21/10/2025
The 2025 Immigration White Paper proposals continue to have a significant impact on the sponsorship of workers – this time with financial implications for employers who hire non-settled staff. The draft Immigration Skills Charge (Amendment) Regulations 2025 were laid before Parliament on 15 October 2025. Subject to Parliamentary approval, the Immigration Skills Charge (ISC) will increase by 32% for Certificates of Sponsorship (CoS) assigned from 16 December 2025.
The ISC applies to Skilled worker and Global Business Mobility (GBM) immigration work routes and is paid by the sponsoring employer, upfront, based on the length of sponsorship. Sponsorship guidance updated at the end of 2024 defined ‘sponsorship costs’ and prevents ISC costs from being passed on to, or recouped from the sponsored workers.
New rates from 16 December 2025
- Medium/large companies: £1,320 (increased from £1,000) per 12 months, £660 (increased from £500) for each subsequent six-month period.
For example, a three-year ISC will increase from current £3,000 to £3,960 and for a five-year visa, it will increase from current £5,000 to £6,600.
- Small companies or charities: £480 (increased from £364) per 12 months, £240 (increased from £182) for each subsequent six-month period.
This rise will increase the overall cost of sponsorship, and it is likely to place an additional cost burden on employers.
Actions for Employers
- Review recruitment pipelines and extensions of any existing employees, and where appropriate, assign the CoS before 16 December 2025 to lock in the current lower rate.
- Inform HR and administrative teams about the upcoming rise in costs so they can plan budgets from 2026 onwards.
- Update internal policies to comply with the revised sponsorship costs.
- Seek professional support with assigning certificates in advance of the changes and to review upcoming visa end dates to consider whether applications can be brought forward.
