United Kingdom: Immigration Visa Fees, Health Surcharge to Increase
July 13, 2023
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At a Glance
- As part of funding a pay-raise for public sector workers, the UK government has said it proposes to increase immigration visa fees as well as the Immigration Health Surcharge (with the goal of raising GBP 1 billion via this method).
- Fee increases of 15% are proposed for work and visit visa visas; and 20% for study visas, Certificates of Sponsorship, Settlement, Citizenship, Leave to Remain and wider categories. There will also be an equalising of costs for students and in-country and out-of-country priority service fees. There are no details yet of the increase of the immigration health surcharge.
- Employers with foreign nationals should be mindful of the effect of such fee increases on their budget assessments.
The situation
As part of funding a pay-raise for public sector workers, the UK government has said it proposes to increase immigration visa fees as well as the Immigration Health Surcharge (with the goal of raising GBP 1 billion via this method).
A closer look
Fee increases of 15% are proposed for work and visit visa visas; and 20% for study visas, Certificates of Sponsorship, Settlement, Citizenship, Leave to Remain and wider categories. There will also be an equalising of costs for students and in-country and out-of-country priority service fees. There are no details yet of the increases to the immigration health surcharge.
Impact
These changes will potentially have a significant effect on the budget assessments for UK employers employing foreign nationals.
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) had decided to give key public sector workers a wage increase averaging 6.5% for the year 2023/24. In addition to the immigration visa fee and surcharge increase, the UK government has said it will also fund the increased salary obligations by introducing unspecified cost savings measures and re-prioritising government spending across departments.
Looking ahead
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 the cost changes proposed. We will monitor the situation and provide further updates when available.
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].
