Marked increases in U.K. immigration fees that went into effect in October 2023, along with a major boost in 2024 to the Immigration Health Surcharge (IHS), could mean higher costs and more hiring difficulties for employers in the country.
Among other changes in immigration fees, the government raised most work and visit visas by 15 percent effective Oct. 4, 2023. While employers won’t pay more in sponsor fees, the U.K. increased certificates to sponsor new workers by 20 percent.
“The latest increase in immigration fees can be seen as yet another upfront overhead for businesses recruiting overseas talent,” said Vanessa Ganguin, an attorney with GQ Littler in London.
“With the skills shortages many sectors we work with are facing, these price increases are unlikely to stop a predicted increase in work visas over the next few years,” she said.
In addition to the recent fee increases, the IHS—the compulsory charge for immigrants to use the U.K.’s National Health Service—is rising about 66 percent, to 1,035 pounds from 624 pounds, in 2024. A discounted rate for students, children and youth mobility visa holders also will rise, Ganguin noted.
With the higher health surcharge, a family of two adults and two children will pay 18,110 pounds over a five-year visa, a big hike over the current 10,940 pounds, she said, adding that the charge already has tripled since it was introduced at 200 pounds in 2015.
Fee Hike Exceeds Inflation
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