UK Prime Minister’s Announcement: Visa Application Fees and Immigration Health Surcharge Set to Rise

In a recent announcement on 13 July 2023, the UK Prime Minister unveiled plans for significant increases in visa application fees and the Immigration Health Surcharge (IHS). These measures have been proposed to meet the rise in public sector wages. Here are the key developments regarding the upcoming changes:

1. Visa Application Fees: Reports suggest that once the new rates come into effect, there will be a substantial rise of up to 20% in visa application fees across various categories, including work and study visa routes.
2. Immigration Health Surcharge (IHS): The IHS, which certain categories of visa applicants are required to pay to access the UK National Health Services, will see a significant hike. Specifically, the annual charge per adult applicant will increase from GBP 624 to GBP 1,035.
3. Impact on Certain Categories: The changes will also affect specific groups. For children under 18, students, and Youth Mobility Visa holders, the IHS will increase from GBP 470 to GBP 776 per applicant per year.

The UK Home Office is expected to provide further details about the exact implementation dates and the specific visas that will be impacted by these adjustments in the coming months.

Impact on Employers:

The upcoming increases in visa application fees and the Immigration Health Surcharge are likely to have a considerable impact on employers in the UK who hire foreign nationals. As the costs associated with employing non-UK workers are set to rise, employers may face increased financial challenges in recruiting talent from overseas.

It is important for businesses and stakeholders to stay informed about these changes and prepare for the potential financial implications they may bring. As more details are released by the UK Home Office, employers will need to adapt their hiring strategies and budgets accordingly to navigate these new developments effectively.