UK Government Announces Increase in Immigration Health Surcharge and Visa Fees
On 13 July 2023, the UK Government announced that the Immigration Health Surcharge (IHS) will increase by 66%, from £624 to £1,035 per person per year for most main applicants. UK visa application fees are also set to increase by at least 15%.
The Government has not yet announced when the substantial increase in the cost of the Immigration Health Surcharge will come into effect. However, the Government has announced that the revised UK visa application fees will come into effect for all immigration applications submitted from 4 October 2023.
What is the Immigration Health Surcharge?
The Immigration Health Surcharge was introduced in April 2015.
Applicants who apply for a UK visa online pay the surcharge when they submit their online application form.
Payment of the IHS allows migrants (who are not exempt from paying it) to use the National Health Service (NHS).
Holding private medical insurance does not negate the need to pay the IHS and migrants still need to pay for certain types of services, such as prescriptions, dental treatment, eye tests and assisted conception.
In April 2015, UK visa applicants were required to pay £200 per person per year in order to access the NHS. The IHS was doubled to £400 per person per year in December 2018, before being increased again in October 2020 to £624 per adult per year and £470 per child or student per year.
How Much Is the IHS Increasing By?
Under the Government’s plans, the main Immigration Health Surcharge rate will increase from £624 to £1,035 per adult per year, and the discounted rate will increase from £470 to £776 per child or student per year. This equates to a 66% increase.
To put this into context, an adult considering applying for a 5-year visa will need to budget to pay a total of £5,175 over the course of their stay (up from £3,120 currently), before visa application fees.
Meanwhile, a family of 2 adults and 2 children will need to pay £18,110 over the course of 5 years (up from £10,940 currently). Again, visa application fees will need to be paid on top.
Why Is the Immigration Health Surcharge Increasing?
The substantial increase in the Immigration Health Surcharge has been justified as a measure to help the Government raise funds for public sector wages increases.
In a House of Commons debate on public sector pay, John Glen, the Chief Secretary to the Treasury, said:
“We plan to increase the rates of the immigration health surcharge, which have been frozen for the past three years, despite high inflation and wider pressures facing the economy and the system in general, to ensure that it covers the full healthcare costs of those who pay it. Under our plans, the main rate will increase to £1,035, and the discounted rate for students and under-18s will increase to £776. That increase to the surcharge will help to fund the pay rise for doctors.”
Doctors in Unite, which represents junior doctors, general practitioners and hospital consultants, have said that they are “appalled” at the move, calling it “immoral and divisive”. They note that migrant workers already have National Insurance contributions deducted from their salaries at source and these contributions fund the National Health Service. The hike in the Immigration Health Surcharge may therefore be seen as an unjust additional penalty, effectively taxing migrants twice for the same service.
Charities, unions and politicians have also criticised the policy as “deeply unfair” and “deliberately divisive”, saying it will damage the UK economy by squeezing workers from overseas.
Will the Immigration Health Surcharge Increase Apply to Everyone?
The short answer is no, because not everyone is required to pay the Immigration Health Surcharge. Whether an applicant is required to pay the IHS depends on the immigration route that they are applying for.
For example, an applicant will not be required to pay the Immigration Health Surcharge if they are:
- applying for a visitor visa;
- applying for a visa for 6 months or less from outside the UK (i.e. a Fiance Visa);
- applying for indefinite leave to enter or remain in any route;
- applying for a Health and Care Worker visa (or as a dependant of a Health and Care Worker);
- applying to the EU Settlement Scheme; or
- applying for British Citizenship.
There are also various other exceptions to the requirement to pay the Immigration Health Surcharge.
UK Visa Application Fees Also Set to Increase
The substantial increase in the Immigration Health Surcharge is to be accompanied by an increase in UK visa application fees.
In the same House of Commons debate on public sector pay, John Glen, the Chief Secretary to the Treasury, said:
“… we will increase fees across a range of immigration and nationality routes, including for people coming here to live, work and study at a time of record high migration numbers. Specifically, that means increasing the cost of work visas and visit visas by 15%, and increasing the cost of study visas, certificates of sponsorship, settlement, citizenship, wider entry clearance, leave to remain and priority visas by at least 20%. We are also equalising costs for students and those using a priority service, so that people pay the same whether they apply from within the UK or from outside the UK. That will help to cover more of the cost of the migration and border system, allowing the Home Secretary to divert more funding to police forces to help fund the pay rise for the police.”
To put this into context, whereas an application for a Skilled Worker Visa for more than 3 years currently costs £1,235, this is set to increase to something in the region of £1,480. The increased IHS fee will need to be paid on top.
Meanwhile, whereas an application for a UK Spouse Visa currently costs £1,538, this will increase to at least £1,845. Again, the increased Immigration Health Surcharge fee will also need to be paid.
UPDATE: The UK Government has now published the revised UK visa application fees that will come into effect for all immigration applications submitted from 4 October 2023.
When Will the Increased UK Visa Application Costs Apply?
The Government has not yet announced when the substantial increase in the cost of the Immigration Health Surcharge will come into effect. However, the Government has announced that the revised UK visa application fees will come into effect for all immigration applications submitted from 4 October 2023.
If you are considering applying for a UK visa, you may therefore wish to submit your application sooner rather than later. And, whenever your apply, professional advice from an immigration lawyer will help to ensure that your application is approved first-time.
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