The Home Office has confirmed a significant increase in the Immigration Skills Charge (ISC), taking effect from 16 December 2025.
This marks the first major rise since the charge was introduced in 2017, with fees increasing by around 32%. For employers sponsoring overseas workers under the Skilled Worker or Global Business Mobility routes, the change represents a substantial additional cost.
If your organisation relies on international recruitment, now is the time to understand what’s changing — and what actions you can take to minimise impact.
Immigration Skills Charge Increasing from 16 December 2025
The Immigration Skills Charge is a mandatory fee paid by UK employers each time they assign a Certificate of Sponsorship (CoS) to a migrant worker.
The fee is designed to encourage investment in the UK workforce, with funds supporting domestic skills programmes.
From 16 December 2025, the new ISC rates will be:
For each additional six-month period, the charge will rise from:
- £182 ➡️ £240 (small/charitable sponsors)
- £500 ➡️ £660 (medium/large sponsors)
These higher rates will apply to any Certificates of Sponsorship assigned on or after 16 December 2025, regardless of when the visa application is submitted.
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Why the Increase Matters
A 32% uplift in the ISC means a noticeable increase in the overall cost of sponsoring overseas staff.
For example:
- Over a 5-year visa, a medium or large sponsor’s ISC cost will rise from £5,000 to £6,600 per worker.
- For small or charitable sponsors, the same 5-year sponsorship will increase from £1,820 to £2,400.
For care providers, hospitality employers, and other sectors dependent on skilled international workers, this represents a meaningful rise in annual recruitment budgets.
Who the ISC Applies To
The ISC applies when an employer sponsors a worker under:
- Skilled Worker Visa
- Global Business Mobility: Senior or Specialist Worker Visa
- Scale-up Worker Visa (in certain cases)
The fee must be paid when assigning a CoS, and is based on the sponsor’s size and charitable status.
Who Is Exempt
Some roles are exempt from the ISC, including:
- PhD-level occupations
- Certain research and development roles
- Graduate Trainee routes under Global Business Mobility
- Intra-company transfers for less than six months
The new regulations also expand exemptions to include roles in:
- Higher education teaching
- Research and development management
- Sports professionals and coaches
- Clergy
Employers should review the latest SOC code guidance to confirm eligibility.
Impact on Employers
The increase in the Immigration Skills Charge from 16 Dec 2025 will have several practical impacts:
1. Higher Sponsorship Costs
For employers sponsoring multiple overseas workers, the cumulative cost will rise significantly. This may affect workforce planning and budgeting for 2026 and beyond.
2. Need for Timing Strategy
The ISC rate depends on the date the CoS is assigned, not when the visa application is submitted.
That means CoS issued before 16 December 2025 will still qualify for the current lower rates — even if the visa is processed later.
3. Compliance Risks
Assigning a CoS without paying the correct ISC could trigger Home Office compliance issues. Employers must ensure HR and recruitment teams are briefed on the new rates and dates.
4. Licence Readiness
To assign a CoS, your business must hold a valid sponsor licence. Organisations planning to hire international staff in early 2026 should apply for their licence now to take advantage of the current lower ISC rate.
How to Prepare Before the Increase
If your business is planning to sponsor overseas staff soon, you can save hundreds per employee by acting before 16 December 2025.
Here’s how to prepare:
- Apply for your sponsor licence now — it can take several weeks to approve, so starting early is key.
- Assign Certificates of Sponsorship before 16 December to lock in the current lower rates.
- Review your workforce plans to see which roles may be filled before year-end.
- Ensure compliance systems are up to date — including Right to Work checks, record-keeping, and visa tracking.
How Borderless Can Help
At Borderless, we help UK employers manage the entire sponsorship process — from applying for a sponsor licence to staying compliant year-round.
With Borderless, you can:
- Apply for your sponsor licence directly through our platform
- Track your CoS allocations and Immigration Skills Charge payments
- Automate Right to Work checks and compliance monitoring
- Receive expert support to stay audit-ready and avoid fines
With the ISC increase taking effect on 16 December 2025, now is the time to get ahead.
Key Takeaway
The increase in the Immigration Skills Charge from 16 Dec 2025 means higher costs for UK employers sponsoring overseas workers.
By acting early — applying for your sponsor licence and assigning CoS before the deadline — you can save money and stay compliant ahead of these new regulations.
Borderless is the UK’s trusted immigration platform, helping over 600 employers stay compliant with Home Office requirements.
If you’d like expert guidance on preparing for the ISC increase or applying for a sponsor licence, get in touch today.
