Sponsorship Licence Fee Increase

The cost of hiring international talent in the UK has risen significantly following the April 2024 sponsorship licence fee increases. The UK government’s new fee structure has made it more expensive for businesses to obtain and maintain a sponsorship licence, impacting SMEs and larger corporations alike. These changes pose financial and operational challenges for businesses that rely on overseas workers.

At NA Law Solicitors, we provide expert legal support to help UK businesses navigate these rising costs, ensure compliance, and implement cost-effective sponsorship strategies.

How Have Sponsorship Licence Fees Increased?

The government’s rationale for the fee hikes is to shift the financial burden of immigration onto employers who benefit from hiring skilled overseas workers. While fee changes vary depending on business size and visa type, key increases include:

• Sponsorship Licence Application Fees: The initial cost for businesses applying for a sponsorship licence has risen significantly, making it more expensive to become a registered sponsor.
• Certificate of Sponsorship (CoS) Fees: Businesses now pay more per worker to assign a CoS, increasing overall hiring expenses.
• Skilled Worker Visa Costs: The Skilled Worker route—one of the most commonly used sponsorship routes—has seen higher costs across the board.
• Immigration Skills Charge: This remains a major financial factor for businesses, and increased fees put further strain on employers.

Accurate, up-to-date information on these fees is essential. Contact NA Law Solicitors today for the latest fee breakdown and tailored legal guidance.

The Impact on UK Businesses

The increased sponsorship fees create several challenges for businesses across the UK

Financial Strain for SMEs

Small and medium-sized enterprises (SMEs), which often operate on tighter margins, may find it difficult to absorb rising sponsorship costs. This could limit their ability to compete with larger firms for international talent.

Reduced Hiring of Skilled Workers

Faced with higher costs, businesses may need to be more selective in hiring overseas workers, leading to delayed or cancelled recruitment plans. Some industries, particularly those with skills shortages, will struggle to attract the right talent.

Compliance Risks & Financial Penalties

With a higher investment in sponsored workers, compliance with UK Home Office regulations is more critical than ever. Errors in record-keeping, monitoring, or reporting can lead to licence suspension, civil penalties, or even revocation—costing businesses time, money, and reputational damage.

 Increased Administrative Burden

Employers must now budget more carefully for recruitment, monitor costs, and ensure all sponsorship duties are met. Failing to comply with new regulations could result in financial penalties or the loss of the sponsorship licence.

NA Law Solicitors offers expert legal guidance to ensure your business remains compliant and cost-efficient in the face of rising sponsorship fees.