UK Immigration 2025: Key Changes and What You Need to Know
These are the most significant UK immigration changes in 2025 and what they mean for businesses
17 January 2025 | Kevin Nkrumah
2025 is another year of change for UK immigration. Significant updates to visa regulations, workforce mobility, and compliance requirements are all on their way.
Let’s look at the latest updates and how to adapt. From sponsorship costs to electronic travel authorisation (ETA) requirements, here’s what you need to know to keep your business running smoothly and growing steadily.
UK Immigration 2025: Key Updates
1. Sponsorship and Skilled Worker Visa Changes
Over the past few years, UKVI has made it crystal clear that enforcing sponsor compliance is a top priority. In 2024, the government took a stricter and more focused approach to sponsor licence compliance. Notably, 513 skilled worker sponsor licences had been revoked by Q3 of 2024, surpassing the total of 377 revocations in all of 2023. Sponsorship is viewed as a privilege to be earned and not a right; therefore, this increased scrutiny will continue into 2025.
UKVI has already begun implementing measures and updated its guidance to introduce a new set of restrictions on skilled worker sponsors from passing on the cost of a sponsor licence application or associated administrative costs to a sponsored worker.
2. New Sponsorship Costs
The UK government has implemented a significant policy shift regarding sponsorship costs for skilled workers. Effective December 31, 2024, sponsors are prohibited from passing on certain sponsorship costs to skilled workers. This change aims to address concerns about work-related debt and exploitation.
The following costs are now prohibited from being passed on to sponsored employees:
- Sponsor Licence Fee: This includes the fee for new sponsor licence applications or adding the Skilled Worker route to an existing licence, submitted from December 31, 2024, onwards.
- Certificate of Sponsorship Fee: It is now prohibited to pass on the fee for a Certificate of Sponsorship assigned on or after December 31, 2024.
These prohibitions align with the existing rule against passing the Immigration Skills Charge to workers. Other immigration-related costs, such as visa application fees, Home Office commercial partner service charges, and Immigration Health Surcharges, can still be recouped by the employer.
3. Penalties for Non-Compliance
Non-compliance with these new regulations can lead to revocation of your sponsor licence. This can result in reputational damage, financial losses, and significant disruption for existing sponsored workers.
Employer Responsibilities
Employers should take the following steps to ensure compliance:
- Review and Update Policies: Review and update internal immigration policies and employment policies related to sponsorship costs.
- Review and Update Agreements: Review and update employment contracts, side letters, and “clawback” agreements related to sponsorship costs.
- Budgetary Considerations: Assess the impact of these changes on the company’s immigration budget and its potential consequences for future recruitment and sponsorship.
- Stay in the Loop: Changes to UKVI policy will continue, so it will be important to remain on top of key changes.
2. Electronic Travel Authorisation Scheme
As set out in our previous blog post, the ETA grants permission to travel to the United Kingdom—similar to the US Electronic System for Travel Authorization. The ETA applies to UK visitors who do not need a visa for tourism, transit, visiting family and friends, business, or short-term study. It also applies to those coming to the UK for up to three months on the Creative Worker visa concession and to those coming for a permitted paid engagement.
It is not applicable for those who hold a UK visa, those with permission to reside to live, work, or study in the United Kingdom, or for British or Irish nationals.
Key Dates And Eligibility
The scheme will be mandatory for non-European nationals, including US nationals, starting on January 8, 2025.
The scheme has been live since October 2023. The rollout dates are as follows:
- Non-European Nationals: As of November 27, 2024, eligible non-European nationals can apply for an ETA for travel to or transit through the United Kingdom from January 8, 2025.
- European Nationals: Eligible European nationals can apply from March 5, 2025, and will need an ETA from April 2, 2025.
- Universal Requirement: From April 2025, all travellers to the United Kingdom (except British and Irish citizens) will need either an ETA or an eVisa.
UK ETA Vs UK Visitor Visa
The ETA is not a visa and does not grant the right to live or work in the United Kingdom. The visitor visa rules still bind visitors, and they must comply with these regulations. Those needing to work in the United Kingdom must obtain the appropriate visa before travelling.
Employer Responsibilities
- Employers should review their travel needs for the next six to eight months to ensure that affected overseas employees have the necessary ETAs. Failing to obtain an ETA can lead to delays or refusal of entry to the United Kingdom.
- Employers may also wish to provide updates to their employees on the rollout of the scheme.
- Employees should ensure that they have sufficient passport validity and ensure timely submission of their ETA application. Employees should flag any concerns they may have about the application as soon as possible.
3. Transition to eVisas
UK Visas and Immigration (UKVI) will continue the transition to a fully digital immigration system. In 2024, the process began to replace physical documents, such as the biometric residence permit (BRP), with digital eVisas. UKVI has confirmed that expired documents will be valid for international travel for a limited time until 31 March 2025.
This is because individuals were facing technical issues in obtaining eVisas, plus concerns that the technical issues could lead to a Windrush-style scandal. This extended timeline will most likely be kept under review.
Employer Responsibilities
If your employees hold a BRP, they can continue to use it as evidence of their permission to travel to the UK until 31 March 2025. They should still create an eVisa account on the gov.uk website (if they have not already done so).
Creating an eVisa account will allow your employees to access and update their immigration status online, as well as provide evidence of their right to work and right to rent.
4. Changes to students and graduates switching onto the Skilled Worker route
The Graduate visa remains a valuable option for businesses seeking to hire international graduates from UK universities.
As of 22 November last year, the “Tier 4” student graduate switching to a skilled worker certificate of sponsorship (CoS) is no longer available on the sponsor management system.
The way that CoS are assigned to individuals who are switching from the student or graduate route into the skilled worker route has been updated. This is now reflected in each company’s sponsor licence system.
Those who wish to sponsor a worker with current permission as a student who wants to apply to a skilled worker route must now use the new CoS category of “Skilled Work (Student course complete switching to Skilled Worker)”.
Students directly switching to the skilled worker route will continue to be exempt from the immigration skills charge.
This change has been welcomed as many sponsors could mistakenly choose the incorrect category when trying to sponsor graduates, which can lead to either a refusal or a delay in making a decision on the application.
Employer Responsibilities
Industries such as technology, finance, and healthcare have leveraged the Graduate visa to address skill shortages. For instance, a fintech startup in London recently hired three graduates under this route, significantly reducing costs.
As the UK government reviews post-study work policies, businesses should monitor potential changes that could enhance or restrict access to international graduates.
5. Right-to-Work
When hiring individuals, it is paramount that right-to-work checks are correctly carried out. Even more so for those who hold a sponsor licence and are hiring individuals from abroad.
Extension of who the right-to-work checks must be carried out on
As of 23 September last year, the right-to-work guidance also applies to employers who employ staff under a service or apprenticeship, as well as via the use of a contract of employment, whether express or implied and whether oral or in writing. This means that where the worker is not a direct employee, the right-to-work check must be carried out, and evidence must be kept that this has been undertaken. Once this has been completed, the business will have complied with its sponsor duties.
Employer Responsibilities
The employer is considered liable for the civil penalty if the right-to-work checks are not carried out correctly. It is the liability of the employer and not the members of staff carrying out the checks. Even if a business is using an external identity service provider, it is the employer’s obligation to ensure compliance.
The employer will still be liable for the civil penalty in two cases. First, is found at a later date that an employee is working without the relevant right to work. Secondly, if it is “reasonably apparent” that the check was not carried out correctly. A check being carried out by a third party is not a statutory excuse unless the check is made on British and Irish nationals who hold a valid passport.
Looking Ahead
2025 promises more change for UK immigration. As the UK immigration system goes fully digital, employers should stay alert to new developments.
From the expansion of the ETA scheme to potential changes in visa sponsorship linked to training, businesses must keep abreast of any changes to ensure compliance while leveraging a diverse talent pool.
For tailored advice on UK immigration policies or to explore how our solutions can support your business, contact us today.
FAQs
What are the new sponsorship costs in 2025?
Sponsorship costs have increased, reflecting the government’s aim to manage net migration. Employers should review their budgets to accommodate these changes.
Who needs an ETA to travel to the UK?
Citizens from countries previously exempt from visa requirements must apply for an ETA starting in 2025. This includes short-term business visitors.
Can businesses still hire international graduates?
Yes, the Graduate visa allows businesses to hire international graduates without sponsorship for up to two years post-study.
How can businesses stay updated on immigration policies?
Regularly consult government updates and partner with immigration experts to ensure compliance and strategic alignment.