As part of the spring statement, the Government announced that from 9th April 2025, the Immigration rules change will go live. The main updates include Visa and application costs, Minimum salary threshold rises for skilled workers, and tightening controls on self-sponsorship and the sponsorship of investors.
Visas and applications made outside the UK
Most immigration, visa application and nationality fees have gone up. The majority of UK visas and immigration (UKVI) fees have risen by between 5% and 10%. The cost of a Certificate of Sponsorship to employ most migrant workers is also increasing from £239 to £525. This is a 120% rise. Here’s an example of the change in costs:
Work – applications made outside the UK
One of the key Immigration rule change is the increase in fees. Here’s an example:
| Fees category | Current fee | Fee from 9 April 2025 | Fee change |
|---|---|---|---|
| Innovator Founder – main applicant and dependants | £1,191 | £1,274 | £83 |
| Endorsement fee under Innovator Founder route (payable to endorsing body) excluding VAT | £1,000 | £1,000 | £0 |
| Contact point meeting with endorsing body under Innovator Founder route (payable to endorsing body) excluding VAT | £500 | £500 | £0 |
| Start-up – main applicant and dependants | £435 | £465 | £30 |
Read the full list on the Government website.
Minimum salary threshold increases for skilled workers on reduced rates
Skilled workers must be sponsored on a wage that is the highest of the general salary threshold. This is typically £38,700, unless a discount has been approved. This is an immigration rules change that employers need to ensure they fully understand.
The general salary threshold for skilled workers on the most discounted rates – including those applying for health and care worker visas, as well as workers who entered the skilled worker route before April 2024 and benefit from discounts such as new entrants or relevant PhD holders – is now £25,000 (£12.82 per hour). This is a £1,800 increase. Adjusting this ensures salaries remain well above the national living wage.
Going rates for healthcare and education roles that follow national pay scales will also be updated to reflect the latest pay increases.
Sponsoring Investors and self-sponsors
Up until this Immigration rules change came in to force, UK businesses have been able to sponsor their owners and investors for skilled worker visas if they met the usual sponsorship requirements. However, the Home Office plans to bring in new rules to stop what it sees as “self-sponsorship”. This is where people invest money into a business and, in effect, help pay their own salary through that investment.
Under the new rules, if a worker has put money directly into the business, the amount they have invested (spread out over the length of their visa) will be taken off their salary when checking if they meet the minimum pay needed for a skilled worker visa.
Sponsoring for Specific Sectors Under Immigration Rules Change
Care Workers
Care providers in England must first try to recruit people already in the UK who are on the Skilled Worker visa, before looking to hire from overseas.
Sponsors must get confirmation from their local regional partnership to show they have tried to recruit within the UK. Furthermore, the minimum salary for health and care workers on the Skilled Worker visa has now risen to £25,000. This change has also increased the going rates for jobs in healthcare and education. Entry-level healthcare jobs at Band 3 will no longer meet the new salary requirement.
Creative Workers
Another sector that will face Immigration rules change is the creative industries. If sponsors are employing creatives on Temporary Work – Creative Worker Visas, this can no longer be a way to fill a permanent position. Not even on a temporary basis to cover planned time off.
Costs Recovered from Sponsored Workers
Guidance brought in to force at the end of last year revealed rules on what costs employers can pass on to sponsored workers has been tightened. From 31 December 2024, sponsors are no longer able to recover the skilled workers sponsor licence fee or any other related admin costs. They are also banned from recovering the Certificate of Sponsorship fee for certificates assigned. Employers can lose their sponsor licence if they attempt any of the above.
Further Immigration rules change this Spring have made things even stricter. Employers must not pass on business or immigration costs to sponsored workers. The minimum salary for a sponsored worker must now be worked out after any deductions for these costs.
For example, voluntary deductions like a salary sacrifice for nursery fees can still count towards the minimum salary. However, if an employer loans a worker the cost of their visa or the Immigration Health Surcharge and deducts it from their pay, this amount can no longer be counted as part of their gross salary when checking if they meet the minimum salary requirement for sponsorship.
This has Immigration rules change has been brought forward to stop employers exploiting migrant workers. An example of this is where migrant care workers were left owing thousands of pounds to sponsors for their immigration costs, with no way to repay the debt.
Financial thresholds for company sizes
The turnover and balance sheet thresholds that determine small and medium-sized companies under the Companies Act 2006 has now changed. Sponsors must report any change to their classification within the small sponsor regime within 20 working days. Those classified as small companies benefit from reduced fees for skilled worker and senior or specialist worker sponsor licence applications, as well as lower immigration skills charges for workers on these routes.
Right to Work Checks for Zero-hours Contract and gig economy workers
A possible Immigration rules change involves right to work checks. The Home Secretary announced that businesses operating with zero-hours contracts in the gig economy will have to complete right to work checks. Failure to do so can lead to civil penalties up to £60,000 per worker discovered to be working illegally. Extending right to work checks in this way will require primary legislation. If this is introduced as an amendment to the Employment Rights Bill, it could become law later this Spring.
How The HR Booth Can Help
Keeping on top of the immigration rules change can be complex and time-consuming, especially with the significant updates coming into force this Spring. At The HR Booth, we can guide you through the new rules and make sure your business remains fully compliant. Whether you need help with Certificate of sponsorship applications, updating your right to work check processes, or understanding how the new salary thresholds impact your workforce, our team is ready to support you. We also offer training and tailored advice to help your HR team and managers stay ahead of regulatory changes.
If you are unsure about how these changes affect your business or need hands-on assistance with your HR or recruitment processes, we are here to help.
Conclusion
The Immigration rules change announced in the Spring Statement highlight the Government’s focus on tightening immigration rules and protecting workers’ rights. It is more important than ever for businesses to stay informed and compliant. By planning ahead and seeking expert advice, you can avoid costly penalties and make sure your hiring practices meet the new legal requirements. If you need guidance or support, get in touch with us today – we are here to make compliance simple and straightforward.
