The number of companies stripped of the right to issue Migrant Work Visa Licences has more than doubled in the past year, with government figures showing a sharp increase in enforcement action against employers accused of exploiting the immigration system.
According to data released by the Home Office, 1,948 sponsor licences were revoked in the year to June 2025, compared with 937 in the previous twelve months. The cancellations primarily affected businesses in sectors heavily reliant on overseas labour, including adult social care, hospitality, retail and construction.
Grounds for Licence Removal
Officials said licences were removed where employers had failed to meet their obligations, ranging from underpaying staff and not providing promised work, to more serious breaches such as helping individuals use work visas as a means of avoiding normal immigration routes.
UK Home Office argued that stronger intelligence sharing between government departments and police forces was uncovering abuses more effectively than before, moving away from reliance on random inspections.
A spokesperson said the rise in cancellations showed “real action is being taken to protect workers and secure our borders”, insisting that sanctions, business closures and financial penalties are being deployed alongside licence revocations.
Political and Industry Reaction
Migration Minister Mike Tapp said the crackdown was part of efforts to ensure British workers were prioritised for jobs. He highlighted the role of some employers in “scamming the system” by sponsoring migrants who did not meet the rules, contributing to overstaying and illegal immigration.
However, critics warned the measures risk damaging industries that depend on migrant labour. Employers in social care and hospitality in particular argue they are already facing severe staff shortages and that sanctions could hurt both businesses and the workers who rely on sponsored employment to remain in the UK.
The political debate has been equally charged. The Conservatives accused ministers of failing to bring overall migration down, describing the policy as “tinkering at the edges”. Shadow home secretary Chris Philp argued that Britain remained “hooked on imported labour” because the government had not done enough to train domestic workers or reform welfare to encourage more people into jobs.
Meanwhile, Migration Watch UK chairman Alp Mehmet pointed out that nearly 50,000 organisations currently hold licences, meaning the cancellations still represented a small proportion. He called for tougher conditions on visa eligibility, including higher qualification requirements and stronger obligations for employers to recruit locally before looking abroad.
A New Home Secretary’s Test
The announcement comes shortly after Shabana Mahmood took up her post as Home Secretary in last week’s Cabinet reshuffle. While the trend predates her appointment, she has already suggested further measures could be considered, including suspending visas from countries that refuse to cooperate in returning migrants with no right to remain in Britain.
The policy shift reflects mounting political and public pressure to show control over immigration, as Migrant Work Visa Licences face rising cancellations while net migration stays high and businesses continue to press for access to overseas workers. Balancing compliance with the need to keep essential sectors staffed remains a major challenge for the government.
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