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Introduction
The UK government is making further change to the immigration system following the measures outlined in the May 2025 Immigration White Paper (IWP). The objective of these reforms is to reduce net migration, boost productivity and strengthen the UK economy by attracting highly skilled talent from across the globe.
Impact
High
What has changed?
The following changes are forthcoming as a result of the measures detailed in the IWP.
Immigration Skills Charge (ISC) from 16th December 2025
Immigration Skills Charge is increasing by 32%:
- For large sponsors, the charge is set to increase to £1,320 per sponsored worker, per year.
- For small sponsors, the annual rate will rise to £480 per year.
A Certificate of Sponsorship (CoS) can be assigned with a work start date of up to 3 months in the future. All CoS assigned before 16 December will incur the existing fee, so you can plan in advance.
Please remember that the ISC fee is paid only for the main applicant. Some routes are exempt from the ISC, such as a student visa holder switching into a Skilled Worker visa.
English language requirement from 8th January 2026
For new Skilled Workers the Level of English requirement will rise from B1 to B2 from 8 January 2026 under the Common European Framework. This will apply only to new Skilled Worker visa applications. Existing visas granted before this date will continue to rely on the B1 level and won’t need to re-take the test.
The Level B2 is a slightly higher level of English language than B1. To give you an idea, B2 is currently used for degree-level student applications at UK Universities. Most applicants successfully completing the test at B1 level should have no issues in passing the B2 level.
Graduate visa from 1 January 2027
The Graduate visa will reduce from two years to 18 months, for applications submitted on or after 1 January 2027. This might not immediately impact employers, however, in the future we might see more graduates looking into “switching” into a worker route earlier than before.
What to expect /impact?
Employers should be aware of these changes and ensure they are prepared for the impact of the increase in cost and minimum language requirement of skilled worker applicants.
Reminder on recouping immigration costs:
Sponsoring employers should be aware that recouping visa fees from the worker is only allowed under certain circumstances:
- Certificate of Sponsorship, Immigration Skills Surcharge fees (ISC, see above) and any Sponsor License fees can NEVER be recouped from the worker. The Sponsor is fully responsible for these fees.
- If you are planning on recouping other immigration costs through a salary-sacrifice scheme, please remember that the gross annual salary left after the deductions, will still need to meet the minimum salary threshold.
Any recoupment arrangement needs to be actively reported to the UKVI on assigning the CoS i.e. via CoS Sponsor Notes; this will allow the Home Office to assess the salary offered meets the salary threshold, against the recoupment arrangements.
What you need to do
For further information on UK immigration reforms, please contact the Sterling Lexicon immigration team at [email protected]
