The UK government has announced a significant upcoming change to the Immigration Skills Charge (ISC), scheduled to take effect in mid-December 2025.
This increase forms part of a broader set of reforms to the UK’s immigration system, designed to balance the needs of the labour market with the government’s goal of reducing overall migration and encouraging investment in domestic skills.
For employers who sponsor skilled workers under the UK’s Skilled Worker or Global Business Mobility routes, this update will have direct financial implications. It is therefore crucial to understand what the Immigration Skills Charge is, why it is increasing, and how to plan ahead to minimise disruption and additional costs.
Start Your UK Business Journey Today
What Is the Immigration Skills Charge?
As part of a larger initiative to encourage firms to invest in the UK workforce while controlling immigration levels, the UK government launched the Immigration Skills Charge (ISC) in April 2017.
Essentially, the charge serves two main purposes:
- To fund skills development and training programs for UK workers.
- To encourage employers to prioritise local recruitment before hiring internationally.
Employers who fail to pay the charge when required will face non-compliance issues, which could jeopardise their sponsor licence and future ability to employ international talent.
The 2025 Increase: What Has Been Announced?
The UK Immigration Skills Charge Rising 32% in December 2025
the government stated, starting in mid-December 2025. These are the new anticipated yearly rates:
- Large sponsors: £1,320 per year (up from £1,000 per year)
- Small sponsors and charities: £480 per year (up from £364 per year)
Each sponsored worker, per sponsorship year, is subject to the increase. For instance, if a big business sponsors a worker for a three-year visa, the entire cost will be £3,960 (£1,320 x three years), which must be paid in full at the beginning of the sponsorship.
Why Is the Immigration Skills Charge Increasing?
At present, the annual charge is set at the following rates:
- Large sponsors: £1,000 per year
- Small sponsors / charities: £364 per year
For the duration of the visa, this amount must be paid in full at the moment a Certificate of Sponsorship (CoS) is assigned. For instance, a corporate sponsor now has to pay £3,000 in ISC fees to sponsor a skilled worker for three years.
Projected New Rates from Mid-December 2025
A 32% rise in the Immigration Skills Charge has been announced by the government and is slated to go into effect in mid-December 2025. The following are the anticipated new rates:
- Large sponsors: £1,320 per year
- Small sponsors / charities: £480 per year
For companies sponsoring employees for several years or across big teams, this rise amounts to a significant additional expense. For example, a three-year skilled worker visa would cost large sponsors £3,960 in ISC fees under the revised rates, while the present system charges £3,000.
Who Will Be Affected?
The ISC increase will affect any UK employer sponsoring workers under visa categories where the charge applies. These include:
- Skilled Worker visas
- Global Business Mobility – Senior or Specialist Worker visas
It does not apply to all visa categories. Exemptions currently include:
- Graduate visas
- Student visas
- Seasonal Worker visas
Intra-company transfers for PhD-level roles (in certain cases)
The companies most impacted by this rise will be those that sponsor a large number of skilled workers or have continuous sponsorship agreements.
Small companies and nonprofit organisations may nevertheless see a significant budgetary impact even though they will face a smaller absolute rise, especially if they depend on sponsored employees to carry out critical functions.
How Adam Bernard Solicitors Can Help
Our immigration team at Adam Bernard Solicitors specialises in helping people and employers navigate every step of the UK immigration process. We can help with:
- Sponsor licence applications and renewals
- Skilled Worker sponsorship and compliance audits
- Visa applications and legal representation
Our expert solicitors can help your organisation prepare for the upcoming Immigration Skills Charge increase and ensure full compliance with all 2026 immigration reforms.
Frequently Asked Questions
What is the Immigration Skills Charge?
It’s a fee employers pay when sponsoring a foreign worker under specific visa routes.
When will the new rates take effect?
From mid-December 2025.
Who pays the Immigration Skills Charge?
The employer, not the employee, must pay the charge.
Which visa routes require the ISC?
It mainly applies to the Skilled Worker and Global Business Mobility visa routes.
How much will large sponsors pay from December 2025?
£1,320 per sponsored worker, per year.
How much will small sponsors or charities pay?
£480 per sponsored worker, per year.
Can employers pass the ISC cost to the worker?
No. Employers must pay the charge themselves; passing it on is prohibited.
What happens if an employer fails to pay the ISC?
The sponsorship application will be refused, and the CoS invalidated.
Where can I get professional advice on the Immigration Skills Charge?
Contact Adam Bernard Solicitors for expert legal assistance with sponsorship, compliance, and immigration planning.
