UK Government Announces Rise in Immigration Fees

On July 13th, the UK Government made a significant announcement regarding an impending rise in visa fees later this year. While exact costs and timelines are yet to be confirmed, the proposed changes are as follows:

  1. Work and Visit Visa Fees: To increase by 15%.

  2. Other Visa Categories, including Family Visas: To increase by 20%.

  3. Immigration Health Surcharge (IHS): To increase from £624 per year to £1035 per year.

IHS fee changes require parliamentary approval and thus may take more time to take effect than other fee increases. However, the likelihood of approval is high given the UK Government’s parliamentary majority.

For a better perspective, let's consider the current fees compared to the proposed increases. Over 5 years, a family of four on a 5 year work visa can soon expect to pay:

It's essential to remember that these fees are paid upfront during the application process, serving as a significant barrier for skilled workers seeking employment in the UK. Often, employers provide interest-free loans or contribute to these fees, with reimbursement stipulations in employment contracts. The announced fee hikes will inevitably add a considerable financial burden on both sponsors and individuals.

It’s worth noting — the UK Home Office argues that the IHS payment aims to have migrants contribute to the NHS. However, this notion has raised concerns as many migrants who pay the IHS are already making national insurance contributions through their earnings. This effectively introduces an element of double taxation, which we believe is deeply unfair.

 

As always, we’re dedicated to helping you navigate these changes with expertise and support. If you would like to speak to one of our specialist immigration team members, please contact us.

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Immigration Health Surcharge to increase on 16th January 2024

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