UK Immigration Skills Charge to Rise by a Third from 16 Dec 2025 (14 November 2025)

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.

About the author:

Alessandra Vinciarelli Michelangeli is a Solicitor in the Business and Private Immigration team at Duncan Lewis Solicitors, based in the City of London office and working under the supervision of Director Vicash Ramkissoon.

She handles a broad range of immigration matters, including British nationality applications, Skilled Worker visa applications, in-country extensions across multiple visa categories, family and spouse visas, sponsorship licence applications, and visit visa applications. She has experience advising both individuals and businesses, providing clear, practical guidance throughout each stage of the immigration process.

Contact her via email at AlessandraM@Duncanlewis.com or by telephone at 020 3114 1144

About Duncan Lewis Business Immigration Solicitors

Ranked in The Legal 500 for excellence in Business and Private Immigration, Duncan Lewis Solicitors supports individuals, businesses, and educational institutions across the full spectrum of UK immigration law. Our experienced team delivers strategic advice on visas, sponsorship, and complex Home Office compliance challenges.