1. Skilled Workers in the UK: Understanding the Costs of Sponsoring

In an increasingly globalised world, businesses often seek to attract talent from across the globe to remain competitive and innovative. For companies operating in the UK, sponsoring migrants as Skilled Workers is an increasingly common and important practice. With EEA citizens who are not eligible under the EU Settlement Scheme no longer having the right to move to and work in the UK, sponsoring workers under the Skilled Worker route is now a routine consideration for many UK employers.

We regularly assist start-up companies and small businesses to obtain sponsor licences. Businesses of many different types can consider an application, provided that they meet the sponsor licence requirements, have a genuine need to sponsor workers and are realistic about the initial and ongoing costs involved.

The costs associated with immigration sponsorship can represent a significant financial commitment. Sponsor licence fees, Certificate of Sponsorship fees, the Immigration Skills Charge and, where applicable, visa application fees and the Immigration Health Surcharge should therefore be considered at an early stage.

This article sets out the principal Home Office fees and other immigration costs that UK employers should take into account when sponsoring workers under the Skilled Worker and Health and Care Worker routes. The figures below are correct as at 7 October 2026. Home Office fees are subject to change and should be checked at the time of making an application or assigning a Certificate of Sponsorship.

2. Sponsor Licence Fees

The first step in sponsoring Skilled Workers in the UK is applying for a Sponsor Licence from the Home Office. A licence is mandatory for an organisation wishing to sponsor workers under the Skilled Worker route and, once granted, is generally valid indefinitely unless it is surrendered or revoked.

The current Home Office application fees for a Worker sponsor licence are:

• £611 for small or charitable sponsors; and
• £1,682 for medium or large sponsors.

For these purposes, a company will generally qualify for the small sponsor fee if it falls within the small companies regime under the Companies Act 2006. As a general guide, a company will usually be treated as small where at least two of the following apply:

• annual turnover of £15 million or less;
• total assets of £7.5 million or less;
• 50 employees or fewer.

Different provisions apply to charitable sponsors and certain organisations which are not companies. Sponsor size should therefore be checked carefully before the application fee is paid.

3. Certificate of Sponsorship (CoS) Fees

Once an organisation has obtained a Sponsor Licence, it must assign a Certificate of Sponsorship (CoS) to each individual worker it wishes to sponsor. The current CoS fee for a Skilled Worker is £525.

The same fee applies whether the sponsor assigns a Defined CoS, generally used for a Skilled Worker applying for entry clearance from outside the UK, or an Undefined CoS, generally used for a Skilled Worker applying from within the UK.

It is important that the correct type of CoS is assigned. Assigning an incorrect CoS can result in wasted fees, problems with the worker’s visa application and potential sponsor compliance concerns.

If a sponsored worker’s role changes significantly, the sponsor should consider whether the worker is required to make a change-of-employment application. A new CoS and application will generally be required where the worker moves to a job in a different occupation code, or in certain cases where a worker sponsored in an Immigration Salary List role moves to a role that is not on the Immigration Salary List. A worker may change to a different role within the same occupation code without making a change-of-employment application where the relevant requirements are met, although the sponsor may have reporting obligations.

4. Immigration Skills Charge

The Immigration Skills Charge (ISC) is an expense that a sponsoring UK organisation must bear when sponsoring a Skilled Worker, unless an exemption applies.

Sponsor size	First 12 months	Each additional 6 months	Equivalent 5-year charge
Small or charitable	£480	£240	£2,400
Medium or large	£1,320	£660	£6,600

There are exemptions from the ISC, including in certain cases where a Student switches to the Skilled Worker route and for sponsorship in specified occupation codes. The applicable exemption should be checked in each case.

Sponsors should also be aware of restrictions on passing sponsorship costs to sponsored workers. For Skilled Workers, the sponsor must not seek to recoup prohibited sponsor licence fees and associated administrative costs, the CoS fee, or the Immigration Skills Charge from the sponsored worker. Breaching these requirements will ‘normally’ lead to a licence being revoked.  

A partial ISC refund may be available where a worker receives less permission than the period sponsored, starts work but leaves before the end of the sponsored period, or in certain other circumstances. The ISC will normally be refunded in full if the visa application is refused or withdrawn, or if the worker does not take up the sponsored employment, subject to the applicable refund rules.

5. Priority Fees

Sponsors may be able to use priority services in connection with a sponsor licence application or certain post-licence Sponsor Management System requests, subject to eligibility and availability.

• Pre-licence priority service: £750 per request. Where accepted, the service aims to consider the sponsor licence application within 10 working days.
• Priority processing for an eligible sponsorship management request: £350 per request.

Priority services do not guarantee that an application or request will be approved. The Home Office may also request further information or carry out additional checks.

6. Visa Application Fees

Visa application fees vary according to the route, whether the application is made inside or outside the UK, whether the period of sponsorship is three years or less or more than three years, and whether the role qualifies for the reduced Immigration Salary List fee.

Applications made in the UK

Application	Up to 3 years	More than 3 years
Skilled Worker (including dependants)	£943	£1,865
Skilled Worker – Immigration Salary List (including dependants)	£628	£1,235
Health and Care Worker (including dependants)	£324	£628

Entry clearance applications

Application	Up to 3 years	More than 3 years
Skilled Worker (including dependants)	£819	£1,618
Skilled Worker – Immigration Salary List (including dependants)	£628	£1,235
Health and Care Worker (including dependants)	£324	£628

Applicants may also be able to purchase a priority or super priority service at additional cost, depending on the country or application route and the availability of the service.

7. Immigration Health Surcharge (IHS)

Most Skilled Worker applicants and their dependants must pay the Immigration Health Surcharge (IHS) when applying for permission for more than six months. The current annual rates are:

• £1,035 per year for most adult migrants;
• £776 per year for students and Youth Mobility Scheme applicants;
• £776 per year for children under the age of 18.

Applicants under the Health and Care Worker route, and their eligible dependants, are exempt from paying the IHS.

8. Recruitment Requirements and Current Skilled Worker Eligibility

There is no general Resident Labour Market Test under the Skilled Worker route. Employers are not required to advertise a vacancy in a prescribed way simply because they wish to sponsor a Skilled Worker. Sponsors must, however, be able to demonstrate that the role is genuine, meets the requirements of the route and has not been created mainly so that a worker can obtain immigration permission.

The Skilled Worker eligibility framework has changed significantly since this article was first published. Since July 2025, the general skill threshold has returned to RQF level 6, subject to specified exceptions and transitional arrangements, including roles on the Immigration Salary List and Temporary Shortage List.

There are also special rules for care workers and home carers (occupation code 6135) and senior care workers (occupation code 6136). New overseas recruitment into these occupations under the Skilled Worker route closed in July 2025. Certain in-country applications remain possible under transitional provisions, where the employee has legally worked in one of the occupations for at least three months before a CoS is issued. Sponsors should check the specific recruitment and sponsorship requirements before assigning a CoS in these occupations.

Accordingly, an employer should confirm that the proposed role is eligible for sponsorship before incurring the costs of assigning a CoS or making other sponsorship payments.

9. Legal and Compliance Costs

Navigating the complexities of immigration law and complying with sponsor duties can be challenging. Many organisations choose to obtain legal advice and assistance with sponsor licence applications, CoS assignments, sponsor compliance and Skilled Worker applications. Professional fees will vary according to the complexity of the matter and the level of assistance required.

10. Contact Our Immigration Barristers

For expert advice and assistance with any business immigration matter, contact our business immigration barristers on 0203 617 9173 or complete our enquiry form.

11. Frequently Asked Questions

What is a Sponsor Licence and why would I need one?

A Sponsor Licence allows an eligible UK organisation to sponsor workers under routes including the Skilled Worker route. It is generally required where an employer wishes to employ a worker who needs Skilled Worker sponsorship.

What are the costs associated with obtaining a Sponsor Licence?

The Home Office application fee is currently £611 for a small or charitable sponsor and £1,682 for a medium or large sponsor.

What is a Certificate of Sponsorship and how much does it cost?

A Certificate of Sponsorship is an electronic record assigned by a licensed sponsor to a worker. The current Skilled Worker CoS fee is £525.

What is the Immigration Skills Charge?

The Immigration Skills Charge is a charge payable by the sponsor in many Skilled Worker cases. It is £480 for the first 12 months and £240 for each additional six months for a small or charitable sponsor, or £1,320 for the first 12 months and £660 for each additional six months for a medium or large sponsor. Exemptions apply in some cases.

Are there additional fees for priority processing?

Yes. The pre-licence priority service currently costs £750 per request. Priority processing for an eligible post-licence sponsorship management request currently costs £350 per request. Both services are subject to eligibility and availability.

How much do Skilled Worker visa applications cost?

For a standard Skilled Worker application made in the UK, the current fee is £943 for sponsorship of up to three years and £1,865 for more than three years. For entry clearance, the corresponding fees are £819 and £1,618. Reduced fees apply to qualifying Immigration Salary List roles, and separate lower fees apply under the Health and Care Worker route.

What is the Immigration Health Surcharge?

The IHS is payable by most Skilled Worker applicants and their dependants. The standard adult rate is currently £1,035 per year and the child rate is £776 per year. Health and Care Worker applicants and their eligible dependants are exempt.

Is the Resident Labour Market Test required for Skilled Worker sponsorship?

No. There is no general Resident Labour Market Test under the Skilled Worker route. Sponsors must nevertheless ensure that the vacancy is genuine and that the role and worker meet the relevant Skilled Worker requirements. Special provisions apply to the transitional sponsorship of care workers and senior care workers.

Can an employer recover sponsorship costs from the worker?

Not all sponsorship costs can lawfully be passed to a sponsored worker. In particular, sponsors must comply with the current restrictions on recouping sponsor licence and associated administrative costs, CoS fees and the Immigration Skills Charge. The precise restriction depends on the route, fee and date, and should be checked before any repayment agreement is used.

How can legal advice help with Skilled Worker sponsorship?

Legal advice can assist with sponsor licence eligibility, the correct occupation code and salary, CoS assignment, sponsor duties, reporting obligations and the worker’s immigration application, reducing the risk of avoidable errors and compliance problems.