UK employers planning to sponsor overseas talent in 2026 should prepare for further cost pressure in the Skilled Worker route. Recent rule changes have already lifted salary baselines and associated sponsor charges. Early budgeting and workforce planning will be essential.
Salary levels and discounts
From July 2025, the general salary requirement for new Skilled Worker applications increased to £41,700 per year (or the occupation’s going rate, if higher). For many sponsors, this has materially altered recruitment costs.
Although the headline threshold applies in most cases, limited discounts continue to exist. Lower salary points may be available in limited cases, for example where the applicant is under 26, still studying or a recent graduate, on an approved training route, or holds a relevant PhD in STEM or academia. These concessions are tightly defined and require careful mapping to the correct salary tables and transitional rules. Employers should avoid assuming eligibility and seek advice where there is any doubt.
Core sponsorship costs to factor in
Beyond salary, sponsors must meet several mandatory charges. Importantly, some of these fees cannot be passed to the worker and doing so risks sponsor compliance action.
Key costs include:
- Sponsor licence fee
- Certificate of Sponsorship (CoS) fee
- Immigration Skills Charge (ISC)
From 16 December 2025, the ISC is set to rise substantially. Employers sponsoring in 2026 should use the new annual rates when modelling costs, particularly for longer visas where the cumulative charge is significant.
Practical steps for 2026 planning
For 2026 planning, employers should review now which roles are likely to require sponsorship and check that pay aligns with both the general Skilled Worker minimum and the relevant going rates. Any shortfall should be built into budgets early, alongside the increased Immigration Skills Charge applying from 16 December 2025. Sponsors should also ensure their licence, allocation planning and compliance processes are in order to avoid recruitment delays.
Whilst there is no set date for a further increase to salary thresholds, more change is on the horizon. The Migration Advisory Committee is due to publish its final recommendations on the Temporary Shortage List in. With thresholds, going rates and transitional provisions continuing to evolve, employers looking to sponsor overseas workers are strongly advised to seek legal advice to ensure they understand the full fee landscape and their ongoing sponsorship duties.
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