United Kingdom: Immigration Health Surcharge Increase Confirmed to Begin February 6, 2024
January 17, 2024
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At a Glance
- The UK Parliament approved a law increasing the Immigration Health Surcharge (IHS) fees, which will go into effect on February 6, 2024.
- The annual IHS fees for adult applicants will increase to GBP 1,035 per person – a 66 percent increase from the current GBP 624.
- Businesses may seek to move up any employee transfers or extensions prior to this date in order to benefit from the current, lower IHS rates.
The situation
As a result of the UK Parliament approving a law on January 15, 2024, increased Immigration Health Surcharge fees will now go into effect on February 6, 2024.
A closer look
For adult applicants, the annual IHS fee will increase to GBP 1,035 per person – a 66 percent increase from the current GBP 624. For children and student applicants (and their dependents), the annual fee will increase to GBP 776 per person – a 65 percent increase from the current a GBP 470.
Impact
- Budget revisions. Businesses using or seeking to use the UK immigration system to employ foreign nationals will need to reassess their budgets and application strategies considering these fee changes.
- Benefitting from current rates. Business may seek to move up any employee transfers or extensions prior to February 6, 2024, in order to benefit from the current, lower IHS rates.
Background
- Rationale. In the context of persistent strikes by public sector workers, the UK government (in line with the recommendations of various independent pay review bodies) decided in mid-2023 to give key public sector workers a wage increase averaging 6.5 percent for the year 2023/24. The IHS increase is part of a broader strategy – which includes visa fee increases and other proposals – to cover this pay rise.
- Earlier original implementation date. The fee increase was originally expected to go into effect on January 16, 2024, but parliamentary delays resulted in an implementation date of February 6, 2024.
Looking ahead
The increase in IHS fees is part of a range of measures that increase the cost of immigration to the UK. Increases to salary thresholds announced in December 2023 are expected to come into force in Q2 of 2024.
This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].
