UK Immigration Fees 2024: Insights on Recent Increases

1. UK Immigration Fees Structures and Policy

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People applying for visas, extensions, settlement, or British citizenship typically face various fees. These fees are pivotal in funding the operations of the Home Office’s immigration and border control. Additionally, applicants are subject to an immigration health surcharge to support the NHS, and employers face a levy for work visas. All fees are required to be paid upfront.

Recent Changes in UK Immigration Fee Structure

As of October 2023, application fees saw an increase, and the health surcharge followed in February 2024. The details of these changes are outlined below:

• Visitor Visa:
  • Previously £115 for six months.
• Student Visa:
  • Charged £490 for the duration of the course.
• Work Visa (Three-Year):
  • Set at £719.
• Spouse Permission:
  • Costs £1,048.
• Settlement Application:
  • Fees amount to £2,885.
• Naturalisation as a British Citizen:
  • Priced at £1,500.
• Immigration Health Surcharge:
  • This surcharge is applied to most temporary immigration permissions, except for visitor visas and asylum applications. The cost is £1,035 per year, or £776 for students and children. This surcharge is refundable if the visa application is denied.
• Immigration Skills Charge:
  • Employers sponsoring migrants for work visas are required to pay £1,000 per year, or £364 for smaller businesses.
  • This fee covers the sponsorship certificate and license renewals, and employers may also cover visa application and surcharge costs for their employees.
• Fee Exemptions:
  • Certain groups, such as asylum seekers or those under the EU Settlement Scheme, are exempt from these fees.
  • Additionally, children under local authority care also benefit from these exemptions.
• Fee Waivers:
  • Applicants may apply for fee waivers in specific categories, particularly family visas under Appendix FM and applications based on family or human rights grounds.
  • These waivers consider the financial inability to pay the fees.

Decision Making: Setting UK Immigration Costs

The UK government aims for a self-funded immigration system where the costs are primarily covered by the users rather than general taxation. The principles guiding fee setting include:

• Covering the costs of immigration services.
• Ensuring the system is funded to maintain and enhance border security and operations.
• Balancing economic impact with operational needs.

Impact and Oversight of Fee Adjustments

Fee levels are crucial as they directly influence the UK’s attractiveness as a destination for tourists and migrant workers. The government strives to balance the need for adequate funding with competitive fee levels to avoid deterring potential visitors and migrants.

Regulatory Framework and Legal Provisions

• Legal Basis:
  • Fees are set based on the Immigration Act 2014, which allows the Home Secretary to consider various factors, including administrative costs, economic benefits, and international standards.
• Parliamentary Oversight:
  • Changes to the fee structure require approval through secondary legislation, which includes both affirmative and negative procedures in Parliament.

Conclusion: Managing a Complex Balance

UK visa fees are more than just administrative charges; they are a blend of strategic policy tools aimed at managing the flow of migrants, supporting public services like healthcare, and ensuring that the immigration system is self-sustainable. This complex balance is managed through careful consideration of economic impacts, public benefits, and international comparisons, underpinned by a legal and parliamentary framework designed to ensure transparency and fairness in the fee-setting

2. Historical Overview of UK Immigration Fee

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Over the years, UK immigration fees have significantly increased above inflation rates, reflecting the government’s policy to utilize these fees to subsidize broader immigration system expenses. Additionally, the introduction of the immigration health surcharge in 2015 further escalated costs for applicants, enhancing government revenue simultaneously.

Early UK Immigration Fee Structures and Incremental Rises

Before 2003, immigration fees were relatively low or even non-existent for various applications:

• Naturalisation:
  • Cost £155 for British citizenship.
• UK Student Visa:
  • Was only £36.
• Permission to Stay (either ‘ILR’):
  • Introduced a fee of £155 on August 1, 2003.
• Work Permit Fees for Employers:
  • Set at £95 in the same year.

In 2003/04, the Home Office collected approximately £72 million from immigration and nationality fees, with an additional £112 million collected by the Foreign Office from entry visa fees, totaling £184 million.

Significant UK Immigration Fee Increases by Governmental Terms

Fee increases have been notably substantial during several government terms:

• Labour Governments:
  • Notable increases occurred in 2005, 2007, and 2010, each following comprehensive consultation processes.
• Coalition Government:
  • Initiated another series of fee increases later in 2010.

Post-2015, these fee hikes were supplemented by new and increased charges for the health surcharge:

• Spouse Visa Costs:
  • Escalated from £885 in 2014 to £3,395 in 2020 (including a £1,872 surcharge) and to £4,951 in 2024 (including a £3,105 surcharge).
• Immigration Skills Charge (ISC):
  • Introduced in 2017, this employer levy requires up to £1,000 per year for each sponsored work visa holder.

Analyzing the Impact of UK Immigration Fee Adjustments

The evolution of fees over time reflects a governmental shift towards a self-sustaining immigration system, less reliant on general taxation:

• 2003 to 2023 Revenue Shift:
  • From a combined fee income of £184 million in 2003/04 to £2,200 million in 2022/23, supplemented by £1,700 million from the health surcharge and £600 million from the skills charge.

Fee Justifications and Economic Implications

The justification for increasing fees extends beyond simple cost recovery:

• Economic Growth vs. System Funding:
  • The government balances economic growth with the need to adequately fund the immigration system. This balancing act involves setting fee levels that encourage economic activity while ensuring the immigration system is funded sufficiently to meet operational needs.

Long-Term Fee Trends and Real-Term Adjustments

Fee adjustments consider various factors, including the economic impact on prospective migrants and the overall fiscal health of the immigration system:

• Settlement and Naturalisation Fees:
  • For instance, the fee for indefinite leave to remain started at £155 in 2003, peaked at £2,300 in 2017, and adjusted to £2,885 recently, reflecting a stabilization in real-term costs considering inflation.

Conclusion: The Broader Fiscal Landscape of UK Immigration Fees

UK immigration fees are a complex blend of fiscal policy, economic considerations, and regulatory compliance. These fees not only fund the immigration and border management system but also reflect the government’s strategy to make the system largely self-financed. This approach helps align the costs of immigration with those who benefit most directly, thereby minimizing the financial impact on UK taxpayers.

3. Recent UK Immigration Fee Increases

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In 2023, the UK Government announced significant increases to both application fees and the health surcharge, marking a pivotal shift in immigration-related costs. These changes aim to better align immigration fees with the economic needs of the country while addressing fiscal responsibilities toward public sector salaries.

Details of the Recent UK Immigration Fee Increases

Effective Dates:

• Application fee adjustments took effect on October 4, 2023, and the health surcharge increase on February 6, 2024.

Extent of Increases:

• Work and Visitor Visas:
  • Increased by 15%.
• Family Visas, Settlement, and Citizenship:
  • Increased by 20%.
• Student Visas:
  • Increased by 35%.
• Immigration Health Surcharge – IHS:
  • Increased by 66%, from £624 to £1,035 per year for most applicants, and from £470 to £776 for students and under-18s.

Financial Implications

• Example:
  • A three-year Skilled Worker visa in a shortage occupation, previously costing approximately £2,350 (including surcharge), now costs about £3,650, excluding any employer levy or sponsorship certificate costs.
• Projected Revenue Increase:
  • The application fee hike is expected to generate an additional £560 million annually by 2024/25, indirectly supporting a police force pay rise. The surcharge increase is anticipated to raise an additional £1.1 billion annually, contributing to a pay raise for doctors.

Legislative Process and Reaction

• Reaction to Fee Changes:
  • Notable figures like barrister Colin Yeo have critiqued the rationale behind linking fee increases to police pay, citing legal constraints. Madeleine Sumption from the Oxford University Migration Observatory highlighted the disproportionate impact on different visa applicants, particularly those seeking family visas. Widespread opposition was noted from migrants’ rights organizations and trade unions.
• Regulatory Implementation:
  • Application Fees: Increased through regulations enacted under the negative procedure, requiring no parliamentary approval, effective from October 4, 2023.
  • Health Surcharge (IHS): The 66% increase required a change to the Immigration (Health Charge) Order 2015, implemented under the draft affirmative procedure, which involved a positive parliamentary vote, effective from February 6, 2024.

Long-term Financial Forecast

The health surcharge adjustment is projected to generate £6.2 billion in additional revenue by 2028, as per the government’s impact assessment. This substantial increment reflects the government’s ongoing strategy to fund the migration and border system more robustly through fees, reducing dependency on taxpayer money.

Conclusion: Recent UK Immigration Fee Increases

The 2023 and 2024 adjustments to UK immigration fees and surcharges represent a significant shift in how the government plans to fund its immigration services and contribute to public sector salaries. While these changes aim to enhance fiscal sustainability, they also raise concerns about accessibility and fairness within the immigration system, signaling a need for continuous review and balanced policymaking.

4. Royal Society Analysis: UK Immigration Fee Increases

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The Royal Society commissioned an analysis of upfront immigration costs for the UK and 16 other leading science nations, focusing on primary visa categories for researchers. This summary highlights the findings for UK Skilled Worker, Global Talent, Student, and Graduate visas alongside their international equivalents.

• Rise in Costs:
  • Between 2019 and 2021, total upfront UK immigration costs increased by up to 43%, depending on the visa type.
• Comparative Costs:
  • UK upfront costs are higher than those in all other studied countries.
  • Including the UK in the average calculation shows costs two to five times higher than average. Excluding the UK, costs are up to ten times higher.
• Employer Visa Costs:
  • While the UK’s employer visa costs are high, they are comparable to those in Australia, France, Israel, and the USA for skilled workers and researchers.
• Immigration Health Surcharge (IHS):
  • As of October 2020, the IHS increased from £400 to £624 annually, contributing significantly to the upfront costs—a five-year visa incurs £3,120 in IHS alone, in addition to visa fees.
• Skilled Worker Visa:
  • These visas are notably costly for roles below PhD level, such as technicians, requiring up to £5,000 in UK Immigration Skills Charges depending on the employer’s size.
• Dependant Costs:
  • For families, costs multiply significantly. A family of four on a five-year Skilled Worker visa could face charges up to £21,790.
• Global Talent Visa (GTV):
  • With IHS: The GTV is the most expensive route compared to other leading science nations, considering both applicant and employer costs.
  • Without IHS: While the applicant’s cost is higher than the average (£608 vs £181), it’s slightly lower than the average total upfront costs (£608 vs £643).
  • Family Costs: A family of four on a five-year GTV will pay £13,372 upfront.
• Settlement Costs:
  • The UK ranks third highest in settlement costs among European nations offering dedicated research visa schemes, trailing only France and Switzerland.

This analysis underscores the substantial financial burden of UK immigration fees, especially when health surcharges and employer levies are considered, impacting the attractiveness of the UK as a destination for international researchers and skilled workers.

5. Comparative Analysis: Global Immigration Costs

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The 2021 report by the Royal Society highlighted the stark differences in total upfront immigration costs across various countries, with the UK emerging as notably higher than peers like Canada, Germany, France, and the USA. This comparison sheds light on the financial burden faced by immigrants and the economic implications of such policies.

Immigration Cost Comparison Details

UK Skilled Worker Visa:

• The combined costs for a five-year visa sponsored by a large company—including application fees, employer contributions, and the health surcharge—amount to approximately £9,700.
• This figure is 790% higher than the average costs in the countries studied, making it the most expensive scenario analyzed.

International Comparisons:

• Germany:
  • A Job-Seeker Residence Permit costs about £65.
• Canada:
  • The Global Talent Stream application fee is around £700.
• Switzerland:
  • An L&B Permit costs approximately £1,000.
• USA:
  • The H1B Specialty Occupation visa, the closest equivalent to the UK’s Skilled Worker visa, costs about £6,700.

Factors Influencing Immigration Costs

• Health Surcharge:
  • A significant portion of the UK cost is attributed to the upfront immigration health surcharge.
  • In contrast, other countries typically require ongoing health insurance payments, which are not included in the initial immigration fees.
• Visa Duration:
  • The UK Skilled Worker visa generally offers a longer duration than some of its international equivalents, which can justify part of the higher cost.
• Without Surcharge:
  • Excluding the health surcharge, the UK’s upfront costs for a Skilled Worker visa remain higher than all other studied countries except the USA and Australia.

Costs for Other UK Visas

• Graduate and Global Talent Visas:
  • These categories are cheaper in the UK compared to the international average, especially as they do not include an employer levy, making them more affordable for individuals and small businesses.

Family Visa Cost Comparison

Institute for Government Findings (2019):

A family of five moving to the UK on a five-year intra-company transfer visa faces costs exceeding £21,000, compared to:

• Australia:
  • £10,000
• France:
  • £2,700
• Germany:
  • £750
• Canada:
  • £670

The significant discrepancy for the UK is largely (but not solely) due to the health surcharge, which accounted for nearly half of the total cost in the UK scenario.

Conclusion: Evaluating the Financial Impact of Immigration Policies

This analysis underscores the high financial demands placed on immigrants to the UK, influenced heavily by the unique health surcharge. While providing essential funding for healthcare services, these costs could potentially deter skilled workers and families from choosing the UK as their destination. The ongoing discussion around balancing economic growth with immigration funding remains crucial as the UK navigates post-Brexit immigration reforms.

6. FAQs: Understanding UK Immigration Fees and Policies

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For further information and details, please refer to House of Common Library.