The rise of UK sponsorship costs: what growing businesses need to know

Autumn immigration strategy series

The rise of UK sponsorship costs: what growing businesses need to know

In April 2025, the Home Office significantly increased the fees associated with sponsoring overseas workers, with the fee to assign a Certificate of Sponsorship (CoS) increasing by 120% in addition to the increase in visa application fees. These changes are part of the government’s wider strategy to reduce net migration and encourage the hiring of UK-based talent.

Further cost increases are expected, as outlined in the Immigration White Paper released in May 2025, titled “Restoring Control Over the Immigration System.”

Sponsorship costs: an overview

To sponsor an overseas worker for a job in the UK, the employer must pay several fees that cannot be recouped from the worker, such as:

• Sponsor licence fee
• Certificate of Sponsorship fee
• Immigration Skills Charge

The total amount due for each fee will vary depending on several factors, such as the type of licence applied for, the visa duration, and the ‘size’ of the organisation.

How is the organisation size determined?

A company is classified as ‘small’ for the purposes of sponsor licence applications if at least two of the following criteria are met:

• The annual turnover is £15 million or less
• The total assets are worth £7.5 million or less
• The number of employees is 50 or fewer

Registered charities in England, Wales, Scotland or Northern Ireland are also considered ‘small’ sponsors for fee purposes.

Organisations that do not meet the above criteria are considered as ‘medium’ or ‘large’ sponsors and are subject to higher fees.

Sponsor licence and priority fee

The Sponsor licence fee is payable to the Home Office by the employer when applying for a licence. The fee amount depends on the size of the organisation and the type of licence that the employer is applying for.

This represents a 7%-increase compared to the pre-April 2025 fees (£536 for small sponsors and £1,479 for large sponsors).

Standard processing for sponsor licence applications can take up to 8 weeks from the date of submission. For faster turnaround, employers may opt for a 10-working day priority service, currently priced at £500.

Certificate of Sponsorship (CoS)

Once a sponsor licence is in a place, employers must pay a fee to assign a CoS to each sponsored worker. This fee depends on the visa category:

Prior to April 2025, the fee to assign a CoS to a Skilled Worker was £239, marking a 120% increase.

Immigration Skills Charge (ISC)

The ISC is an additional fee employers must pay when assigning a CoS to a Skilled Worker. The charge is based on the size of the organisation and the duration of the visa.

For example, a large organisation sponsoring a Skilled Worker for 5 years would be liable to pay £5,000 for the ISC. However, there are certain occupation codes and dependants of a Skilled Worker that are exempt from ISC. Further information is outlined here.

The ISC was introduced in 2017 in a bid to reduce reliance on the international workforce and to bring extra funding into the UK. Although the ISC did not increase in April 2025, the May White Paper confirmed a 32%-increase later this year. This would raise the ISC to:

• £480 per year for small sponsors
• £1,320 per year for medium/large sponsors

These rising sponsorship costs signal a clear direction in UK immigration policy: to reduce dependency on overseas labour and increase investment in domestic talent. For employers, particularly in sectors heavily reliant on international workers, these changes underscore the importance of financial planning and proactive compliance.

If your organisation is considering sponsoring a worker or needs guidance on navigating these new cost structures, Gherson’s Business Immigration Team is here to help.

This blog is for informational purposes only and does not constitute legal advice.

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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