The government has begun taking the final steps to implement increases to the Immigration Health Surcharge (IHS) first announced in the March 2020 Budget.
The IHS supplements funding to the NHS, with over £900 million reportedly collected to the end of the 2018/19 financial year since its introduction in 2015.
The government has now introduced legislation which will change the IHS as follows:
1. An increase for most applicants from £400 per year to £624 per year. The cost of the surcharge in respect of a 3 year visa therefore rises to £1,872, up from £1,200;
2. An increase for dependents under the age of 18 to £470 per year, so that the full effect of the increase will not be applied to these dependants; and
3. An increase from £300 per year to £470 per year for students and those using the youth mobility scheme.
The exact date the increases will apply depends on when parliament approves the measures, but they are expected to apply to applications made in the first week of October onwards.
The vast majority of EU workers who are sponsored within the modified immigration system from 1 January 2021 will have to pay (or their sponsor will have to consider reimbursing them for) this increased charge.