United Kingdom: Immigration Health Surcharge Increases
October 23, 2023
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At a Glance
- UPDATE January 17, 2024: The implementation date of the increased Immigration Health Surcharge fees is now confirmed to be February 6, 2024.
- Significant increases to the Immigration Health Surcharge (IHS) announced in July 2023 are expected to come into force on January 16, 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 using or seeking to use the UK immigration system to employ foreign nationals will need to reassess their budgets and application strategies in light of these fee changes.
The situation
Significant increases to the Immigration Health Surcharge (IHS) announced in July 2023 are expected to come into force on January 16, 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 in light of these fee changes.
- Benefitting from current rates. Business may also seek to bring forward any employee transfers or extensions so as to benefit from the current rates.
Background
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.
Looking ahead
As the IHS increase has been approved by both chambers of the UK Parliament, an effective date of January 16, 2024 is highly likely for this change.
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].
