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Immigration Fees – Huge Increases Announced

Are you keeping up with the latest changes to UK immigration fees? Suppose you’re an individual considering the UK for work, study or residency, or a business looking to recruit international talent. In that case, it’s crucial to stay informed about these changes. Let’s dive in and examine what these changes mean for you and how they may affect your future plans and decisions.
Recently, the UK Government announced a significant hike in immigration fees across multiple categories, marking an important turning point in the country’s immigration policy. From the dramatic rise in the Immigration Health Surcharge to increased visa application fees, the changes are manifold and impactful.
Though potentially daunting, the shifts can be navigated with proper information and preparation. This article aims to delve into the specifics of the changes, help you understand their implications, and offer practical tips for staying adaptable in this rapidly evolving landscape.
Let’s dive in and examine what these changes mean for you and how they may affect your future plans and decisions.

Sweeping Changes on the Horizon

On 13 July 2023, the UK Government unveiled a significant hike in immigration fees. The Immigration Health Surcharge, paid annually by migrants and their families, will rise from £624 to a hefty £1,035.
This annual fee is part of the overall cost of visa applications. It is designed to contribute to the UK’s National Health Service. A discounted rate available to students, children, and youth mobility visa holders will also increase, climbing from £470 to £776 per year.
But the fee increases don’t stop there. A 15% rise in work and visit visa applications is on the cards. The cost of student visas, certificates of sponsorship, settlement, citizenship, entry clearance, and leave-to-remain applications is expected to soar by at least 20%.
Interestingly, there has been a move to equalise the costs for student visas and priority services. This means that applicants will pay the same fees whether they apply from within the UK or overseas, potentially affecting the application process for many.
Although an exact date for the roll-out is yet to be confirmed, speculations hint at autumn 2023.

The Shaky Funding Bridge

The UK government has outlined that these fee increases will fund public sector pay rises. This decision has ignited a discussion about the morality and fairness of funding public sector pay increases off the back of fees levied on migrants and businesses that employ them. Is it reasonable to place the financial burden of public sector pay rises onto the shoulders of migrants and the companies that employ them?

Students Left in the Lurch

The recent changes also deliver a blow to international students. The statement of changes to the Immigration Rules (HC 1496) decrees that students enrolled in courses starting on or after 1 January 2024 can no longer bring dependants unless they are studying for a PhD, another doctoral qualification, or a research-based higher degree.
This change can potentially discourage international students, who contribute significantly to the UK’s higher education sector, from choosing UK institutions for their studies.

Fee Changes

Alongside these increases, there have been some positive changes, as the Home Office announced the removal of several fees. The £19.20 fee for biometric enrolment, and the £161 fee for an in-country Transfer of Conditions, will be abolished.
Similarly, fees will be removed for customers amending details on their physical evidence of immigration status and for a like-for-like replacement of an expired biometric residence permit (BRP).
These changes are expected to come into effect in the autumn. They will simplify the immigration fee structure, making it less complex for applicants.

Silver Linings and Unaddressed Challenges

On a brighter note, specific sectors are set to benefit from alterations to the shortage occupation list. Roles in the construction and fishing industry are now included, offering the potential for lower salary requirements and reduced application fees. This could help these sectors attract more foreign workers, which could help address skills shortages.

Also, Ukrainian nationals can breathe a sigh of relief as the Ukraine Extension Scheme has been extended. This is a positive development for Ukrainian nationals already in the UK, as it offers them more time to settle their status.

However, it raises the question of whether the UK should be extending similar considerations to nationals from other countries who are also in challenging situations.

Unpacking the Impact on Employers

The fee hikes are anticipated to add financial pressure on UK businesses employing foreign nationals. The 66% increase in the Immigration Health Surcharge is particularly contentious, as many employers choose to reimburse this cost. This effectively means that these businesses will also be bearing the burden of these increased costs.

To counteract these costs, some businesses have resorted to implementing “clawback” clauses, which require employees to repay some or all of the fees if they leave within a set timeframe. However, these provisions have raised ethical concerns, with critics suggesting they could exploit workers.

Recommendations for Employers and Employees

What steps can you take to navigate these upcoming changes? Here are some suggestions:

  • Budgeting: Adjust your financial plans to accommodate the increased costs. This might involve reviewing your current commitments and identifying areas where savings can be made.
  • Legal advice: Consult with legal professionals before drafting “clawback” clauses. This is important as poorly-drafted clauses can be unenforceable and potentially lead to legal disputes.
  • Timely applications: Submit immigration applications sooner to avoid additional costs. This can also help avoid potential delays in processing times.
  • Rights Protection: Ensure your employees’ rights are protected if their employment is ending due to these costs. This could involve seeking advice on employment law and ensuring your practices are fair and within legal bounds.

Conclusion: Navigating the Changing Landscape of UK Immigration

The recent changes to the immigration fee structure and policy signal a significant shift in the UK’s immigration landscape. While the abolition of specific fees will be welcomed by many, the hikes in visa costs might serve as a deterrent for individuals and businesses considering the UK as a potential destination.

Indeed, these developments raise serious concerns about fairness and possible exploitation, necessitating careful consideration and thoughtful decision-making. For those affected, the strategy would be to remain informed, seek professional advice, and reassess their future plans accordingly.

Simultaneously, businesses must critically review their recruitment strategies, ensuring their plans accommodate these changes and continue to support their talent needs.

As the situation continues to evolve, vigilance will be essential. It’s of utmost importance to stay informed about further updates and guidelines from the government, which is where an Immigration Consultant can be a lifeline. The current climate might be challenging, but with adaptability and preparedness, it’s possible to weather this transitional period and find successful paths forward.

In conclusion, the changes present both hurdles and opportunities, underscoring the need for both individuals and businesses to be agile and responsive in their approach to UK immigration.