Sponsoring a Skilled Worker in the UK involves a variety of costs that extend beyond the initial application. Employers must account for government fees, contributions to healthcare access, recruitment-related expenses, and the internal resources required to manage the sponsorship effectively. Careful planning and preparation can help organisations manage these financial commitments smoothly.
Understanding the different types of fees and obligations, as well as the options for prioritising applications, can make the sponsorship process more predictable. Internal processes such as managing certificates, ensuring compliance, and coordinating with HR or legal teams also require time and attention, which contributes to the overall cost of sponsorship.
For many organisations, being aware of the potential costs and how they are distributed across various stages of the sponsorship process helps in budgeting effectively. Certain fees may be refundable in cases where applications do not proceed, adding another factor to consider when planning the sponsorship journey.
Ultimately, taking a structured approach to sponsorship ensures that organisations of any size can navigate the process with greater clarity and confidence.
Sponsorship Licence Fee
The first step in sponsoring a Skilled Worker is obtaining a sponsorship licence from the Home Office. As of 2025, the fees are structured as follows:
- Small or Charitable Sponsors: £576
- Medium or Large Sponsors: £1,476
Small sponsors are defined as those with an annual turnover of £10.2 million or less and 50 or fewer employees. Charitable sponsors are those registered as charities. All other employers are considered medium or large sponsors.
Certificate of Sponsorship (CoS)
Each Skilled Worker requires a Certificate of Sponsorship, which is an electronic record assigned by the sponsor.
Types of CoS:
Certificates of Sponsorship (CoS) for the Skilled Worker visa are divided into two main types:
- Defined CoS: These are used for applicants applying from outside the UK.
- Undefined CoS: These are issued in specific circumstances, such as when an employer requests a larger number of CoS than their usual allocation, or for workers who do not fall under the standard Defined CoS allocation.
Immigration Health Surcharge (IHS)
As of September 2025, the Immigration Health Surcharge (IHS) for Skilled Worker visa applicants is £1,035 per year. This fee grants visa holders access to the UK’s National Health Service (NHS). Typically, the visa applicant is responsible for paying the IHS; however, employers should be aware of this cost when budgeting for sponsorship.
It’s important to note that the IHS is usually paid as part of the online visa application process. Applicants will be directed to the IHS portal, where they can make the payment and receive a unique IHS reference number. The amount payable depends on the length of the visa and the applicant’s circumstances. For instance, students, their dependants, and those on a Youth Mobility Scheme visa are required to pay £776 per year, while other applicants typically pay £1,035 per year.
Employers should also be aware that certain fees, including the IHS, may be refundable under specific circumstances. For example, a full refund is available if the visa application is refused, if the applicant withdraws the application before a decision is made, or if the IHS was paid twice for the same visa application.
Understanding the IHS and its implications is crucial for employers sponsoring Skilled Worker visa applicants. By being informed about the costs and potential refunds, employers can better manage their sponsorship budgets and ensure compliance with UK immigration regulations.
Priority and Super-Priority Services
Employers may choose to use the priority or super-priority visa services to expedite the application process. The fees for these services are:
- Priority Service: £500
- Super-Priority Service: £1000
These services are optional and can be selected based on the urgency of the recruitment process.
Recruitment Expenses
Recruiting a Skilled Worker involves various expenses, including:
- Advertising Costs: Employers are required to advertise the job role to ensure it is not being filled by a resident worker.
- Recruitment Agency Fees: If using an agency, their fees can vary.
- Interview Expenses: Costs associated with interviewing candidates, such as travel or accommodation.
These costs can vary widely depending on the recruitment methods used and the role being filled.
Internal Administrative Costs
Managing a sponsorship licence and complying with immigration regulations requires internal resources, including:
- Sponsorship Management System (SMS): Time spent on the SMS to assign CoS and report changes.
- Compliance Checks: Ensuring ongoing compliance with Home Office requirements.
- Training Costs: Training staff to manage sponsorship responsibilities.
These internal costs can accumulate over time and should be factored into the overall sponsorship budget.
Refundable Fees
1. Priority and Super-Priority Fees
The fees for priority and super-priority visa services are not refundable if the visa application is refused, according to GOV.UK guidance.
2. Certificate of Sponsorship (CoS) Fee
If a visa application is refused and the CoS was not used, the CoS fee can be refunded.
3. Sponsorship Licence Fee and Immigration Health Surcharge (IHS)
Both the sponsorship licence fee and the IHS are non-refundable.
Conclusion!
Understanding the full cost of sponsoring a Skilled Worker in the UK is crucial for employers who want to plan budgets carefully and stay fully compliant with immigration rules. Taking into account all the costs involved, from government fees and recruitment expenses to internal administrative resources, allows organisations to make informed decisions about sponsorship.
For the most up-to-date guidance, employers should refer to the official website.
For practical advice, support, and resources to navigate the sponsorship process smoothly, Sponsor Licence Hub provides expert guidance to help employers at every stage of sponsoring Skilled Workers.
