The Impact of Rising Visa Fees on UK Skilled Worker Migration

The Impact of Rising Visa Fees on UK Skilled Worker Migration

The cost of migrating to the UK as a skilled worker has risen dramatically in recent years. From visa application fees to the Immigration Health Surcharge, the total expense now runs into thousands of pounds. Here's a breakdown of the costs and their wider impact.

Current Visa Costs (2025)

For a standard Skilled Worker visa application from outside the UK:

Cost Component	Amount
Visa application fee (up to 3 years)	£719
Visa application fee (over 3 years)	£1,420
Immigration Health Surcharge (per year)	£1,035
Certificate of Sponsorship (employer)	£239
Immigration Skills Charge (employer, per year)	£1,000 (large) / £364 (small)

Total Cost Example

For a 3-year visa for a worker at a large employer:

• Visa fee: £719
• IHS (3 years): £3,105
• CoS: £239 (employer)
• Skills charge (3 years): £3,000 (employer)
• Total: £7,063 (split between worker and employer)

This doesn't include legal fees, English language test costs, or travel expenses for biometric appointments.

How Fees Have Changed

Over the past five years, visa costs have increased substantially:

• Visa application fees rose by approximately 15% in October 2023
• The Immigration Health Surcharge increased from £624 to £1,035 per year — a 66% jump
• The Immigration Skills Charge was introduced in 2017 and has been maintained

These increases mean the total cost of a 5-year route to settlement has risen by thousands of pounds compared to just a few years ago.

Impact on Applicants

Financial Barriers

The rising costs create a significant financial barrier for many potential applicants, particularly those from lower-income countries. Even with a qualifying job offer, finding several thousand pounds upfront can be prohibitive.

Regional Disparities

Workers in lower-paying regions or sectors are disproportionately affected. A nurse earning £29,000 in the North East faces the same fees as a software engineer earning £70,000 in London.

Family Considerations

Costs multiply for families. A worker bringing a spouse and two children will pay IHS for all four family members, adding over £12,000 to the cost of a 3-year visa.

Impact on Employers

Recruitment Costs

The combined cost of the CoS, Immigration Skills Charge, and often contributing to workers' visa fees means employers may spend £5,000–£10,000 or more per hire. This is particularly challenging for:

• SMEs with limited budgets
• Public sector organisations (NHS trusts, schools) with constrained funding
• Startups competing for tech talent against larger firms

Competitiveness

High visa costs make the UK less competitive compared to countries like Canada, Australia, and Germany, which have been actively simplifying and reducing the cost of their skilled migration programmes.

The Broader Economic Impact

Immigration economists have raised concerns that rising costs could:

• Reduce the supply of skilled workers in critical sectors like healthcare and technology
• Slow economic growth by limiting the talent pool available to UK businesses
• Shift migration patterns towards countries with more competitive immigration systems
• Increase wage inflation in sectors that rely heavily on overseas recruitment

What Could Change?

There have been calls from business groups and immigration lawyers to:

• Reduce the IHS or make it proportional to salary
• Remove or reduce the Immigration Skills Charge for sectors with genuine shortages
• Introduce instalment payment plans for visa fees
• Review fee levels to ensure the UK remains competitive internationally

Final Thoughts

The cost of UK skilled worker migration is now a significant factor in both individual decision-making and employer recruitment strategies. While the government uses fees as a policy lever to manage migration numbers, there's a growing recognition that excessive costs may be counterproductive. Watch this space for any changes as the government responds to economic pressures and labour market needs.