The UK Government has confirmed that the Immigration Skills Charge (ISC) — a mandatory levy paid by employers sponsoring overseas workers — will rise significantly from 16 December 2025.
This marks the first increase since the ISC was introduced in 2017, representing a cost rise of around 32% for most sponsoring organisations.
The change, formalised under the Immigration Skills Charge (Amendment) Regulations 2025 (SI 2025/1078) laid before Parliament on 15 October 2025, aligns with the Government’s Plan for Change reforms announced in the Statement of Changes HC 1333.
Immigration Skills Charge Increasing from 16 December 2025
The Immigration Skills Charge is payable when a UK employer assigns a Certificate of Sponsorship (CoS) under certain work visa routes — including:
- Skilled Worker
- Global Business Mobility (Senior or Specialist Worker)
The charge is paid up front at the point of CoS assignment, and the amount depends on the organisation’s size and charity status.
From 16 December 2025, new rates apply as follows:
These new rates apply to Certificates of Sponsorship assigned on or after 16 December 2025.
Timing Matters
If a CoS is assigned before 16 December 2025, the current lower rate applies, even if the visa application is submitted later.
Conversely, if the CoS is assigned on or after 16 December, the new higher rate must be paid, regardless of when the application is lodged.
In short:
The Immigration Skills Charge liability is fixed by the date of CoS assignment, not by the date the visa application is filed.
Employers with upcoming overseas hires should review their sponsorship pipelines now and, where possible, consider bringing forward CoS allocations to benefit from the current rates.
ISC Exemptions
The updated regulations also expand the list of ISC-exempt occupations.
From 16 December 2025, Certificates of Sponsorship assigned for roles in the following occupations are exempt from the ISC:
- 2119 – Natural and social science professionals (n.e.c.)
- 2161 – Research and development managers
- 2162 – Other researchers (unspecified discipline)
- 2311 – Higher education teaching professionals
- 2463 – Clergy
- 3431 – Sports players
- 3432 – Sports coaches, instructors and officials
These exemptions aim to maintain the UK’s competitiveness in academia, research, and elite sport.
Impact on Employers
The 2025 increase represents a 32% rise in sponsorship costs, significantly impacting workforce budgets.
Cost Impact Example
Over a typical five-year sponsorship period, the total Immigration Skills Charge will rise from:
- £5,000 → £6,600 for large sponsors
- £1,820 → £2,400 for small/charitable sponsors
For employers that rely heavily on international recruitment, this adds a meaningful uplift to hiring costs.
Short-Term Actions
- Review CoS allocation timing: Assign before 16 December 2025 to secure current rates.
- Confirm sponsor licence status: Only licensed sponsors can assign CoS — ensure your licence is active and compliant.
- Coordinate with HR and finance: Adjust budgets and approvals to reflect the upcoming fee increase.
Long-Term Considerations
- Build the higher ISC into annual workforce planning and recruitment budgets.
- Review assignment lengths and potential alternative immigration routes to manage costs.
- Educate hiring managers on effective dates and compliance obligations to avoid mis-timed CoS assignments.
Non-payment or incorrect payment of the ISC can trigger Home Office compliance action, so internal training and process updates are strongly advised.
Government Rationale
The increase forms part of the Government’s broader effort to fund domestic skills training through higher sponsor contributions.
While the goal of upskilling the UK workforce is supported in principle, many employers will face additional cost pressures, particularly in sectors already dealing with talent shortages.
Automate Home Office Audits with Borderless
The Borderless platform provides a centralized system for all sponsorships, automating reminders for key tasks and ensuring best practices across your organization, simplifying audit preparation and ongoing compliance.
Borderless Perspective
The rise in the Immigration Skills Charge underscores the UK’s continued move toward a “skills-first” immigration framework — balancing economic migration with domestic labour priorities.
For employers, this means more scrutiny on cost control, compliance accuracy, and strategic planning in global mobility programmes.
Organisations should begin immediate impact assessments, focusing on:
- Which CoS assignments can be fast-tracked before the increase;
- How budgets will adjust to the new rates;
- Whether upcoming hires fall under new ISC exemptions.
Conclusion
The Immigration Skills Charge increase from 16 December 2025 is the first major revision to this levy in eight years.
It raises the cost of sponsorship by approximately one-third, expands exemption categories, and ties compliance directly to CoS assignment timing.
Employers should act promptly to review existing plans, allocate CoS where possible before the change, and prepare for higher sponsorship costs in 2026 and beyond.
Proper planning and compliance will be key to managing this transition effectively.
Need Assistance?
Navigating the upcoming ISC increase can be complex, especially when timing, budgeting, and compliance are critical.
At Borderless, our immigration specialists help employers:
- Analyse how the higher rates affect your sponsorship model
- Fast-track CoS assignments to secure the current rates
- Update internal compliance policies and budget forecasts
💼 Get expert immigration support today — speak with a Borderless advisor to ensure your organisation is ready for the 16 December 2025 ISC increase.
👉 Contact Borderless experts to discuss your sponsorship strategy.
