20230718-KPMG_Global-United_Kingdom_–_Visa_and_Immigration_Health_Surcharge_Fees_to_Increase_3页_291kb

Visa and Immigration Fee Increases

Background

The UK government accepted recommendations from independent pay review bodies, including visa and Immigration Health Surcharge (IHS) fee increases. This decision aims to raise £1 billion to fund public sector pay raises, with John Glen, Chief Secretary to the Treasury, describing it as the most responsible approach.

Specific Fee Changes

• IHS fees increased from £624 to £1,035 per year for the main rate, and from £470 to £776 for discounted rates (e.g., students).
• Various visa fees, including work visas, increased by 15-20%, depending on the category.
• Study visas, certificates of sponsorship, and other categories will see at least a 20% increase.

Impact on Employers

• Employers should assess the cost implications for recruitment, talent retention, and budgeting.
• Actions include accelerating immigration application filings to use current fees and reviewing forward-planning budgets to avoid under-budgeting.

Recommendations

• No implementation date confirmed, but immediate impact on budgeting for the next financial year is advised for employers.
• Long-term planning should include reviewing visa application support to align with budget constraints and business operations.