The UK Home Office has announced that the Immigration Skills Charge (ISC) will rise by 32% later this year.
The ISC, which is paid by the employers in the UK sponsoring Skilled Worker or Senior or Specialist Worker visa holders, was done in a bid to make sure that a part of the economic gain of employing foreign professionals is reinvested in the process of training the local workforce.
Currently, medium or large sponsors pay £1,000 for the first 12 months of sponsorship and £500 for every additional six months. Under the new rule, this will rise to £1,320 for the first 12 months and £660 for each additional six months.
The Home Office also detailed that the increase is aimed at encouraging employers to invest in British talent first and to reduce reliance on foreign labour.
However, the ISC will not apply if a UK employer is sponsoring someone who is switching from a student visa to either a Skilled Worker or Senior or Specialist Worker visa.
The charge, by law, must be paid by the employer, not the sponsored worker. Any company that attempts to pass on the cost to the employee could face license revocation, under the UK’s May 2025 White Paper on Immigration.
