1. Skilled Workers in the UK: Understanding the Costs of Sponsoring
In an increasingly globalised world, businesses often seek to attract talent from across the globe to remain competitive and innovative. For companies operating in the UK, sponsoring migrants as Skilled Workers is an increasingly common and important practice. With EEA citizens who are not eligible under the EU Settlement Scheme no longer having the right to move to and work in the UK, the UK job market has had to react, and sponsoring migrants as Skilled Workers is no longer something that is unusual.
We very regularly assist start-up companies and small businesses to obtain sponsor licences, and it is possible for any type of business to consider an application, so long as the business need is there, and they are realistic about the costs involved and can afford these.
The costs associated with immigration sponsorship can represent significant financial commitment, and the requirements at the initial application and ongoing costs must be factored in.
This article will set out the fees with reference to the fees as applicable from 09 April 2025 in relation to when a company sponsors migrants to work in the UK as Skilled Workers or as Health and Care Workers.
2. Sponsor Licence Fees
The first step in sponsoring Skilled Workers in the UK is applying for a Sponsor Licence from the Home Office. Such a licence is mandatory for any company looking to hire overseas talent and is valid indefinitely.
The fees for a Sponsorship Licence are as follows:
- Small businesses and charities: £574
- Medium or large businesses: £1,597
Small businesses normally have at least two of the following:
- Annual turnover of £10.2m or less;
- Total assets with £5.1m or less;
- 50 employees or fewer.
Charitable sponsors are registered as charities in England, Wales, Scotland, Northern Ireland or an excepted/exempt charity or an ecclesiastical corporation established for charitable purposes.
3. Certificate of Sponsorship (CoS) Fees
Once a company has obtained a Sponsor Licence, to sponsor a Skilled Worker, they need to issue a Certificate of Sponsorship (CoS) to each individual worker to be sponsored. The CoS fee for Skilled Worker, T2 MOR, and GBM Senior or Specialist workers has risen from £239 per CoS to £525 per CoS. This is the same fee whether the CoS is a Defined Certificate of Sponsorship, intended to sponsor a Skilled Worker applying for entry clearance to come to the UK, or an Undefined Certificate of Sponsorship, to sponsor a Skilled Worker applying for leave to remain within the UK.
It is very important that the correct type of CoS is assigned – this is dictated by the route under which the migrant is being sponsored, as well as where the application is to be made (from within the UK / for entry clearance).
Assigning an incorrect type of CoS not only wastes the fee for that CoS, but can lead to the visa application being refused if a correct type of CoS is not assigned promptly, and the Home Office may consider that Sponsor duties are not being complied with and the sponsor licence itself would be at risk of suspension and revocation.
It may be that a migrant requires an additional CoS to continue working for the same company – this is necessary if the Skilled Worker's job code changes. A Certificate of Sponsorship enables a worker to work under the specified job code, for the sponsoring company. If a Skilled Worker's responsibilities or role change such that the Authorising Officer identifies that they fall within a new job code, they must be re-sponsored.
4. Immigration Skills Charge
The Immigration Skills Charge (ISC) is an expense that a sponsoring UK company must bear.
The ISC is currently set at:
- £364 per year for small or charitable organisations
- £1,000 per year for medium or large businesses
This charge applies to each individual sponsored migrant though there are some exceptions – for example students switching / Skilled Workers being sponsored in certain job codes may not incur this fee.
Since 31 December 2024, the Home Office has required that companies pay the Stage One and Stage Two fees. This means that the Skilled Worker sponsor licence fee (including the fee for adding that route to an existing licence) and any associated administrative costs (including premium services) cannot be recouped from a sponsored worker. Similarly, the Certificate of Sponsorship fee for a Skilled Worker, where that Certificate was assigned on or after 31 December 2024 cannot be paid or recouped from the Skilled Worker, and the Immigration Skills Charge for a Skilled Worker or a Senior or Specialist Worker, must also be paid by the company. Please see our article Skilled Worker Sponsor Licence: New Rules on Pay and Fees for further information.
In the event that a sponsored migrant fails to work for the full duration of their CoS (e.g. sponsored for 5 years but works for 2 years) it is possible to get a partial refund for the years not worked. ISC payments are also refunded in the event that a visa application is refused or withdrawn, or the migrant does not come to work for the sponsoring company.
5. Priority Fees
Companies may wish to avail themselves of priority processing fees for the sponsor licence application itself, or for requesting new in-year CoS allocations within the UK.
The pre-licence priority sponsor licence service can reduce processing times for a sponsor licence application from around 8 weeks as standard, to within 10 working days. The fee for this priority service is £500 per request.
6. Visa Application Fees
These vary depending on the length of the CoS – whether this is up to / longer than 3 years, and whether or not the job is on the shortage occupation list.
Current application fees per person are:
| In-country | CoS valid up to 3 years | CoS valid 3+ years |
|---|---|---|
| Skilled Worker
(and any dependants) |
£885 | £1751 |
| Skilled Worker with Shortage Occupation CoS (and any dependants) | £590 | £1160 |
| Health and Care visa
(and any dependants) |
£304 | £590 |
| Health and Care visa Shortage Occupation CoS
(and any dependants) |
£304 | £590 |
| Entry clearance | CoS valid up to 3 years | CoS valid 3+ years |
|---|---|---|
| Skilled Worker
(and any dependants) |
£769 | £1519 |
| Skilled Worker with Shortage Occupation CoS (and any dependants) | £590 | £1160 |
| Health and Care visa
(and any dependants) |
£304 | £590 |
| Health and Care visa Shortage Occupation CoS
(and any dependants) |
£304 | £590 |
The Skilled Worker may choose to rely on standard processing of their immigration application, or may wish to purchase priority processing services at additional cost. The relevant fees depend where an application is being submitted and the level of priority processing.
7. Immigration Health Surcharge (IHS)
The Immigration Health Surcharge (IHS) is a fee that migrants incur when applying for a visa in excess of 6 months.
The IHS is set at:
- £1035 per year for most adult migrants;
- £776 per year for students and those on the Youth Mobility Scheme;
- £776 per year for children under the age of 18.
8. The End of the Resident Labour Market Test (RLMT) for Skilled Worker Sponsorship
Happily, while people have often heard about the Resident Labour Market Test (RLMT) and expect it to be relevant, since the Skilled Worker route replaced Tier 2 General, the RLMT no longer exists. This means that unnecessary costs of advertising and recruitment are not incurred due to immigration requirements alone, though of course companies may incur such fees during their search for appropriate talent.
However, for Health and Care Workers, this has been re-introduced to a limited extent as covered by SW6.1C, requiring the Sponsor to have tried to recruit "from the pool of Skilled Workers" who:
- are in the UK;
- were last sponsored in an occupation code in SW 6.1B; and
- are in need of new sponsorship because their sponsor has lost its licence or has not provided sufficient work , or have been identified by the relevant regional or sub-regional partnership (set up for the purpose of delivering activity which prevents and responds to exploitative employment practices with international recruitment of care staff, in the area in which the sponsor is located or recruiting) as a worker requiring assistance in obtaining new sponsorship;
and to provide evidence of their attempts.
9. Legal and Compliance Costs
Navigating the complexities of immigration law and ensuring compliance with all Rules and Guidance can be challenging. Many companies opt to seek legal advice and engage assistance to manage the sponsor licence application and sponsoring process efficiently. Costs can vary, depending on the complexity of your case and the number of Skilled Workers to be sponsored.
10. Contact Our Immigration Barristers
For expert advice and assistance with any business immigration matter, contact our business immigration barristers on 0203 617 9173 or complete our enquiry form below.
11. Frequently Asked Questions
What is a Sponsor Licence and why would I need one?
A Sponsor Licence is required for UK businesses to sponsor foreign workers under the Skilled Worker route. It is mandatory for any company looking to hire overseas talent where the workers do not otherwise have visas.
What are the costs associated with obtaining a Sponsor Licence?
The costs are as follows:
- Small businesses and charities: £574
- Medium or large businesses: £1,597
These fees are paid to the Home Office when applying for the licence.
What is a Certificate of Sponsorship (CoS) and how much does it cost?
A Certificate of Sponsorship (CoS) is required to sponsor a Skilled Worker. The cost is £525 per CoS, whether the worker is applying for entry clearance or leave to remain in the UK.
What is the Immigration Skills Charge (ISC)?
The Immigration Skills Charge is an additional fee that sponsoring businesses must pay when sponsoring a Skilled Worker.
- £364 per year for small or charitable organisations
- £1,000 per year for medium or large businesses
Are there any additional fees for priority processing?
Yes, there is a priority processing fee of £500 per request to speed up the sponsor licence application or £200 for the post-licence priority requests.
How much do visa application fees cost for Skilled Workers?
Visa application fees depend on the length of the CoS and whether the job is on the Immigration Salary List:
- For in-country applications (not health and care / Immigration
Salary List ):
- CoS valid up to 3 years: £885
- CoS valid for 3+ years: £1,751
- For entry clearance applications (not health and care /
Immigration Salary List ):
- CoS valid up to 3 years: £769
- CoS valid for 3+ years: £1,519
What is the Immigration Health Surcharge (IHS)?
The IHS is a fee paid by migrants applying for a visa longer than six months.
- £1,035 per year for most adult migrants
- £776 per year for students and Youth Mobility Scheme participants
- £776 per year for children under 18
Is the Resident Labour Market Test (RLMT) required for Skilled Worker sponsorship?
No, the RLMT no longer exists since the Skilled Worker route replaced Tier 2 General. This means companies do not need to bear the costs of advertising or recruitment for immigration purposes.
For health and care roles there is now the requirement to recruit from the pool of Skilled Workers who are in the UK and are in need of new sponsorship due to their previous employer losing their licence or providing insufficient work. Please see our previous articleon the topic.
How can legal advice help with Skilled Worker sponsorship?
Legal support can guide businesses through the complexities of immigration law, ensuring compliance with sponsor duties and managing the sponsor licence application process efficiently.
What should I do if I need help with my Skilled Worker sponsorship application?
If you need expert assistance with Skilled Worker sponsorship, you can contact our immigration barristers for tailored advice and support.
12. Glossary
Sponsor Licence: A licence that UK businesses must obtain to sponsor foreign workers. It is issued by the Home Office and Skilled Worker licences are valid indefinitely.
Certificate of Sponsorship (CoS): A document that employers issue to a foreign worker to confirm they are sponsoring them under the Skilled Worker route. A CoS must be used within three months once assigned.
Immigration Skills Charge (ISC): An additional fee that employers must pay when sponsoring Skilled Workers. The amount varies depending on the size of the business.
Priority Processing: A service that allows businesses to speed up the processing of sponsor licence applications or Certificate of Sponsorship allocations for an additional fee.
Visa Application Fees: Fees paid by applicants for visas. These vary depending on the duration of the visa and whether the job is listed on the Immigration Salary List or is in a health and care role.
Immigration Health Surcharge (IHS): A fee that migrants must pay when applying for a visa longer than six months. It contributes to the National Health Service (NHS) costs.
Resident Labour Market Test (RLMT): A test that required employers to advertise job roles to ensure there were no suitable settled workers before hiring a migrant. This has been abolished for Skilled Worker sponsorship.
Legal and Compliance Costs: Expenses related to hiring legal professionals to navigate immigration law and ensure the sponsor's compliance with regulations.
Sponsor Duties: The responsibilities that businesses must adhere to when sponsoring a migrant, including record-keeping, monitoring, and reporting to the Home Office.
Entry Clearance: The process by which a person outside the UK applies for a visa to enter the country.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
