You won’t believe how much UK employers must now pay to hire migrant workers!

The UK government is set to tighten its immigration controls for skilled workers and students alike, announcing a series of measures that will raise costs for employers, shorten graduate stay periods and reinforce English language requirements. Home Secretary Shabana Mahmood unveiled the new rules in Parliament on Tuesday, aiming to ensure that migrants make a tangible contribution to British life and reduce net migration figures.

Higher fees for employers sponsoring foreign talent

One of the headline changes is a 32 percent increase in the Immigration Skills Charge (ISC), the fee that companies pay when they sponsor a foreign worker. Introduced in 2017, the ISC is intended to fund training initiatives for UK workers. Under the new regime, which comes into effect from January, employers will face substantially higher costs when hiring from overseas:

If previously an employer paid £1,000 per sponsored worker per year, they will now pay around £1,320 annually.

The fee is payable for each year of the worker’s visa, potentially representing a significant investment for large-scale hiring plans.

Smaller firms hiring under the Skilled Worker route will also see the uplift, although reduced rates—for example, £364 per year—will apply for smaller or charitable employers.

While businesses will incur higher costs up front, the government argues that the additional revenue will be channelled into apprenticeships and training schemes—supporting unemployed or under-skilled UK residents to boost local workforces.

New English language requirements

From January, all Skilled Worker visa applicants must demonstrate proficiency at A-level standard (CEFR level C1) in English. Key features include:

Home Office-approved tests will verify spoken, written and reading skills at application stage;

Language certificates will be checked as rigorously as criminal record checks or proof of funds;

Applicants unable to meet C1 will face refusal of their visas, regardless of job offer or salary level.

These higher standards aim to prevent situations where migrants struggle to integrate or communicate effectively in the workplace and wider community.

Reduced post-study work period for graduates

International students have long enjoyed a two-year post-study work visa under the Graduate route. From January, that period will be trimmed to 18 months, with the stated goal of ensuring that graduates seek and secure meaningful employment promptly. Additional measures include:

Stricter proof of self-sufficiency: students must now show they hold enough funds to cover living costs without recourse to public funds;

Enhanced monitoring of graduate employment outcomes to assess whether universities and sponsors deliver on career support;

A clampdown on courses seen as low-value or primarily targeting visa issuance rather than genuine educational quality.

Citing the 2025 Immigration White Paper, the Home Office reaffirmed its intention to “raise the bar” for those arriving to study in the UK, both to protect public confidence in the system and to encourage a faster route to skilled work or entrepreneurship.

Attracting top talent: expanding high-potential visas

Not all policy moves focus on restriction. The government is also enhancing routes for ultra-skilled individuals:

High Potential Individual (HPI) visa expansion: Graduates from the world’s top 100 universities will qualify, with an annual cap of 8,000 applicants;

Global Talent route boosts: The list of awards and prizes that confer automatic endorsement will grow, aiding artists, scientists and tech innovators;

Possible shift to an invitation-only model for Global Talent, currently under consideration for launch in 2026.

With other countries, notably the US, imposing steep fees on skilled visas, the UK hopes to retain its competitive edge in attracting cutting-edge researchers and entrepreneurs.

Balancing costs and benefits

Ministers estimate the package will slightly reduce overall skilled migration numbers while generating additional training funds for the domestic labour market. However, critics warn of unintended side-effects:

Smaller firms may struggle with the increased ISC burden when recruiting niche skillsets abroad;

Universities fear a drop in international enrolments, affecting funding streams and campus diversity;

Businesses in industries such as IT, engineering and health could face talent shortages if the English test threshold proves too high for many foreign applicants.

To gauge the economic impact, the Office for Budget Responsibility (OBR) may assess the package during its next forecast, weighing the potential slowdown in growth against gains from enhanced training investments.

Official statements and next steps

Home Secretary Shabana Mahmood stressed the importance of integration: “This country has always welcomed those who contribute. But it is unacceptable for migrants to live here without speaking our language or playing their part.”

Parliament will debate the draft regulations this week. If approved, employers and educational institutions must prepare for January’s changes by retraining HR teams, updating visa sponsorship processes and revising international recruitment strategies.

Industry groups and think-tanks continue to lobby for transitional arrangements—particularly for current degree students and businesses mid-hiring cycle—to minimise disruption while reforms bed down.