• Insights

Immigration Skills Charge set at £1,000

March 22, 2016

Country / Territory

  • United KingdomUnited Kingdom

Related offices

  • London
  • Sheffield

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Related offices

  • London
  • Sheffield

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Related offices

  • London
  • Sheffield

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn
Last year the UK Home Secretary’s independent advisors, the Migration Advisory Committee, were asked to review how businesses were using the immigration system.  Their review had one main goal – to reduce the number of skilled workers coming to the UK, whether through legal restrictions or financial disincentives.
 
The MAC published their report in January and I, along with my colleagues, have been waiting to hear whether the government will accept their policy recommendations.  Would minimum salaries increase to £30,000 for most skilled work visas, will the minimum salary for third party contractors go up to £41,500 and will there be a £1,000 per year skills charge for each sponsored worker?
 
Normally any announcement is made with a great fanfare – as a Home Office official I sat in on plenty of press conferences where Ministers revealed new policy to a gathered pack of journalists.
 
Yesterday the Home Office took a different approach. Lord Bates, the Home Office Spokesperson in the House of Lords, announced to his fellow peers that the MAC’s recommendation of a £1,000 Immigration Skills Charge (ISC) would indeed be implemented. More specifically, he told them that:
 
  • larger sponsors of Tier 2 migrants will be charged £1,000 per migrant per year, with a reduced rate of £364 per migrant per year for small businesses and charities; and
  • there would be an exemption for graduates switching from Tier 4 to Tier 2, as well as an exemption for migrants undertaking PHD level roles.  He did not provide the precise detail of how those exemption would work in practice.
 
Lord Bates did not reveal a timetable for introducing the ISC, but we would not expect it to take effect before the autumn.  The ISC is just one part of an Immigration Bill that is unlikely to be approved by Parliament before the summer and the provisions would require further legislation to take effect.  It is unlikely that this secondary legislation could be in place before October.
 
In setting the levy at £1,000 the Home Office has accepted advice of the MAC, a recommendation they made in their January 2016 review.  Lord Bates explained that the ISC will be collected by the Home Office, implying that it would be paid up front when a worker is sponsored, as was also recommended by the MAC. 
 
The money would then be reinvested in the upskilling of UK workers.  It is still not clear how that reinvestment would work in practice.  The MAC favour a levy and grant system that sees every company put money in, with companies investing in their staff being paid back grants.  It is too early to say whether it would work like that in practice.
 
The government also hope that the ISC will bring about a 'behavioural change in the way that people think about recruitment'.  Lord Bates asserted that 'for far too long it has been an automatic thought to recruit people from outside the European Economic Area without giving proper attention to whether those skills are there in the resident labour market'. 
 
What about the rest of the MAC’s recommendations?  He gave nothing away, but we would expect to hear more soon.  Next time though, I would expect a little more fanfare when the announcement is made.

Country / Territory

  • United KingdomUnited Kingdom

Related offices

  • London
  • Sheffield

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Related offices

  • London
  • Sheffield

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Related offices

  • London
  • Sheffield

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Explore more at Fragomen

Awards

Partner Karolina Schiffter Recognised in Lexology Index: Thought Leaders Global Elite 2027

Partner Karolina Schiffter is recognised in the Lexology Index: Thought Leaders Global Elite 2027 report.

Learn more

Blog post

Canada’s Immigration Dual Reality: Narrower Access, Persistent Demand

Partner Jack Kim discusses how Canada’s increasingly selective and complex immigration system is affecting talent access, retention and long-term workforce planning for employers.

Learn more

Blog post

UK Temporary Shortage List Review: What the Migration Advisory Committee's Recommendations Mean for Employers

UK Government Affairs Strategy Director Shuyeb Muquit explores what the recommendations mean, what’s still uncertain and what employers should be watching next

Learn more

Blog post

A1-Bescheinigung für Geschäftsreisen und Entsendungen: Was Arbeitgeber wissen müssen

In this blog, Senior Manager Katharina Vorländer explains when employers need an A1 certificate for employees traveling or working temporarily within Europe, the application process and how timely planning can help manage social security compliance risks.

Learn more

Awards

Fragomen Retains Band 1 Ranking & Receives Four Individual Rankings in Chambers High Net Worth 2026 Guide

Fragomen and UK team members are ranked in the “Immigration: High Net Worth Individuals – UK-wide” category of the Chambers High Net Worth 2026 Guide.

Learn more

Blog post

Establishing a Business Presence in Switzerland: Key Considerations for Employers

In this blog, Director Ana Bessa Santos explores what Swiss authorities expect from employers when assessing work permit applications—including why a well-developed business plan, realistic growth projections and evidence of a genuine operational presence are critical to supporting both initial applications and future permit renewals.

Learn more

Media mentions

Personnel Today: Migration Committee Proposes to Cut 24 Occupations From New Shortage List

Partner Louise Haycock discussed the Migration Advisory Committee’s Temporary Shortage List recommendations and the need for clear workforce plans and transitional arrangements.

Learn more

Media mentions

Business Insider: 3 Lawyers React to Trump's New Limits on Student Visas

Counsel Brian Hunt discusses how proposed changes to F-1 student visas could create uncertainty for international students transitioning to the US workforce.

Learn more

Media mentions

Deutscher AnwaltSpiegel: Rechtliche Risiken bei Mitarbeitereinsätzen aus dem Ausland

Senior Manager Katharina Vorländer explains how employers and clients can reduce legal risks during cross-border employee assignments in Germany.

Learn more

Blog post

Mainland vs. Free Zone in the UAE: Choosing the Right Company Structure in 2026

Senior Manager Zak Hynes explores the key factors businesses should consider when establishing a presence in the UAE—from operating model and visa requirements to banking, office needs and long-term growth plans—in our new blog. The right structure is the one that best supports your business strategy, not simply the lowest upfront cost.

Learn more

Video

2026 Regional Immigration Overviews | #MobilityMinute

Partner Catherine Macris highlights key findings from Fragomen’s 2026 regional immigration overviews, including tighter compliance controls, digital border transformation and emerging pathways for global talent.

Learn more

Media mentions

Gazeta Prawna: Unijny parasol nad pracownikami z Ukrainy rozpięty do 2028 r. Polscy pracodawcy mogą spać spokojnie, ale czas ucieka

Partner Karolina Schiffter discusses how the EU's extension of temporary protection for Ukrainian citizens through 2028 will affect employers in Poland.

Learn more

Awards

Partner Karolina Schiffter Recognised in Lexology Index: Thought Leaders Global Elite 2027

Partner Karolina Schiffter is recognised in the Lexology Index: Thought Leaders Global Elite 2027 report.

Learn more

Blog post

Canada’s Immigration Dual Reality: Narrower Access, Persistent Demand

Partner Jack Kim discusses how Canada’s increasingly selective and complex immigration system is affecting talent access, retention and long-term workforce planning for employers.

Learn more

Blog post

UK Temporary Shortage List Review: What the Migration Advisory Committee's Recommendations Mean for Employers

UK Government Affairs Strategy Director Shuyeb Muquit explores what the recommendations mean, what’s still uncertain and what employers should be watching next

Learn more

Blog post

A1-Bescheinigung für Geschäftsreisen und Entsendungen: Was Arbeitgeber wissen müssen

In this blog, Senior Manager Katharina Vorländer explains when employers need an A1 certificate for employees traveling or working temporarily within Europe, the application process and how timely planning can help manage social security compliance risks.

Learn more

Awards

Fragomen Retains Band 1 Ranking & Receives Four Individual Rankings in Chambers High Net Worth 2026 Guide

Fragomen and UK team members are ranked in the “Immigration: High Net Worth Individuals – UK-wide” category of the Chambers High Net Worth 2026 Guide.

Learn more

Blog post

Establishing a Business Presence in Switzerland: Key Considerations for Employers

In this blog, Director Ana Bessa Santos explores what Swiss authorities expect from employers when assessing work permit applications—including why a well-developed business plan, realistic growth projections and evidence of a genuine operational presence are critical to supporting both initial applications and future permit renewals.

Learn more

Media mentions

Personnel Today: Migration Committee Proposes to Cut 24 Occupations From New Shortage List

Partner Louise Haycock discussed the Migration Advisory Committee’s Temporary Shortage List recommendations and the need for clear workforce plans and transitional arrangements.

Learn more

Media mentions

Business Insider: 3 Lawyers React to Trump's New Limits on Student Visas

Counsel Brian Hunt discusses how proposed changes to F-1 student visas could create uncertainty for international students transitioning to the US workforce.

Learn more

Media mentions

Deutscher AnwaltSpiegel: Rechtliche Risiken bei Mitarbeitereinsätzen aus dem Ausland

Senior Manager Katharina Vorländer explains how employers and clients can reduce legal risks during cross-border employee assignments in Germany.

Learn more

Blog post

Mainland vs. Free Zone in the UAE: Choosing the Right Company Structure in 2026

Senior Manager Zak Hynes explores the key factors businesses should consider when establishing a presence in the UAE—from operating model and visa requirements to banking, office needs and long-term growth plans—in our new blog. The right structure is the one that best supports your business strategy, not simply the lowest upfront cost.

Learn more

Video

2026 Regional Immigration Overviews | #MobilityMinute

Partner Catherine Macris highlights key findings from Fragomen’s 2026 regional immigration overviews, including tighter compliance controls, digital border transformation and emerging pathways for global talent.

Learn more

Media mentions

Gazeta Prawna: Unijny parasol nad pracownikami z Ukrainy rozpięty do 2028 r. Polscy pracodawcy mogą spać spokojnie, ale czas ucieka

Partner Karolina Schiffter discusses how the EU's extension of temporary protection for Ukrainian citizens through 2028 will affect employers in Poland.

Learn more
Fragomen.com home
Select Language
  • English
  • French
  • French - Canadian
  • German

Select Language

  • English
  • French
  • French - Canadian
  • German
ContactCareersMediaClient Portal
Search Fragomen.com
  • Our Services
    For EmployersFor IndividualsBy IndustryCase Studies
  • Our Tech & Innovation
  • Our People
  • Our Insights
    Worldwide Immigration Trends ReportsMagellan SeriesImmigration AlertsEventsMedia MentionsFragomen NewsBlogsPodcasts & Videos
  • Spotlights
    Travel and Mobility Considerations: Situation in the Middle EastNavigating Immigration Under the Second Trump AdministrationImmigration Matters: Your U.S. Compliance RoadmapCenter for Strategy and Applied InsightsVietnamese ImmigrationView More
  • About Us
    About FragomenOfficesResponsible Business PracticesFirm GovernanceRecognition

Our Services

  • For Employers
  • For Individuals
  • By Industry
  • Case Studies

Our Tech & Innovation

  • Our Approach

Our People

  • Overview / Directory

Our Insights

  • Worldwide Immigration Trends Reports
  • Magellan Series
  • Immigration Alerts
  • Events
  • Media Mentions
  • Fragomen News
  • Blogs
  • Podcasts & Videos

Spotlights

  • Travel and Mobility Considerations: Situation in the Middle East
  • Navigating Immigration Under the Second Trump Administration
  • Immigration Matters: Your U.S. Compliance Roadmap
  • Center for Strategy and Applied Insights
  • Vietnamese Immigration
  • View More

About Us

  • About Fragomen
  • Offices
  • Responsible Business Practices
  • Firm Governance
  • Recognition
Select Language
  • English
  • French
  • French - Canadian
  • German

Select Language

  • English
  • French
  • French - Canadian
  • German
ContactCareersMediaClient Portal
Important Updates
Important Updates
August 3, 2026 | United StatesUnited States: Somalia TPS Employment Authorization Extended Through August 5
August 3, 2026 | AustraliaAustralia: New Processing Priorities for Certain Visas Announced
August 3, 2026 | ColombiaColombia: Processing Delays and Increased Scrutiny Affecting Work Visa Applications
August 3, 2026 | European UnionEuropean Union/Schengen Area: Internal Schengen Border Checks Situation
August 3, 2026 | United StatesUnited States: Burma TPS Employment Authorization Extended Through August 7
August 3, 2026 | United StatesUnited States: Somalia TPS Employment Authorization Extended Through August 5
August 3, 2026 | AustraliaAustralia: New Processing Priorities for Certain Visas Announced
August 3, 2026 | ColombiaColombia: Processing Delays and Increased Scrutiny Affecting Work Visa Applications
August 3, 2026 | European UnionEuropean Union/Schengen Area: Internal Schengen Border Checks Situation
August 3, 2026 | United StatesUnited States: Burma TPS Employment Authorization Extended Through August 7
August 3, 2026 | United StatesUnited States: Somalia TPS Employment Authorization Extended Through August 5
Subscribe

Stay in touch

Subscribe to receive our latest immigration alerts

Subscribe

Our firm

  • About
  • Careers
  • Firm Governance
  • Media Inquiries
  • Recognition

Information

  • Attorney Advertising
  • Legal Notices
  • Privacy Policies
  • AI Transparency Statement
  • UK Regulatory Requirements

Our firm

  • About
  • Careers
  • Firm Governance
  • Media Inquiries
  • Recognition

Information

  • Attorney Advertising
  • Legal Notices
  • Privacy Policies
  • AI Transparency Statement
  • UK Regulatory Requirements

Have a question?

Contact Us
  • LinkedIn
  • Youtube
  • Instagram
  • Facebook
  • TikTok
  • Twitter

© 2026 Fragomen, Del Rey, Bernsen & Loewy, LLP, Fragomen Global LLP and affiliates. All Rights Reserved.

Please note that the content made available on this site is not intended for visitors / customers located in the province of Quebec, and the information provided is not applicable to the Quebec market. To access relevant information that applies to the Quebec market, please click here.