Immigration Skills Charge: what UK sponsors need to know about the upcoming increase

The cost of sponsoring overseas talent in the UK is set to rise. The Immigration Skills Charge (ISC) – a levy paid by employers when issuing a Certificate of Sponsorship for eligible work routes – will soon increase, raising the overall cost of bringing skilled workers to the UK.

What is the Immigration Skills Charge (“ISC”)?

The ISC is a levy that UK employers must pay when assigning a Certificate of Sponsorship for certain work routes. It is designed to support domestic skills development and is charged in addition to other sponsorship costs.

How much is the ISC increasing by?

The ISC is set to rise by approximately 32%. For medium and large sponsors, the annual amount per sponsored worker will increase from £1,000 to £1,320. The discounted rate for small or charitable sponsors will also rise proportionally, although the proposed figure has not yet been released.

When will the new rates take effect?

The increase will be introduced through separate legislation and is expected to come into force in December 2025.

How does this affect overall sponsorship costs?

As the ISC is charged in addition to other mandatory costs – such as the Certificate of Sponsorship fee and the Immigration Health Surcharge – the increase will directly impact recruitment budgets, the cost of multi‑year deployments and the sustainability of longer‑term sponsorship plans.

What can HR and talent teams do now?

HR professionals can take practical steps to prepare, such as:

• Incorporating the higher ISC into current budget models and total cost-of-hire calculators, and updating approval thresholds to reflect the new per‑year costs;
• Mapping the pipeline of prospective hires and upcoming extensions to understand exposure across 2025/26, and consider timing decisions where feasible;
• Coordinating with finance, workforce planning and business units to prioritise critical roles and align internal sign‑off processes with the impending change;
• Updating offer templates and business cases to ensure cost assumptions remain accurate and transparent for relevant individuals.

What should employers keep in mind strategically?

This increase signals a continuing upward trend in the cost of accessing international talent. Robust budgeting, clear governance for sponsorship decisions and careful forecasting for multi‑year placements will be essential to maintain compliance and control costs as the new rules take effect.

Gherson’s Corporate Immigration Team can advise on budget impact assessments, sponsorship strategy and timing considerations ahead of the introduction of the new ISC rates. We can also provide support with policy updates, training for HR and hiring managers, and end‑to‑end sponsorship processes to help manage risk and maintain compliance.

How Gherson can assist

Gherson’s Immigration Team are highly experienced in advising on all UK visa matters. If you have any questions arising from this blog, please do not hesitate to contact us for advice, send us an e-mail, or, alternatively, follow us on X, Facebook, Instagram, or LinkedIn to stay-up-to-date.

The information in this blog is for general information purposes only and does not purport to be comprehensive or to provide legal advice. Whilst every effort is made to ensure the information and law is current as of the date of publication it should be stressed that, due to the passage of time, this does not necessarily reflect the present legal position. Gherson accepts no responsibility for loss which may arise from accessing or reliance on information contained in this blog. For formal advice on the current law please do not hesitate to contact Gherson. Legal advice is only provided pursuant to a written agreement, identified as such, and signed by the client and by or on behalf of Gherson.

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