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UK announces major hike in visa fees, new penalties for illegal working

The changes for UK visa application fees, illegal working fines are expected to take effect during autumn 2023

UK work visas
The proposed changes will lead to high expenses for employers seeking to recruit individuals from abroad necessitating UK work visas. Image: Canva

The UK government has officially announced plans for hikes in visa application fees, which will come into effect soon.

While the exact date of when this will come into effect remains unconfirmed, the changes are expected to take effect during autumn 2023, according to a statement by international law firm Watson Farley & William (WFW).

The changes include following fee adjustments:

  • The core government application fees for work and visitor visas are projected to rise by 15 percent.
  • Fees related to certificates of sponsorship, indefinite leave to remain, other leave to remain, entry clearance applications, and priority services are slated for a 20 percent increase.
  • The primary rate of the Immigration Health Surcharge will climb from £624 (AED2,919.89 approximately) to £1035 (AED4843.09 approximately) per annum.
    A parallel increase will occur for the discounted rate applicable to students and those under 18, surging from £470 (AED2199.28 approximately) to £776 (AED3631.14 approximately) per year.
  • A Three-Year Skilled Worker visa application for an individual applicant is set to surpass £7,000 (AED32755.17 approximately) under the new regime, representing an approximate 25 percent upsurge.

The proposed changes will lead to high expenses for employers seeking to recruit individuals from abroad necessitating UK work visas.

In addition, employers are advised to evaluate their hiring strategies and financial allocations.

If affordable, they should consider speeding up applications ahead of the impending fee hike.

Moreover, employers are encouraged to make the best of visa durations for new hires who submit applications before the fee hikes come into effect, to prevent the possibility of receiving high charges during avoidable renewal processes.

Penalties for illegal working in the UK

Aside from this, the Home Office has disclosed plans for add to civil penalties for illegal working, which is expected to come into effect in 2024.

The civil penalties include the following revisions:

  • For an initial violation, the maximum penalty for employing an illegal worker will range from £15,000 (AED70189.65 approximately) to £45,000 (AED210568.96 approximately).
  • Subsequent breaches will entail penalties escalating from £20,000 (AED93586.20 approximately) per illegal worker to £60,000 (AED280758.61 approximately).

Employers are strongly advised to implement measures aligned with Home Office guidance to counteract illegal working and ensure compliance.

This includes conducting comprehensive right-to-work assessments for all employees, regardless of nationality.

Moreover, entities holding a Sponsorship Licence are expected to uphold high compliance standards.

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