deterring inward investment—particularly in manufacturing and care, where margins are tight.
Legal advisers note that the uplift applies to any CoS assigned on or after 16 December, regardless of when recruitment began. Companies rushing to pre-assign certificates before the deadline reported Sponsor Management System slow-downs, prompting calls for a grace period.
VisaHQ’s corporate visa management services can help sponsors navigate the higher costs and evolving compliance landscape. From forecasting Immigration Skills Charge liabilities to streamlining Certificate of Sponsorship issuance, our specialists and online platform (https://www.visahq.com/united-kingdom/) provide end-to-end support, ensuring organisations remain compliant while minimising administrative burdens.
Practical implications include: updating cost-approval workflows; communicating higher recharge costs to clients or subsidiaries; and reassessing package design for multi-year postings. Some multinationals are considering shorter initial visa grants with later extensions to spread cash flow.
The ISC forms part of the government’s wider plan to make immigration ‘self-funding’, alongside planned rises in Electronic Travel Authorisation and naturalisation fees next year. Sponsors should model the cumulative impact on mobility budgets and consider lobbying through trade bodies ahead of the 2026 fee review.
