Immigration

Sponsor employers of migrants need to be aware of the impact of various recent changes and announcements:

• Plans to increase sponsor and immigration fees: draft legislation has been laid before parliament which, once passed, will increase a number of immigration fees. It is proposed that the sponsor fee for the skilled worker and other work visa routes should increase to £525 (from £239). 

• Prohibition on recouping sponsor fees and/or associated administrative costs: the Home Office has updated its guidance to expressly prohibit the passing on (recouping or attempting to recoup) of the following fees to sponsored workers (assigned on or after 31 December 2024): (a) skilled worker sponsor licence fee or associated administrative costs (including premium services); or (b) certificate of sponsorship fees. Passing on the immigration skills charge is already prohibited.

• Prohibition on sponsoring workers in a personal capacity: the Home Office has updated its guidance to expressly prohibit sponsoring workers in a “personal capacity”. This covers situations where: (a) the sponsor is an individual or household wishing to sponsor a worker in a personal capacity and the sponsor is not otherwise conducting business or providing a service in the UK; or (b) the worker will be employed by, or engaged for the personal benefit of, an individual (or their close relative or partner) who works for the sponsor, and the role is unrelated to the sponsor’s wider activities.

This is yet another potential blow for employers who are already battling with certain skills shortages, increases to National Minimum Wage, National Insurance Contributions and proposed increase to employee rights under Labour’s Employment Bill.