Immigration Skills Charge Rises on 16 December 2025: What Sponsors Need to Know

UK employers who sponsor overseas workers will face a notable rise in the Immigration Skills Charge (ISC) from 16 December 2025. This is the first increase since the ISC was introduced in 2017 and represents a substantial uplift in the overall cost of sponsorship.

The Immigration Skills Charge is a mandatory fee that most UK sponsors must pay when sponsoring non-UK nationals on eligible work routes. It is designed to encourage employers to invest in training resident workers rather than relying on long-term overseas recruitment.

The charge is paid up front when a Certificate of Sponsorship (CoS) is assigned. The amount payable depends on:

• whether the sponsor is classed as medium/large or small/charitable, and
• the type of the sponsoring organisation.

From 16 December 2025, ISC rates increase across the board:

• The charge for the first 12 months rises from £1,000 to £1,320 per worker.
• Each additional six-month period increases from £500 to £660.

• The first 12 months rises from £364 to £480 per worker.
• Each further six-month period rises from £182 to £240.

The key factor is the CoS assignment date.

• If a CoS is assigned before 16 December 2025, the current lower ISC rate applies  even if the visa application is submitted later.
• If a CoS is assigned on or after 16 December 2025, the higher rate applies  regardless of when the worker applies.

The Amendment Regulations also widen the list of occupations that are exempt from the Immigration Skills Charge. Sponsors will not need to pay the ISC where the role being sponsored falls under one of the following SOC codes and job groups:

• 2111 (Chemical scientists)
• 2112 (Biological scientists)
• 2113 (Biochemists and biomedical scientists)
• 2114  (Physical scientists)
• 2115 (Social and humanities scientists)
• 2119 (Natural and social science professionals not elsewhere classified)
• 2161 (Research and development managers)
• 2162 (Other researchers, unspecified discipline)
• 2311 (Higher education teaching professionals)
• 2463 (Clergy / ministers of religion)
• 3431 (Sports players)
• 3432 (Sports coaches, instructors and officials)

These exemptions apply only where the sponsored role genuinely aligns with the relevant SOC code. Sponsors should therefore ensure coding is accurate and evidence-led, as misclassification can create compliance exposure.

A separate exemption continues for some Global Business Mobility transfers. The ISC is not payable where all of the following apply:

• the worker was assigned a CoS on or after 1 January 2023,
• they are an EU national (or hold a Latvian non-citizen passport),
• they normally work for the sponsor’s EU business and are temporarily transferred to the UK, and
• the transfer end date is no more than 36 months after the start date shown on the CoS.

Sponsors should note that the ISC cannot lawfully be recovered from the employee. Any attempt to recoup this cost may breach sponsor duties and put the sponsor licence at risk.

With the implementation date approaching, sponsors should act early to manage cost exposure. Employers ought to review their pipeline of upcoming hires and extension cases now, focusing on roles that will require a Certificate of Sponsorship in December 2025 or soon after, so that budgets and timelines are clear in advance.

Where timing allows, sponsors may wish to issue Certificates of Sponsorship before 16 December 2025, as doing so secures the current lower Immigration Skills Charge rate even if the visa application is submitted later. This small shift in timing can make a meaningful difference to overall spend, particularly for larger recruitment rounds.

The ISC increase is a significant cost development for sponsors and comes at a time when many sectors already face higher recruitment pressures. Careful timing of CoS assignments, accurate occupation coding and forward planning will be essential to managing the impact.

For tailored advice on how the Immigration Skills Charge increase may affect your business, we’re here to help. With over 20 years of experience and a steadfast commitment to excellence, Morgan Smith Immigration is your trusted partner for all your immigration needs. Contact us today to learn more about how we can assist you with UK visa applications and provide tailored advice for your circumstances. For any enquiries or assistance, call us at 0203 959 3335 or email [email protected].