As of 16 December 2025, UK employers sponsoring overseas workers are officially paying more for the Immigration Skills Charge (ISC).
This change has been on the horizon for months, but it is now live — and for many businesses, the financial impact will be immediate.
Whether you’re an HR leader, business owner, or sponsor licence holder, this increase is not just another fee update. It’s a clear signal of where UK immigration policy is heading in 2026 and beyond.
What Has Changed?
From 16 December 2025, the Immigration Skills Charge increased by around 32%, marking the first rise since the charge was introduced back in 2017.
The new rates are:
- £1,320 per sponsored worker per year for medium and large sponsors
(up from £1,000) - £480 per year for small businesses and charities
(up from £364)
For longer sponsorship periods, the cost increase quickly adds up. A five-year Skilled Worker visa now attracts an ISC of £6,600 for a medium or large employer — £1,600 more than before.
And remember: the charge must be paid upfront when the Certificate of Sponsorship (CoS) is assigned.
Why This Increase Matters
This is not a technical adjustment or inflation-only correction.
The Immigration Skills Charge is a deliberate policy tool. By raising it, the government is sending a strong message:
Hiring from overseas should be more expensive, and employers should invest more in training the UK workforce.
The ISC increase sits alongside wider immigration reforms — higher salary thresholds, tougher compliance expectations, and a continued push to reduce reliance on overseas labour.
For employers already struggling with skills shortages, this creates a difficult balancing act.
The Real Impact on Employers
1. Sponsorship Is Now a Bigger Budget Decision
For organisations sponsoring multiple workers, especially in sectors like tech, care, engineering, construction and hospitality, the cost increase is significant. Immigration budgets that worked last year may no longer stack up in 2026.
2. Timing Has Become Critical
Any Certificates of Sponsorship assigned from 16th December 2025 onwards are charged at the higher rate. Employers who missed the 16 December deadline may already be feeling the impact.
Going forward, forward-planning sponsorship will be essential — especially for extensions and new hires.
3. SMEs and Charities Feel This the Most
Although reduced rates still apply to small businesses and charities, the proportional increase is the same. For smaller sponsors with limited margins, this may affect whether sponsorship is viable at all.
4. You Cannot Pass the Cost to the Worker
This is a crucial compliance point: the Immigration Skills Charge must be paid by the employer.
Passing this cost to the sponsored worker is not permitted and could put a sponsor licence at risk.
What Should Employers Be Doing Now?
With the increase already in force, the focus shifts from preparation to damage control and strategy:
- Review upcoming visa extensions and factor in higher ISC costs
- Re-forecast recruitment budgets for 2026
- Audit your sponsor licence usage to ensure every sponsored role is genuinely needed
- Explore exemptions carefully, but don’t assume they apply
- Seek professional advice before making changes that could affect compliance
Mistakes around sponsorship costs and timing are expensive — and increasingly unforgiving.
Final Thought
The Immigration Skills Charge increase is now a reality, not a proposal.
For UK employers, it reinforces a clear truth: Sponsoring overseas workers is becoming more complex, more expensive, and more tightly scrutinised.
Those who adapt early — with smarter workforce planning and compliant immigration strategies — will be far better placed to compete for talent in 2026.