Increase in Immigration Skills Charge from 16 December 2025

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The Immigration Skills Charge (ISC) is increasing by 32% from 16 December 2025. If your organisation sponsors workers on the Skilled Worker or Global Business Mobility (GBM) routes, this change will directly affect how much you pay each time you assign a Certificate of Sponsorship. Here is everything you need to know about the new rates, who is exempt, and how to prepare.

For related support, explore Annaizu’s sponsorship compliance software, immigration services and sponsor licence guidance.

For 2026 checks, cross-check the latest GOV.UK immigration skills charge before making sponsorship or visa decisions.

Key Takeaways

Essential Points for Sponsoring Employers

• The Immigration Skills Charge rises by 32% on 16 December 2025, the first increase since 2017.
• Large sponsors will pay £1,320 per year of sponsorship per worker, up from £1,000.
• Small sponsors and charities will pay £528 per year, up from £364.
• The charge applies at the point of assigning a Certificate of Sponsorship, not at visa application.
• Certain visa categories and worker types remain exempt from the charge.

What Is the Immigration Skills Charge?

The Immigration Skills Charge is a levy paid by UK employers when they sponsor an overseas worker on the Skilled Worker route or certain Global Business Mobility routes. It was introduced in April 2017 to encourage employers to invest in training the UK domestic workforce. The funds collected go to the government and are intended to support skills development across the country.

The charge is calculated per worker and per year of sponsorship. It is paid upfront when the employer assigns a Certificate of Sponsorship (CoS) and is non-refundable in most circumstances, even if the worker's visa application is subsequently refused.

The New ISC Rates from 16 December 2025

Large Sponsors

From 16 December 2025, large sponsors will pay £1,320 for the first 12 months of sponsorship, plus £660 for each additional six-month period. This compares to the current rate of £1,000 per year and £500 per six months.

Small Sponsors and Charities

Small or charitable sponsors will pay £528 for the first 12 months, plus £264 for each additional six-month period. The current rates are £364 per year and £182 per six months.

How the Charge Is Calculated

The ISC is based on the total length of the Certificate of Sponsorship being assigned. For example, if a large sponsor assigns a CoS for three years, the charge will be £1,320 plus £660 plus £660, totalling £2,640. The calculation works in six-month blocks after the initial 12-month payment.

Which Employers Qualify as Small Sponsors?

An employer qualifies for the small sponsor rate if it meets at least two of the following three criteria under the Companies Act 2006:

• Annual turnover of no more than £10.2 million
• Balance sheet total of no more than £5.1 million
• No more than 50 employees

Charities registered in the UK automatically qualify for the small sponsor rate regardless of their size. Employers that do not meet the small sponsor threshold must pay the large sponsor rate.

Who Is Exempt from the Immigration Skills Charge?

Exempt Visa Categories

Not all sponsored workers attract the ISC. The following routes are exempt:

• Student visa holders switching into work routes in certain circumstances
• Graduate route holders
• Workers sponsored under the International Agreement route
• Workers sponsored under the Government Authorised Exchange route
• Intra-company transfers under the Senior or Specialist Worker route where the worker is based overseas and coming for a short-term assignment (subject to conditions)

Exempt Worker Types

The charge does not apply to workers being sponsored in roles that fall below the skills threshold for the ISC, or where the worker is switching from a route that already attracted the charge and the employer is simply extending the sponsorship without a new CoS being issued.

Which Visa Routes Does the ISC Apply To?

The Immigration Skills Charge currently applies when assigning a Certificate of Sponsorship for the following routes:

• Skilled Worker visa
• Global Business Mobility - Senior or Specialist Worker
• Global Business Mobility - Graduate Trainee
• Global Business Mobility - UK Expansion Worker
• Global Business Mobility - Service Supplier
• Global Business Mobility - Secondment Worker

When Does the Increase Take Effect?

The new rates apply to any Certificate of Sponsorship assigned on or after 16 December 2025. If you assign a CoS before that date, the current rates will apply regardless of when the worker's visa application is submitted or when they begin working in the UK.

This means that if you have workers whose CoS assignments are planned for late December 2025 or into 2026, you should factor the higher charge into your budget now. Where operationally possible, assigning CoS certificates before 16 December 2025 will allow you to pay at the lower current rates.

How Much More Will Employers Pay?

Illustrative Cost Comparison for a Large Sponsor

For a large sponsor assigning a three-year CoS, the total ISC under the current rates is £2,000. Under the new rates from 16 December 2025, the same three-year CoS will cost £2,640 - an increase of £640 per worker.

Illustrative Cost Comparison for a Small Sponsor

For a small sponsor assigning a three-year CoS, the current total ISC is £728. Under the new rates, the same CoS will cost £1,056 - an increase of £328 per worker.

Organisations sponsoring large numbers of workers will see a significant increase in their annual immigration spend. It is important to update your internal budgets and, where relevant, review any cost-sharing arrangements with sponsored workers to ensure they remain lawful and compliant with employment law.

Can Employers Recover the ISC from Workers?

There is no legal prohibition on employers recovering the ISC from sponsored workers in all cases, but this must be approached carefully. Any deduction from wages must not take the worker's pay below the National Minimum Wage. Employers should also consider whether recovering the charge is consistent with their obligations under the Skilled Worker route, which requires that workers are paid at least the going rate for their role and the minimum salary threshold.

Annaizu recommends taking legal advice before implementing any cost-recovery arrangement with sponsored employees.

What Should Employers Do Now?

1. Review your pipeline of planned CoS assignments and identify any that could be brought forward to before 16 December 2025 to benefit from current rates.
2. Update your immigration budget for 2026 to reflect the 32% increase in ISC costs.
3. Check whether any of your planned hires fall into exempt categories to avoid overpaying.
4. Confirm whether your organisation qualifies as a small sponsor or charity to ensure you are using the correct rate.
5. Brief your HR, finance and recruitment teams on the change so that cost projections for new hires are accurate.

Frequently Asked Questions

When does the 32% Immigration Skills Charge increase take effect?

The new rates apply to any Certificate of Sponsorship assigned on or after 16 December 2025. CoS certificates assigned before that date attract the current lower rates.

What is the new ISC rate for large sponsors from December 2025?

From 16 December 2025, large sponsors pay £1,320 for the first 12 months of a CoS, then £660 for each additional six-month period.

What is the new ISC rate for small sponsors and charities?

Small sponsors and charities will pay £528 for the first 12 months and £264 for each subsequent six-month period from 16 December 2025.

Is the Immigration Skills Charge refundable if the visa is refused?

The ISC is generally non-refundable once a CoS has been assigned, even if the worker's visa application is later refused. A partial refund may be available in limited circumstances where the CoS is withdrawn before it is used.

Does the ISC apply to all Skilled Worker visa applications?

The ISC applies to most Skilled Worker visa CoS assignments, but certain categories are exempt. You should check the Home Office guidance or speak to an immigration adviser to confirm whether the charge applies to a specific role or worker.

Does the ISC increase affect the Global Business Mobility route?

Yes. The ISC increase from 16 December 2025 applies across all GBM sub-routes where the charge currently applies, including the Senior or Specialist Worker, Graduate Trainee, UK Expansion Worker, Service Supplier and Secondment Worker routes.

How is the ISC calculated for a two-year CoS?

For a two-year CoS, the ISC is the 12-month rate plus two additional six-month payments. For a large sponsor from 16 December 2025, this would be £1,320 plus £660 plus £660, totalling £2,640.

Conclusion

The 32% rise in the Immigration Skills Charge from 16 December 2025 represents a significant increase in the cost of sponsoring overseas workers in the UK. Employers should act now to review their pipelines, update budgets and ensure compliance. Annaizu helps UK employers manage their sponsor licence obligations, Certificate of Sponsorship assignments