What businesses sponsoring skilled workers need to know about the 2026 UK fee increases

From April 2026, UK Visas and Immigration (UKVI) fee increases are set to reshape the cost landscape for employers sponsoring overseas talent. For businesses relying on the Skilled Worker visa route, these changes are more than a routine adjustment – they have direct implications for recruitment budgets, workforce planning and long-term immigration strategy.

In this article, we explore how the latest fee increases affect Skilled Worker applications, Indefinite Leave to Remain (ILR), and what sponsors should be doing now to prepare.

Rising costs across the sponsorship lifecycle

UK immigration fees have been steadily increasing, with 2026 continuing this trend. Visa application fees, sponsorship costs and settlement fees have all seen upward pressure, with further increases expected from April 2026.

For Skilled Worker visas, application fees already range broadly depending on the length of sponsorship – a visa for more than three years can reach up to £1,865 per applicant. These figures are often just the starting point.

In addition to visa fees, employers and applicants must account for:

• The Immigration Health Surcharge (IHS), typically exceeding £1,000 per year per worker;
• Legal and administrative costs; and
• Biometric enrolment and document-related expenses.

Taken together, the true cost of sponsorship can quickly run into several thousand per employee.

Significant increases in sponsorship costs

One of the most notable increases affecting employers is the cost of assigning a Certificate of Sponsorship (CoS).

Recent changes have seen the CoS allocation fee rise dramatically to approximately £525 per certificate – more than double the previous levels.

For businesses hiring at scale, this represents a substantial cost. Importantly, this fee must be paid by the sponsor and cannot be passed on to the worker, reinforcing the financial burden on employers.

Sponsor licence-related costs have also increased, including priority processing services and application fees, further adding to the overall cost of maintaining a compliant sponsorship operation.

ILR costs and long-term financial planning

The financial implications do not end at the visa stage. For employers committed to retaining international talent, settlement costs must also be considered.

As of 8 April 2026, the fee for an ILR application will be £3,226 per person, currently the fee for this application is £3,026.

While ILR applicants are exempt from the Immigration Health Surcharge, the upfront cost can still be significant – particularly for employees with dependants. A family of four, for example, could face Home Office fees exceeding £12,000 for settlement alone.

For employers offering relocation or retention packages, these costs are increasingly relevant when designing competitive employment offers.

Practical steps for sponsors

In light of these changes, employers should consider taking proactive steps:

1. Audit current sponsorship costs and update internal budgets;
2. Review recruitment pipelines to identify future sponsorship needs;
3. Ensure compliance systems are robust to avoid costly errors; and
4. Seek advice on cost-efficient immigration strategies.

Future planning is key. Small miscalculations in fee assumptions can quickly escalate into significant financial exposure.

Final thoughts

The 2026 UKVI fee increases reflect a broader trend towards a more costly and complex immigration system.

Employers who take the time to understand the evolving cost landscape, plan ahead and ensure compliance will be best placed to continue attracting and retaining international talent in a competitive global market.

At Gherson, we work closely with businesses to navigate immigration costs, mitigate risk and build sustainable sponsorship strategies tailored to their needs.

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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