As the year 2023 unfolds, the United Kingdom continues to refine its immigration policies, with a particular focus on sponsor licences. These licences play a crucial role in facilitating international talent recruitment. In 2023, several updates have been introduced to streamline the sponsor licence process and ensure compliance with changing regulations. These changes are designed to make the system fairer and more efficient, and to ensure that only businesses that meet high standards are able to sponsor overseas workers. While applying for a sponsor licence, you must be aware of the current rules. Let's delve into the latest developments shaping sponsor licences in the UK.

Changes to the minimum salary threshold

One of the most significant changes is an increase in the minimum salary threshold for skilled worker visas. From April 2023, the minimum salary threshold is £26,200 per year for most roles. This is an increase of £600 from the previous threshold of £25,600.

The minimum salary threshold is lower for some roles, such as those in social care and the creative industries. However, the overall increase in the minimum salary threshold is likely to make it more difficult for businesses to sponsor overseas workers.

Changes to the fee structure

The Home Office has also announced changes to sponsor licence fees. From April 2023, businesses applying for a sponsor licence will have to pay £1,500. This is an increase of £300 from the previous fee of £1,200. 

The renewal fee for a sponsor licence has also increased by £300, from £1,000 to £1,300. The fee for adding a new worker to an existing sponsor licence has remained the same at £200.

Point-Based Immigration System

The UK introduced a points-based immigration system in 2021, replacing the previous Tier system. The points-based system categorises skilled workers into three tiers: Skilled Workers, Intra-Company Transfers, and Temporary Workers. In order to hire skilled workers from outside the UK, employers must now have a sponsor license. This system has been further refined and updated in 2023 to enhance efficiency and meet the evolving needs of the UK labour market.

Immigration Skills Charge

One notable update is the Immigration Skills Charge, which was introduced in April 2017 and is applicable to all employers hiring skilled workers from outside the EEA and Switzerland. In 2023, this charge was revised to ensure that employers contribute to local workforce training and development. The Immigration Skills Charge requires employers to pay £1,000 per year for each sponsored worker. However, small or charitable organisations may qualify for a reduced rate of £364 per year.

Resident Labour Market Test

The Resident Labour Market Test (RLMT) is a crucial aspect of the sponsor licence application process. It requires employers to demonstrate that no suitable settled worker is available to fill a particular vacancy before offering it to a non-EEA or non-Swiss national. However, in 2023, there have been discussions about potentially removing or amending the RLMT to make it more streamlined and efficient for employers. While no concrete changes have been implemented yet, this development signifies the UK government's commitment to simplifying the process for employers.

Compliance and Audits

The UK government is placing increased emphasis on compliance and has implemented stricter measures to ensure sponsor licence holders meet their obligations. Compliance audits may be conducted by the UKVI to assess an organisation's compliance with sponsor licence requirements. These audits can be both announced and unannounced. It is crucial for employers to maintain accurate records and keep up-to-date with their reporting duties, such as reporting changes in sponsored workers' circumstances or roles.

One of the most significant changes is the introduction of a new online system for managing sponsor licences. This system will make it easier for businesses to apply for and renew their licence, and to manage their workers' sponsorship.

Impact of the changes

The changes to the sponsor licence system are likely to have a significant impact on businesses that sponsor overseas workers. The increase in the minimum salary threshold and the changes to the fee structure are likely to make it more expensive for businesses to sponsor overseas workers.

The new online system for managing sponsor licences is likely to make it easier for businesses to comply with the rules. However, the changes to the inspection process may make it more difficult for businesses to retain their licences.

Overall, the changes to the sponsor licence system are likely to make it more difficult and expensive for businesses to sponsor overseas workers. However, the changes are also designed to make the system fairer and more efficient. A good immigration lawyer can make your business understand all current scenarios, rules, and charges with their expert assistance. A Y & J Solicitors is one of the best UK immigration law firms. They deeply understand the needs and demands of  clients and approach them seriously. They, with the best immigration lawyers team, aim to provide clients with the most effective solution to their issues.

If you are a business that sponsors overseas workers, you should carefully consider the impact of the changes to the sponsor licence system. You should also make sure that you are fully compliant with the new rules.