UK – Further Increase to Immigration Fees Proposed

On 16 January 2025, the U.K. government announced proposals to increase certain immigration fees.¹ The proposed changes were laid before Parliament on 16 January and will provide for flexibility to increase the maximum fee that can be charged on a range of immigration and nationality products and services including Electronic Travel Authorisation (ETA); Certificate of Sponsorship; Naturalisation as a British Citizen; and Naturalisation as a British Overseas Territories Citizen.

The legislation is subject to parliamentary debate and approval by both Houses. If approved, the proposed increases in fees will be introduced by amending separate legislation. Given the legal and administrative processes that need to be followed, a definitive date for the introduction of the fee increases has not been confirmed.

WHY THIS MATTERS

For employers that provide financial and administrative support for immigration applications, any further immigration and visa fee increases may impact budgeting decisions and existing financial support policies. Increased immigration costs may also impact talent recruitment and mobility programmes, whilst potentially restricting continued access to global talent.

Background

The driver for the new measures is the U.K. government’s aim to reduce reliance of the migration and borders system on taxpayer funding. It is forecast that the proposed fee increases will generate an additional £269 million revenue a year.²

Further Details

The following fee increases have been proposed by the government:

ETA fee rising to £16 from the current £10;
Certificate of Sponsorship fee rising to £525 from the current £239;
Naturalisation as a British Citizen fee rising to £1,605 from the current £1,500;
Naturalisation as a British Overseas Territories Citizen rising to £1,070 from the current £1,000.

KPMG LLP (U.K.) INSIGHTS

Employers may wish to consider reviewing their recruitment and workforce planning strategies from a budgeting perspective. They may also wish to consider contingency planning to determine whether applications can be front-loaded (for supported applications) in the instance that fee increases are introduced with little or no notice.

Provision should be made for the review of communication strategies and internal company guidance to help ensure that any fee increases are accurately reflected for key stakeholders who may use these for workforce planning.

Employers should also consider being in regular contact with their immigration counsel to make sure that they are undertaking the appropriate impact analysis on their business.

Footnotes:

1 Home Office, "Next steps for a more efficient immigration system" (published 16 January 2025).

2 Ibid.

Contacts

Nadia Idries

Director & Solicitor

KPMG in the UK

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Disclaimer

* Please note the KPMG International member firm in the United States does not provide immigration or labour law services. However, KPMG Law LLP in Canada can assist clients with U.S. immigration matters.

The information contained in this newsletter was submitted by the KPMG International member firm in the United Kingdom.

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United Kingdom – Further Increase to Immigration Fees Proposed