Sponsor Licence and UK Immigration Update: Higher Costs, Tougher Compliance, and Major Rule Changes Ahead

UK immigration update: iconic Big Ben clock tower with Union Jack flag reflecting recent changes to immigration sponsorship rules

Written By Andrew Nyamayaro, Solicitor, Tann Law Solicitors

UK immigration sponsorship is becoming more expensive, more heavily monitored, and more technical. 

Over the last few months, the Home Office has increased key sponsor-related fees, updated the Sponsor Guidance, and signalled further immigration updates for 2026 that will affect employers and migrant workers alike. 

For businesses that rely on overseas recruitment, the message is clear: budgeting is no longer enough. A practical compliance strategy is essential to protect your sponsor licence and avoid refusals or enforcement action.

What Has Already Changed?

Increases to the Immigration Skills Charge

One immediate change is the increase to the Immigration Skills Charge, which rose by 32% from 16 December 2025. 

The charge is now £480 for small or charitable sponsors for the first 12 months and £240 for each additional 6 months.

For medium or large sponsors, it is now £1,320 for the first 12 months and £660 for each additional 6 months. 

This is a significant uplift in the cost of sponsoring workers and will impact workforce planning, particularly where employers sponsor multiple roles or longer periods of leave. In practice, this means sponsors should think carefully about timing and length of Certificates of Sponsorship (CoS), as well as the cost implications across departments and projects.

Increase in Prices for Priority Services

The pre-licence priority service, which aims to provide a sponsor licence decision within 10 working days, increased from £500 to £750 on 11 November 2025. 

The post-licence priority service, commonly used for urgent changes and certain CoS-related requests, rose from £200 to £350 on the same date.

These increases matter because priority processing is not just a “nice to have” for many businesses. It can be critical where start dates, mobilisation, and client delivery depend on immigration timelines. The difficulty is that priority slots are limited and can be hard to secure, meaning organisations should not build business-critical timelines on the assumption that priority will be available.

Changes to Right to Work Checks

Alongside the fee increases, the Home Office updated Sponsor Guidance on 11 November 2025 (Parts 1, 2 and 3, and Appendix D). A key point is right-to-work (RTW) checks. 

The guidance clarifies that when conducting an online RTW check, sponsors must use the “check a job applicant’s right to work” service. The updates also reflect the continued rollout of eVisas and the gradual phasing out of vignettes, with further clarification on how to confirm a worker’s date of entry where there is no entry stamp in the passport.

This matters because entry evidence may be unclear where individuals enter via the Common Travel Area, travel as EU/EEA nationals using eGates, or where technical issues arise. Sponsors should treat RTW as a compliance system, not an admin task. Civil penalties for illegal working can be substantial, and Home Office scrutiny often focuses on whether checks were carried out in the correct format and at the correct time. Where staff transfer from another business, it may be said that the other employer carried the original responsibility, but prudent sponsors should obtain written confirmation and, where appropriate, carry out fresh checks to reduce risk.

Future UK Immigration Updates

From February 2026, Electronic Travel Authorisation (ETA) is expected to become mandatory for visitors from 85 countries, with implementation stated as 25 February 2026. 

Looking further ahead, April 2026 is expected to bring an “earned settlement” overhaul. Proposals indicate a move from a 5-year route to Indefinite Leave to Remain (ILR) to a 10-year qualifying period for many, with a possible 15-year pathway for lower-skilled roles. 

Higher salary thresholds and B2 English are also expected to feature, alongside the launch of a Fair Work Agency to enforce employment and immigration laws. For sponsors, these changes have HR and retention implications: the settlement “reward” may take longer and require higher standards, which in turn affect recruitment messaging and long-term workforce planning.

Finally, sponsors should be aware of current practical problems seen in day-to-day operations. Delays in CoS allocations are continuing. Priority slots remain scarce, with limited daily availability and no reliable formula for securing them. Audits, suspensions, and revocations are being seen more frequently. 

Common compliance failures include:

  • Failing to update sponsor details with the Home Office, such as new branches or changes to key personnel.
  • Improperly managing corporate activity, including mergers, acquisitions, restructurings, and changes of ownership. 
  • Internal promotions can create risk if the role changes are not assessed and reported correctly. 
  • Sponsors should also keep in mind the likelihood of new salary rates in April 2026 for new CoS, as issuing a CoS at the wrong level can create avoidable refusals and compliance exposure.

Employers that approach sponsorship as a living compliance framework supported by documented procedures, training, and timely reporting are best placed to manage the increased cost and rising Home Office scrutiny.

Prepare Your Business for UK Immigration Updates

With significant rule changes about to hit UK immigration in 2026, now is the time to review your business’s sponsor licence compliance.


For advice on sponsor licence compliance, CoS strategy, Home Office audits, or managing organisational changes, contact Andrew Nyamayaro, Solicitor, Tann Law Solicitors

Tel: 0247 763 2323

Email: info@tannlaw.co.uk

WhatsApp: 0044 7421 429338.

Disclaimer


This article is for general information only and does not constitute legal advice. Immigration law, sponsor guidance, and Home Office practice change frequently, and the appropriate approach depends on the specific facts and documentation. No responsibility is accepted for reliance on this article without obtaining advice tailored to the circumstances.

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