UK Employers Need to Get Ready for the Sponsor Licence Changes Urgently and Plan for Immigration Rule Changes

The last 12 months have been full of White Papers and immigration rule changes. Well-informed sponsor licence holders are rushing to sponsor new overseas workers before some of the changes come into force.

In this blog, our UK Immigration Lawyers explain the timeframe for change and why employers should look to beat the changes and develop an action plan.

Contact OTS Solicitors Today for Expert Sponsor Licence and Immigration Legal Advice.

Beating the immigration rule reforms

There are two forthcoming immigration rule reforms that employers need to be aware of:

1. Increase in the immigration skills charge, and
2. Changes to the English language requirement for Skilled Worker Visa applicants.

The increase in the immigration skills charge takes effect on 16 December 2025.

The changes to the English language requirement for the Skilled Worker Visa take effect on 8 January 2026.

The changes are part of the government's Immigration White Paper ‘’Restoring Control Over the Immigration System.’’ They are intended to reduce the reliance of UK employers on overseas workers whilst also promoting economic growth.

The increase in the immigration skills charge

The immigration skills charge payable by UK employers will increase by 32%, compared to the pre-16 December 2025 fees. Employers have accepted that the increase in the immigration skills charge fee and other White Paper measures may prompt them to review their recruitment strategy, but have questioned how the immigration skills charge fee increase above inflation will promote economic growth.

What will the immigration skills charge fee increase mean for your business or for your decision to apply for a sponsor licence? The impact will depend on whether your company is classed as a small sponsor or a large sponsor, as the government is retaining the same fee banding structure.

For small sponsors, the cost of the immigration skills charge over a one-year sponsorship will increase by £116, rising from £364 to £480.  As most sponsored employees are sponsored for five years, the true increase is £580, as the five-year immigration skills charge fees increase from £1,820 to £2,400.

For large sponsors, the cost of the immigration skills charge over a one-year sponsorship will increase by £320, rising from £1,000 to £1,320.  For a five-year sponsorship, the increase is £1,600, as the five-year immigration skills charge fees increase from £5,000 to £6,600.

The increases may be manageable if your company is a tech start-up employing one highly specialist sponsored worker, but less affordable if your company is heavily reliant on overseas workers recruited on Skilled Worker Visas. Many companies would be unable to compete with international competitors if their business model relied solely on UK-based recruitment, given the ongoing UK skills gap that cannot be remedied by individual short-term apprentice schemes and instead requires whole-scale, long-term reform of UK education and training provision.

Changes to the English language requirement

The changes to the English language requirement to qualify for a Skilled Worker Visa, settlement or entry as a dependant of a points-based immigration visa holder are:

1. B1 to B2 standard of the Common European Framework of Reference for Languages (CEFR) for Skilled Worker Visa applicants.
2. B2 for Skilled Worker Visa holders applying for Indefinite Leave to Remain.
3. A1 for initial application, A2 for an extension application and B2 for an Indefinite Leave to Remain application for the partners and dependants living in the UK on points-based immigration system Dependant Visas.

The Common European Framework of Reference for Languages is the international standard for measuring English language skills, ranging from A1 to C2.  A1 is described as beginner level, and C2 as proficient in English.

Employers fear that enhancing the English language requirement will increase the time taken to sponsor Skilled Worker Visa recruits due to:

1. Recent changes to English language testing applied by test providers, and
2. Ecctis changes to the degree certification process.

Ecctis, previously known as UK NARIC, is the organisation in the UK with official responsibility for recognising international qualifications and comparing them to equivalent UK academic qualifications.

The changes to the English language requirement will affect UK employers as well as Skilled Worker Visa applicants and their dependants applying for Dependant Visas because:

1. Changes to English language testing by approved test providers and changes by Ecctis to the degree certification process may result in the English language requirement process taking longer to complete, and
2. The extension of the enhanced English language requirement for dependants of Skilled Worker Visa applicants may deter highly skilled English-speaking workers if their adult family members cannot accompany them because of the new English language requirement rules. This may therefore reduce the talent pool of ‘brightest and best’ applicants for Work Visas.

Action points for holders of sponsor licences

Action points for employers with sponsor licences include:

1. Prioritise recruitment of overseas workers and the allocation of certificates of sponsorship for Skilled Worker Visa applicants to ensure your business pays the current level of immigration skills charge, rather than the 32% increased figures.
2. Make sure overseas recruits apply for their Skilled Worker Visas ASAP and before the 8 January 2026 deadline to avoid delays in English language requirement processing and potential rejections of Dependant Visa applicants.
3. Ensure the business does its utmost to retain specialist sponsored staff employed before the July 2025 immigration rule changes, as the sponsored employees and the business benefit from the transitional provisions.
4. Review the current recruitment strategy and training budgets to assess the financial impact of recruiting workers reliant on sponsorship through a Skilled Worker Visa and the ongoing additional cost of sponsor licence compliance against the extra costs of providing enhanced training and apprentice schemes for UK workers and trainees.
5. Consider if the cost of sponsorship can be reduced through options such as the use of professional Sponsor Licence Management Services to increase efficiencies or through ending some incentives to attract overseas workers, such as the payment of the visa application fee or the immigration health surcharge fee for Dependant Visa applicants.
6. Review pricing strategies to assess if the additional costs associated with overseas sponsorship or recruitment and training of British and settled workers can be passed onto consumers with increased pricing, or if costs can be cut in other areas to maintain or minimise the reduction in profits.

In addition, sponsors of Work Visa applicants should:

1. Keep on top of the immigration rule changes through regular immigration law training.
2. Reduce the risk of sponsor licence enforcement action through the employment of a professional Sponsor Licence Management Service working in conjunction with HR staff and key personnel.
3. Review employment contracts and recruitment policies to ensure they are compliant with the revised skill level, minimum salary thresholds and job occupation rules for Skilled Worker Visa applicants.
4. Plan for potential sponsorship costs for ten rather than five years in case the government consultation leads to the suggested change in settlement rules requiring Skilled Worker Visa holders and their dependants to meet a ten-year residence requirement rather than the current five-year residence requirement before being eligible to apply for Indefinite Leave to Remain.
5. Ensure that sponsored employees are aware of the changes to immigration rules and what they need to do to ensure they comply with their visa conditions and meet the eligibility criteria for UK settlement as soon as possible.

Talk to the Immigration Lawyers at OTS Solicitors

At a time of rapid immigration policy announcements and consequent immigration rule changes, enhanced monitoring of sponsor licence compliance and licence revocation, the ongoing cost-of-living crisis, and fears about US tariffs and UK tax rates, there has never been a better time to ensure that your business has the best legal team on board to protect it and enable proactive planning.

At OTS Solicitors, our expert Sponsorship Licence Lawyers and Business Immigration Solicitors provide the expert, proactive and commercially focused immigration and employment law advice that your business needs to maintain compliance and to squeeze out a competitive edge.

Contact OTS Solicitors Today for Expert Sponsor Licence and Immigration Legal Advice.

Appointments are available at our offices in central London, as well as by phone or online consultation.

Our lawyers speak Arabic, Armenian, Farsi, French/Mauritian Creole, Spanish, Tamil, Tagalog/Ilonggo and Urdu/Punjabi.

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