The Government has confirmed that the Immigration Skills Charge will rise on 16 December 2025.
This is the first increase since the charge was introduced in 2017 and represents an uplift of around 32 percent for most employers who sponsor overseas workers. The new rates form part of the Immigration Skills Charge Amendment Regulations 2025, laid before Parliament on 15 October 2025.
What the Immigration Skills Charge is and how it works
The Immigration Skills Charge is a compulsory fee paid by the employer when assigning a Certificate of Sponsorship for a
Skilled Worker or a Senior or Specialist Worker. The fee is paid upfront in one lump sum at the time the Certificate of Sponsorship is issued. The charge is linked to the length of employment set out in the Certificate of Sponsorship.
The charge is calculated as a fixed sum for the first twelve months of sponsorship. Any additional time is charged in six month blocks. For example:
• A Certificate of Sponsorship covering one year and four months will attract a charge for eighteen months.
• A Certificate of Sponsorship covering one year and seven months will attract a charge for twenty four months.
If the worker applies for entry clearance from outside the UK and will work for less than six months, the employer does not pay the charge. If the worker applies from inside the UK, the charge is payable whatever the length of sponsorship unless an exemption applies.
New rates from 16 December 2025
The new rates apply to all Certificates of Sponsorship assigned on or after 16 December 2025.
First twelve months
• Medium or large sponsors: rising from £1,000 to £1,320
• Small or charitable sponsors: rising from £364 to £480
Each additional six months
• Medium or large sponsors: rising from £500 to £660
• Small or charitable sponsors: rising from £182 to £240
The cost is determined by the date the Certificate of Sponsorship is assigned, not the visa application date.
How a small company is defined
An employer is treated as a small company if it meets two of the following:
• Turnover of no more than £15 million
• Balance sheet total of no more than £7.5 million
• No more than fifty employees
Why timing matters
If a Certificate of Sponsorship is assigned before 16 December 2025, the current lower rate is locked in even if the worker submits their visa application later. Any Certificate of Sponsorship assigned on or after that date must be charged at the higher rate.
Employers planning overseas recruitment should review their timelines now and consider assigning Certificates of Sponsorship earlier where appropriate.
-
Assign CoS on 15 December 2025: You pay the Old Rate (e.g., £364/year for small companies).
-
Assign CoS on 16 December 2025: You pay the New Rate (e.g., £480/year for small companies).
Updated exemptions from the charge
From 16 December 2025, the following occupations will be exempt from the charge:
• Chemical scientists
• Biological scientists
• Biochemists and biomedical scientists
• Physical scientists
• Social and humanities scientists
• Natural and social science professionals not elsewhere classified
• Research and development managers
• Other researchers not linked to a specific discipline
• Higher education teaching professionals
• Clergy
• Sports players
• Sports coaches, instructors and officials
The exemption also applies when a worker moves from a student visa to Skilled Worker or Senior or Specialist Worker, and when they extend their stay in the same job with the same employer.
Exemptions for the Senior or Specialist Worker route
No charge is due for Senior or Specialist Workers where all of the following conditions are met:
• The worker is an EU national or holds a Latvian non citizen passport
• They normally work for the sponsor’s EU business
• Their assignment in the UK is temporary and lasts no longer than three years
Changing job roles within the same organisation
A new Certificate of Sponsorship may be needed when a sponsored worker changes job and moves to a different SOC code. If there is an overlap between the old certificate and the new one, the employer will not pay the charge twice for the same period. The employer will only need to pay the difference for any period not covered by the earlier certificate.
The charge cannot be passed to the worker
Although some employers share certain visa costs with staff, the Immigration Skills Charge cannot be recovered from the worker. The fee for assigning a Certificate of Sponsorship also cannot be passed to the employee.
Refunds
Employers may receive a refund if the worker leaves earlier than planned. The refund is based on unused six month periods. For example, if a worker was sponsored for two years but left after fourteen months, the employer should receive a refund covering one unused six month block. The Home Office must be informed of the worker’s last day through the Sponsor Management System for the refund to be issued.
What the increase means for employers
The rise is significant and will add noticeable cost to long term sponsorship. Over a five year period, the total charge will rise from:
• £5,000 to £6,600 for medium and large sponsors
• £1,820 to £2,400 for small or charitable sponsors
The increase comes at a time when many sectors already face skills gaps and pressure on budgets. Employers may wish to consider assigning Certificates of Sponsorship before the increase and requesting the maximum sponsorship period where suitable.
How Nara Solicitors can help you
The upcoming increase places extra responsibility on employers to plan ahead and ensure assignments are made at the right time. Our immigration team at Nara Solicitors can guide you through these changes and help reduce the impact on your recruitment plans.
If you would like tailored advice or help with sponsorship planning before 16 December 2025, speak with Nara Solicitors for clear and reliable support.
Book a consultation with us now
