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Important Sponsor Licence 2025 updates
Given the unusual timing, people may have missed the announcement of updates to the Skilled Worker route and the Sponsor Licence during the New Year celebrations on both 31 December 2024, and 1 January 2025.Â
Despite the unconventional release date, these Skilled Worker and Sponsor Licence 2025 updates are critical for both workers and sponsors, as they introduce important clarifications and adjustments. For example, the rules now explicitly prohibit sponsors from passing sponsorship fees on to workers they hire for roles in the UK.
The changes were to three different parts of the sponsor guidance rules:Â
We have grouped the individual updates from these webpages by their respective topics to make it easier to read and digest the information. Keep reading to discover what the changes are, and see how they may impact you or your business.
Sponsorship costs
The immigration rules now explicitly prohibit sponsors passing on the fees they have to pay to sponsor a worker, to the worker themselves.Â
Before, many sponsors would pass on administrative fees for applications and other costs to the worker, like the £239 fee to assign a Certificate of Sponsorship. This is no longer permitted.Â
These updates align the rules for other sponsorship fees with the existing rules for the Immigration Skills Charge, which businesses have long been prohibited from passing on to workers. The Immigration Skills Charge is £364 for small businesses or charities and £1,000 for medium or large businesses.
This change to the rules will impact businesses, as they will now have to pay more to hire a worker if they used to commonly pass the fees on.
Workers will benefit from this change, as they will not have to bear the financial burden of sponsorship fees that some businesses previously passed on to them. One of the key aims of some of the 2024 immigration rule changes is to protect vulnerable people from exploitation by sponsors who abuse the immigration system. The prohibition on passing fees onto migrant workers is part of these efforts.
Restrictions on sponsoring workers in a personal capacity
Updates to the rules now also prevent sponsors from hiring workers in a personal capacity, such as for domestic jobs like housekeepers, caregivers and for childcare.
Workers can only be sponsored if they are going to work in the UK in a business capacity.Â
This update to the rules also aims to reduce abuse of the immigration system so that only actual businesses with real jobs can hire workers, and not just individual people who want a personal employee.
Key personnel for a Sponsor Licence 2025 application
Another update to the Sponsor Licence rules is that new sponsors applying for a licence must now have at least one Level 1 User who works at the company, and is a settled worker. A settled worker can be either a British citizen, someone settled in the UK on the EU Settlement Scheme, or someone with Indefinite Leave to Remain.Â
However, legal representatives who are not part of the business can still take the role of Key Contact, or Level 2 User.Â
Businesses may be impacted as they will need to make sure that they have staff that are eligible for taking the Level 1 User role, who will be the main person that manages the Sponsorship Management System.Â
Sponsor Licences have four different key roles that can be filled, which are: Level 1 User, Level 2 User, Authorising Officer, and Key Contact. Assigning all roles except the Level 2 User are a requirement to get a licence.
Sponsor Licence refusals and revocations
Following the other updates we have discussed, the Home Office now has expanded reasons to refuse a Sponsor Licence application.Â
If a sponsor appears as if they will be hiring overseas workers in a personal capacity, then the Home Office can reject the sponsor’s application.Â
Additionally, a Sponsor Licence application can be rejected if the Home Office believes that the applicant plans on acting as an employment agency, or as a business that will provide workers to others.
Finally, any Sponsor Licence holder who employs a worker after 31 December 2024 and attempts to recoup some of the sponsorship costs by passing the fees onto the sponsored worker, could have their licence revoked.Â
Minor updates to the rules
Alongside the more in-depth changes above, there were also some smaller updates that modified the wording of some rules to make them clearer or bring them in line with other rule changes.
These minor changes are:
Sponsor Licence downgrades
Following the removal of the requirement to renew Sponsor Licences every four years, the rules now state that a Sponsor Licence can only be downgraded to a B-rating twice within a rolling four-year period.
Genuineness Test wording
The wording of the genuineness test has been strengthened to emphasise that sponsors must genuinely intend to provide the advertised role to the overseas worker they are recruiting. This change may result in more checks being conducted on employers.
Clarification on supporting evidence for visa routes
Sponsors are now explicitly required to submit supporting evidence if they wish to add additional visa routes to their Sponsor Licence. For example, this applies if a sponsor wants to begin sponsoring individuals under the Global Business Mobility Visa.
These updates, while minor, are important for sponsors to be aware of to ensure compliance with the latest rules.
What these updates mean
The Home Office is clearly making the rules stricter to prevent abuse of the immigration system and protect workers. However, sponsors may face more scrutiny and higher costs as a result.
The Government’s goal is to ensure better compliance for sponsors, with stricter enforcement of the immigration rules. This means more licences may be revoked.Â
Additionally, increased restrictions on who can act as a businesses’ key personnel could be a sign that they want sponsors to have deeper roots in the UK, and show a greater commitment to following the rules.Â
If this trend towards stricter compliance continues, we may see further updates in the future that impose additional requirements on sponsors and their workers.
How we can help
While we cannot change the ever-evolving immigration rules, our team of immigration experts is here to guide you through the complexities of the system. We assist businesses in obtaining Sponsor Licences and support workers in securing Worker Visas.Â
Please note that we cannot assist people with finding jobs.Â
We also offer other services related to Sponsor Licences, such as mock compliance audits to prepare you for visits from UK Visas and Immigration, as well as assistance with assigning Certificates of Sponsorship and Sponsorship Management System training.Â
If you are interested in the immigration guidance we have to offer, then you can contact us by phone, email, our website chat bubble, or by booking a free 10-minute assessment with a team member. It should be noted that you will not receive legal advice during your initial contact with us.Â
After you take this initial step to contact us, you can book a paid consultation that lasts either 30 minutes or an hour, the choice is yours. The consultation can be with one of our immigration specialists, or with our Principal Solicitor, Nathan Woodcock. During the consultation, you will be given legal advice and be guided through what steps to take next.Â
You can read our reviews and past client success stories to see how we have helped clients in the past, and to hopefully help you make up your mind about using our services.
Get in touch with us today to see what we can do for you.
Ready for assistance?
If you have any questions, or want to book an appointment with one of our legal experts, contact Woodcock Law today. Call us on +44 (0)20 7712 1705 or email info@woodcocklaw.co.uk.
