On January 16, 2025, the UK government introduced the Immigration and Nationality (Fees) (Amendment) Order 2025, outlining a series of fee increases set to take effect on April 9, 2025. These changes aim to reduce the reliance of the UK immigration system on taxpayer funding, with the additional revenue projected to bring in £140 million for UK Visas and Immigration (UKVI) in the next financial year.

The fee hikes will impact key areas such as visa sponsorship, naturalisation, and the recently implemented Electronic Travel Authorisation (ETA) system. Employers, visa applicants, and those seeking British citizenship should review these changes carefully to understand their financial implications.

Since Home Office fees are non-refundable if an application is rejected, it is now more crucial than ever to ensure applications meet all necessary immigration requirements. Proper preparation can help avoid costly rejections. This article breaks down the key upcoming fee increases and their financial impact.

Key Fee Increases in the Immigration and Nationality (Fees) (Amendment) Order 2025

1. Increased Costs for Employers Sponsoring Workers

Employers hiring international talent under the Skilled Worker visa will face substantial cost increases. The fee for a Certificate of Sponsorship (CoS)—a mandatory document proving that a UK employer has offered a job to a foreign worker—will more than double, rising from £239 to £525, a 120% increase. Fees for Temporary Worker and Sub-Route CoS will also jump from £25 to £55, increasing expenses for short-term hires.

Impact on Employers
Businesses that depend on skilled foreign workers will see a significant rise in recruitment costs, which, when combined with other mandatory sponsorship fees, can be a considerable financial burden. These include:

• Sponsor Licence Application Fee (£536 for small companies and £1,476 for large companies)
• Immigration Skills Charge (ISC) (£364-£1,000 per worker per year)
• Immigration Health Surcharge (IHS) (£1,035 per year per worker)

2. Higher Costs for Visa Applicants and Travellers

Individuals applying for visas or travel authorisation to the UK will also experience increased fees.

• Electronic Travel Authorisation (ETA): The maximum fee for this pre-travel authorisation will rise from £10 to £16, affecting visa-exempt travellers who must obtain clearance before arriving in the UK.
• Indefinite Leave to Remain (ILR): The application fee for settlement in the UK will surpass £3,000 for the first time, increasing to £3,029 per person. This rise makes it even more expensive for families applying together.
• Work and Study Visas: Most visa categories will see an increase of 5-10%, adding to the financial burden on applicants.

3. Increased Costs for British Citizenship Applications

For many applicants, securing British citizenship is the ultimate goal, granting them permanent residency with no restrictions on time spent outside the UK. However, the recent rise in UKVI application fees could make citizenship less accessible. The cost of a citizenship application will increase from £1,500 to £1,605, making the process even more expensive, particularly for families applying jointly.

Why These Increases Matter

The UK already has one of the most expensive immigration systems globally, and these new fee hikes will further strain applicants and sponsors financially.

• For Businesses: Rising sponsorship costs could make it harder to recruit and retain international talent, particularly in industries dependent on skilled migrant workers.
• For Individuals and Families: Higher application fees may place settlement and citizenship out of reach for many.

As UKVI fees are non-refundable, unsuccessful applicants face substantial financial losses. Given the increasing costs, ensuring that applications are accurate and complete is more important than ever.

The Importance of Expert Guidance

Seeking professional legal advice can help applicants:

• Improve Success Rates: Expert immigration lawyers can thoroughly review applications to minimize the risk of rejection.
• Save Time and Money: A well-prepared application reduces the likelihood of expensive reapplications and appeals.
• Receive Tailored Support: Personalised legal strategies can help meet the specific requirements for a visa or citizenship application.

Key Takeaways

• UK immigration and nationality fees will rise significantly from April 9, 2025, making visa applications and sponsorships more expensive.
• Employers hiring overseas workers will see a 120% increase in Certificate of Sponsorship (CoS) fees.
• Citizenship and ILR applications will cost more, with ILR exceeding £3,000 per person.
• Since fees are non-refundable, rejected applications will result in a considerable financial loss.

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