From 16 December 2025 the UK’s Immigration Skills Charge (ISC) increases substantially. Medium and large sponsors will pay £1,320 for the first 12 months of sponsorship (up from £1,000); small and charitable sponsors will pay £480 (up from £364). The charge for each additional six-month block also rises (e.g. medium/large: from £500 to £660). This applies when assigning a Certificate of Sponsorship for routes such as the Skilled Worker and relevant business mobility routes. Employers need to update budgets, employment offers, and internal processes now.

What changed (official legal instrument & scope)

The change is implemented by the Immigration Skills Charge (Amendment) Regulations 2025, which come into force on 16 December 2025. The new rates published in that instrument and updated Home Office guidance increase the ISC across sponsor categories. The increase applies to employers when assigning a Certificate of Sponsorship for relevant routes (for example, Skilled Worker and many business mobility visas) subject to existing exemptions.

New headline rates (from 16 Dec 2025)

• Medium & large sponsors: £1,320 for the first 12 months (previously £1,000). Additional six-month tranche: £660 (previously £500).
• Small & charitable sponsors: £480 for the first 12 months (previously £364). Additional six-month tranche: £240 (previously £182).

Who is affected?

• Employers who sponsor workers on the Skilled Worker route and many Global Business Mobility routes. Check your role lists and exemptions, some assignments (e.g., certain intra-company transfers or roles on specified exemption lists) may be excluded or treated differently.

Quick example costings

Suppose a medium-sized employer sponsors a worker for 3 years (36 months):

• Under the new rates: first 12 months = £1,320; the remaining 24 months = two extra 12-month equivalent blocks (or 4 x six-month charges if that’s how applied) in practice for a 3-year visa you can calculate as appropriate, but the headline impact is roughly a 32% uplift to the ISC portion compared to the old rates. (Exact totals depend on the exact months charged and whether the job is over 6/12/24 months.)

Practical steps for employers (urgent checklist)

1. Update budgets & offers: factor the higher ISC into total hiring cost and relocation packages.
2. Review sponsorship strategy: consider whether to absorb the cost or pass a portion to the role’s hiring budget.
3. Audit upcoming CoS assignments: that will be issued after 16 Dec 2025, if possible and legal, consider timing where it makes financial sense (but do not advise applicants to misrepresent travel dates or try to game the system).
4. Check exemptions: some assignments are exempt (e.g., certain intra-company transfers or sponsored global mobility types), so confirm whether the role is liable.
5. Update HR & payroll processes: so ISC payments are recorded and paid correctly to UKVI when assigning a CoS.

Risk & impact

• Cashflow hit for SMEs and charities who already operate on tight margins. The government indicates fee revenue supports training and other public services; critics warn this raises recruitment costs and could worsen skills shortages. See Home Office impact assessments and commentary from industry lawyers.

FAQs

Q: When does the change apply?
A: It comes into force 16 December 2025 (the Amendment Regulations are dated and laid earlier in October 2025).

Q: Does this change the application fee or NHS surcharge?
A: This is a separate charge. Application fees and the Immigration Health Surcharge are handled independently; check the Home Office fees table for changes to those.

Q: Can I avoid the ISC?
A: Some categories and limited exemptions exist. Employers should review the sponsor guidance and specialist legal advice before assuming exemption.