Immigration update – Recent Home Office announcement to employers

Increase in the CoS fee

There are over 100,000 businesses registered with the Home Office to sponsor employees requiring a visa to work in the UK and last week new measures were announced that will significantly increase the cost of sponsoring an overseas worker for a work visa. Under the new plans, the cost of assigning a Certificate of Sponsorship (CoS) will more than double, rising from £239 to £525. Once this is combined with the Immigration Skills Charge of either £364 or £1,000 per year of the sponsorship (depending on the size of the employer), it will become considerably more expensive for employers to sponsor skilled workers who wish to come to or stay in the UK for work.

The Home Office intends to implement these changes as soon as the legislative process is complete and so it will not be long before the costs rise. Therefore, we recommend that any employers actively using their sponsor licence should review their current sponsored workforce and visa expiry dates to see if they can expedite their sponsorship renewals before the fee rise. Furthermore, employers who are looking to recruit sponsored workers should consider accelerating the sponsorship process in order to avoid the upcoming steep cost increases.

Roll out of the ETA

The Electronic Travel Authorisation (ETA), which was introduced last year and rolled out to EU nationals on 8 January 2025, has already seen its first price increase. This is somewhat surprising given the scheme has not been fully rolled out and the requirement to have a valid ETA when entering the UK will be mandatory. The increased charges will see the cost of obtaining an ETA rise from £10 to £16. Although this may appear only a modest increase, the 60% hike so early in the implementation of the programme is likely to raise concerns for employers with a high number or frequent business travellers to the UK.

If you are interested and would like more information about the ETA, please join us for a specialist masterclass on 25 February 2025, click here for details.