In a recent article published by the Bureau of Investigative Journalism (TBIJ), it was highlighted that immigration may not be the financial burden the government suggests but instead helps the public purse through steep immigration fees.
Immigration fees typically increase on annual basis, in April of each year, with ad hoc increases not unheard of. The latest UK visa fees table (coming into force on 8 October 2026) remains stable and is welcome reprieve from any imminent increases, however, employers and individuals should still refresh themselves on what exactly they could be required to pay and why.
Prior to 2003, the UK charged nothing for in country applications or settlement and initial visa applications fees were low, e.g., a student visa cost £36. At this time, the aim of fees was to cover the administrative cost of processing an application. However, from 2003 onwards this all changed, and progressive fee increases over the last 23 years have meant that in 2025/2026 the government brought in £4.93 bn in profit from immigration fees.
The rationale for increased visa fees was and continues to be that those who use the immigration system should contribute to the economic cost of the end-to-end system. The fees are said to contribute towards wider immigration activity such as the appeals process and enforcement activity.
When we look at the Immigration Health Surcharge (IHS), introduced in 2015, this was to ensure “migrants make a proper financial contribution to the cost of their NHS care” and is in addition to their contribution as UK taxpayers.
Employers of sponsored migrants have felt the burden too since the introduction of the Immigration Skills Charge (ISC) in 2017. This is a skills levy, and the cost cannot be passed on to the sponsored worker. The ISC was introduced to incentivise employers to recruit and train domestic workers. There is a lack of clarity on where this income is being invested but following a 32% increase in May 2025, the Home Office stated that the increased charge would “support skills funding for priority sectors to upskill the domestic workforce and reduce reliance on migration over the medium term”.
If we take an individual Skilled Worker with no dependants, the total cumulative cost from initial visa to Indefinite Leave to Remain (ILR) (settlement) in the UK would cost in the region of £10,000 in visa application fees alone. This does not account for the ISC which would be a cost paid by the employer and can range from £2,400 to £6,600 depending on the size of the sponsor.
British nationals too can feel the cost of visa application fees. A partner (or spouse) visa allows the partner of a British citizen (or settled person) to join and live with them in the UK. In this case, the cumulative cost from initial visa to settlement would cost in the region of £12,500.
The processing time for a visa can vary from application to application. In some cases, it can be three weeks but in the case of an initial partner (or spouse) application it can take 12 weeks when filing from overseas. When individuals get to ILR stage, the standard processing time is six months – during which time individuals are unable to travel outside of the UK or Common Travel Area or risk their application being withdrawn automatically.
The Home Office does allow visa applications to be prioritised for an additional fee. In most cases, individuals can pay £500 (per applicant) for a decision on their application within 5 working days or £1,000 (per applicant) for a decision on their application within 24 hours. These fees are of course optional but for many, being grounded in the UK may not be.
The Earned Settlement proposals remain in consultation with the Home Office suggesting they will be introduced later this year. The outcome of these proposals remains to be seen but with the headline being that the eligibility period could increase from five years to ten, government profit looks set to increase.
Whether you are a business or an individual, our Immigration team can discuss long-term strategies with you and analyse the cost benefit to you and your employees.
