The Immigration Skills Charge is rising for the first time since its introduction in 2017, increasing the cost to sponsor an overseas worker under certain UK work visa routes by around one third.
The effective date of 16 December 2025 has been formally confirmed in the Immigration Skills Charge (Amendment) Regulations 2025 (SI 2025/1078), which were laid before Parliament on 15 October 2025.
Immigration Skills Charge Increasing from 16 December 2025
The Immigration Skills Charge is a mandatory fee paid by most UK employers when sponsoring overseas workers under either the Skilled Worker or the Global Business Mobility Senior or Specialist Worker visa routes. The charge is paid up front when a Certificate of Sponsorship is assigned, and the rate depends on the size and type of sponsoring organisation.
From 16 December 2025, the Immigration Skills Charge rate for medium and large sponsors will rise from £1,000 to £1,320 per worker for the first 12 months, with each additional six months increasing from £500 to £660. For small or charitable sponsors, the rate will rise from £364 to £480 for the first 12 months, and from £182 to £240 for each further six-month period.
| Charge period | Pre-16 Dec 2025 (Medium/Large) | Pre-16 Dec 2025 (Small/Charitable) | From 16 Dec 2025 (Medium/Large) | From 16 Dec 2025 (Small/Charitable) |
|---|---|---|---|---|
| First 12 months | £1,000 | £364 | £1,320 | £480 |
| Each additional 6 months | £500 | £182 | £660 | £240 |
The new rates will apply to Certificates of Sponsorship assigned on or after 16 December 2025. Employers assigning a CoS before that date will continue to pay the current lower rates, even if the visa application itself is submitted later. This is based on the Home Office sponsor guidance, which makes clear that the ISC liability is determined at the point of assignment and that sponsors are required to pay the correct rate based on that date.
As such, if the CoS is assigned before 16 December 2025, the current lower rate will apply, even if the visa application itself is submitted later. If the CoS is assigned on or after 16 December 2025, the new higher rates will apply regardless of when the application is made.
Employers should therefore review upcoming assignments carefully and, where appropriate, consider bringing forward CoS allocation to benefit from the current rate.
ISC Exemptions
The new rules also include more ISC-exempt occupations.
From 16 December 2025, CoS’ assigned for roles in the following occupations will be exempt from the ISC: 2119 (natural and social science professionals n.e.c.), 2161 (research and development managers), 2162 (other researchers, unspecified discipline), 2311 (higher education teaching professionals), 2463 (clergy), 3431 (sports players), and 3432 (sports coaches, instructors and officials).
Impact on Employers
The increase represents a 32 per cent rise on the previous rates, uplifting the total cost of sponsorship. Over a five-year period, the total Immigration Skills Charge for a large sponsor will increase from £5,000 to £6,600 per sponsored worker, while small and charitable sponsors will see a rise from £1,820 to £2,400. For organisations that rely heavily on overseas talent, this is a substantial increase in expenditure and while the charge may already be treated as a standard cost of hiring internationally, the higher rates will require re-budgeting.
In immediate terms, for roles due to be filled before the end of the year, sponsors should consider whether the CoS can be assigned earlier to secure the current rate. This, of course, is contingent on the sponsor licence being in place. Taking advice now on specific roles and applications will help you understand if the process can be fast-tracked to beat the mid-December increase.
In compliance terms, failing to pay the correct fee or mis-timing a CoS assignment could result in Home Office non-compliance findings, so it will be important to ensure internal personnel and processes are updated of the increases.
Looking longer-term, the higher upfront cost will need to be reflected in budget and workforce planning. For some organisations, it may influence the decision to shorten assignments or consider alternative immigration or recruitment solutions.
DMS Perspective
Through the charge increase, the Government is looking to fund domestic skills programmes from higher sponsor contributions. However noble the cause, employers that rely on the sponsorship system as a core part of their workforce model will need to act to manage exposure to the cost uplift while ensuring talent mobility and workforce stability.
At DavidsonMorris, we are supporting employers to understand the immediate and longer-term impact of the higher ISC. We are working with sponsors to review pipeline roles and bring forward CoS assignments to benefit from the current lower rates, and in other cases, to explore hybrid solutions such as short-term transfers. Remember also that the employer needs a valid sponsor licence before the CoS can be assigned.
From a compliance and workforce-planning perspective, recruitment strategies should be reassessed to ensure overseas hires remain commercially viable. Recruitment approval processes and budgets will also need to be updated to reflect the higher rates, and it will be important to brief hiring managers and global mobility teams on the effective date and compliance rules.
Need Assistance?
For advice on the impact of the upcoming increase to the ISC, such as expediting CoS assignments, and to understand the wider, strategic impact of the higher costs on your sponsorship plans, contact us.
