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In an almost first-ever, the UK Government has recently announced an unprecedented rise to the Immigration Skills Charge (or 'ISC'), coming into effect 16 December 2025.
Policy Background and Objectives
This represents the first substantial increase to the ISC since its introduction and forms part of the Government's broader policy outlined in the 2025 White Paper, Restoring Control over the Immigration System, to reduce reliance on migrant labour while promoting the development of domestic skills.
What Is the Immigration Skills Charge?
The ISC is a mandatory fee paid by all licensed sponsors when assigning a Certificate of Sponsorship (CoS) to a migrant worker under the Skilled Worker or Senior or Specialist Worker routes.
New ISC Rates Effective 16 December 2025
From 16 December 2025, the ISC will increase by 32%, with the new rates set as follows:
- Medium and large sponsors: ISC rising from £1,000 to £1,320 per sponsored worker per year
- Small and charitable sponsors: ISC rising from £364 to £480 per sponsored worker per year
Financial Impact on Sponsors
This first-ever major increase in the ISC is expected to have considerable financial implications for Sponsors, particularly within sectors facing acute skills shortages such as healthcare, engineering, construction, technology, and hospitality.
Exemptions from the Immigration Skills Charge
Certain categories remain exempt from the Immigration Skills Charge, including:
- Prospective Workers switching from a Student visa to a Skilled Worker visa within the UK
- Prospective Workers in Graduate training programmes
- Scientific, academic and research-based occupations
- Ministers of religion and related roles
- PhD-level occupations, regardless of employer size or employment duration
How We Can Help
Should any current and prospective sponsor have any specific query relating to this, our specialised Business Immigration Team can assist and support in navigating the evolving sponsorship landscape, advising on eligibility for exemptions and ongoing compliance requirements.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
