Government Launches Visa Fee Reimbursement Scheme for Scale-Ups
The Government has launched a new funding scheme aimed at helping certain high-growth businesses reduce the cost of recruiting international talent.
The Visa Fees Reimbursement Scheme for Scale-Ups (VFRS4SU) allows eligible employers operating in the Clean Energy, Life Sciences and Digital and Technologies sectors to reclaim visa costs associated with overseas hires and their dependants. Businesses can claim up to £5,000 per international recruit, subject to an annual cap of £25,000.
The scheme launched on 9 June 2026, with applications opening on 16 June 2026. Funding is limited and will be allocated on a first-come, first-served basis.
Who is eligible?
Eligibility is limited to businesses that satisfy the Government’s definition of a scale-up, requiring average annual growth of more than 20% in either turnover or employment over a continuous three-year period, starting with at least 10 employees.
The scheme is not open to all sponsors. Applicants must operate within one of three priority sectors identified by the Government’s Industrial Strategy: Clean Energy, Life Sciences, or Digital and Technologies.
The sector definitions are relatively specific. Clean Energy businesses include organisations involved in the supply chain, manufacturing and services supporting the deployment, construction and maintenance of clean energy assets. Life Sciences businesses include pharmaceutical developers and manufacturers, together with medical technology companies, including digital health providers. The Digital and Technologies category covers businesses developing advanced digital technologies, although technologies falling within other Industrial Strategy sectors, such as Defence, Life Sciences and Clean Energy, are generally excluded from this category.
Applicants must also hold a valid UK sponsor licence, have an established UK business presence and recruit workers through an eligible immigration route. In addition, funding is subject to Department for Business and Trade due diligence and assurance checks.
While the scheme covers Global Talent recruits, who do not themselves require sponsorship, businesses still appear to need a sponsor licence to qualify for funding.
As a result, the scheme is likely to only be relevant to a relatively small group of employers, with many sponsor licence holders expected to fall outside the eligibility criteria because they do not meet the scale-up definition or operate outside the specified sectors.
Which Visa Routes & Costs Are Covered?
The scheme currently applies to recruitment under the:
- Skilled Worker route
- Global Talent route
- Scale-up route
Employers can also claim reimbursement for qualifying dependant applications connected to an eligible hire.
The reimbursement applies to eligible visa fees incurred on or after 9 June 2026. While the headline funding figure of up to £5,000 per hire may appear generous, employers should not assume that the scheme covers the wider costs commonly associated with international recruitment, such as sponsor licence fees, Certificate of Sponsorship charges, Immigration Skills Charge payments or legal costs.
For employers already familiar with the sponsorship system, the practical benefit is therefore likely to depend on the size and nature of the recruitment exercise. The scheme may reduce some upfront costs, but it does not alter the broader financial and compliance obligations associated with employing overseas workers.
How to Apply
Applications are submitted through the Department for Business and Trade’s Grants Hub portal. Businesses will need to provide information about their organisation, qualifying roles and recruitment plans, together with details of eligible hires and visa costs.
The application process requires information including the organisation’s legal details, Companies House registration number, job titles, role descriptions, contract terms, salary information and evidence relating to the relevant visa application and payment of eligible fees.
Successful applicants will enter into a grant funding agreement with the Department for Business and Trade before reimbursement is made. The Government has stated that funding decisions are final and are generally not subject to appeal.
DavidsonMorris Strategic Insight
Recent immigration reforms have generally increased employer costs and compliance obligations, yet the Government is now subsidising visa fees for international recruitment in selected sectors. That suggests future immigration policy may become increasingly targeted, with incentives directed towards industries viewed as strategically important to economic growth, rather than broad reductions in sponsorship costs across the economy.
Need Assistance?
For advice on sponsor licence requirements, international recruitment strategy or eligibility under the Visa Fees Reimbursement Scheme for Scale-Ups, contact DavidsonMorris for a fixed-fee telephone consultation with one of our UK immigration specialists. We advise employers on sponsor licence compliance, workforce planning and business immigration options for recruiting overseas talent.
