The UK Government has announced the first significant increase to the Immigration Skills Charge (ISC) since its introduction in 2017. Effective December 16, 2025, this change will impact all UK employers sponsoring overseas workers under the Skilled Worker and Global Business Mobility (Senior or Specialist Worker) routes.
What Is the Immigration Skills Charge?
The ISC is a mandatory fee paid by most UK employers when assigning a Certificate of Sponsorship (CoS) to a migrant worker under certain visa routes. Introduced to encourage investment in domestic workforce training, the charge:
- Must be paid upfront when the CoS is issued (unless an exemption applies).
- Is calculated based on the length of sponsorship.
- Cannot legally be passed on to the sponsored worker.
New ISC Fees from December 16, 2025
| Sponsor Type | Current Fee (first 12 months) | New Fee (first 12 months) |
|---|---|---|
| Small/Charitable | £364 | £480 |
| Medium/Large | £1,000 | £1,320 |
Additional 6-month periods will also increase:
- Medium/Large sponsors: £660 (up from £500)
- Small/Charitable sponsors: £240 (up from £182)
Why Is the ISC Increasing?
The increase is part of the UK Government’s 2025 Immigration White Paper strategy, which aims to:
- Support investment in domestic skills training.
- Reduce reliance on overseas labor.
- Align with broader reforms to make migration “more selective and sustainable.”
Impact on Employers
- Sponsorship costs will rise by approximately 30–32%.
- New rates apply to all CoS assigned on or after 16 December 2025.
- Over a five-year sponsorship, medium and large sponsors could face £1,600+ in additional costs.
Practical Steps for Employers
- Review recruitment timelines: Consider assigning CoS before the change takes effect.
- Budget accordingly: Factor increased ISC costs into workforce planning.
- Check exemptions: Certain roles may qualify for exemptions, consult the latest guidance.
- Maintain compliance: Ensure CoS assignments and ISC payments are accurate to avoid penalties.
Erickson Insights & Analysis
Erickson Immigration Group will continue to monitor developments and share updates as more news is available. Please contact your employer or EIG attorney if you have questions about anything we’re reporting above or case-specific questions.