Home Office Plans 120% Fee Increase for Certificate of Sponsorship

Certificate of Sponsorship Faces 120% Price Hike

The Home Office announced changes to the cost of issuing a Certificate of Sponsorship (CoS) on 16th January. Dates for the impending changes have yet to be confirmed, but they were effective in spring 2025. The increase will apply to new applications and renewals. 

CoS Fee Changes in Spring 2025:

• Certificate of Sponsorship (CoS) fees increased from £239 to £525 for immigrant workers (such as a Skilled Worker Visa).
• Certificate of Sponsorship (CoS) fees for temporary workers increased from £25 to £55.

Why are the Certificate of Sponsorship fees changing?

Home Office fees are regularly updated, with annual increases commonplace. However, more significant updates, like the 120% increase in the cost of employing foreign workers, are part of the government’s strategy to reduce reliance on taxpayer funding and ensure a self-sufficient immigration system. 

Other fees are increasing, with the recently introduced Electronic Travel Authorisation system rose from £10 to £16 just weeks after becoming effective on 8th January 2025. Citizenship applications also face a rate hike. 

Sponsor System Overhauls

Beyond the overall shift to the immigration strategy aimed at bringing in an additional £239 million per year, the government have focussed on reviewing the sponsor licence system to ensure:

• Employers prioritise hiring domestic workers, with stricter enforcement and two-year bans for repeat visa rule offenders. 
• Increased training opportunities to upskill the local workforce and reduce reliance on overseas hires 
• Migrants are protected from exploitation.

2024 & 2025 Changes to the UK Business Sponsor System Include:

• Sponsor Licence Renewals: From April 2024, renewals automatically extend for 10 years, with no renewal required unless there’s a compliance issue. New applications will also be valid for 10 years.
• Skilled Worker Visa Salary Threshold: Increased to £38,700 in 2024. Applicants must meet the minimum salary or the job’s “going rate,” whichever is higher.
• Penalties for employing illegal workers doubled to £60,000 per worker in 2025. Repeat offenders face two-year bans. Minor breaches will trigger stricter 12-month action plans.
• No Passing Costs to Workers: Employers can no longer pass the cost of sponsor licences or Certificates of Sponsorship (CoS) to sponsored workers. Penalties apply for attempting to recover these fees.
• Prohibited Roles: Sponsors can no longer sponsor workers for personal roles such as caregivers, nannies, or housekeepers.
• Sponsor Requirements: Sponsors must have at least one senior-level user who is a settled worker and holds a position such as an employee, director, or partner.

What is a CoS?

A CoS is a Certificate of Sponsorship issued by a Home Office-approved UK business in receipt of a Sponsor Licence. The sponsor licence permits a business to employ overseas workers, either as long-term or temporary workers. A CoS is issued after making a genuine job offer paying above the salary threshold to a person with the requisite skills and experience to do the job. It must be a shortage occupation, or you must prove a domestic worker cannot perform the same duties.

What are the business sponsorship requirements?

As part of the requirements for holding a sponsor licence and issuing certificates of sponsorship, a business must comply with regulations including:

• Maintaining effective HR Systems to monitor overseas employees
• Prioritising the employment of domestic workers
• Hiring overseas workers legally, meeting salary threshold & genuine job offer requirements before issuing a CoS
• Paying all licence and associated fees

We support businesses in navigating the Home Office update on sponsorship licences, complying with the latest regulations, avoiding increased penalties, and hiring talented overseas employees.