UK is making it easier for businesses to hire skilled foreign workers

The UK has announced steps to make it easier for local businesses to hire foreign workers, with the Home Office announcing a major change in the way sponsor licenses are renewed. Effective April 6, the requirement to renew licenses every four years will be abolished, offering significant relief to businesses sponsoring skilled workers from outside the UK.

This development will streamline the process for employers who previously faced the administrative burden and cost associated with periodic renewals. Under the previous system, sponsors were required to submit applications 90 days before the expiry date, incurring fees ranging from £536 to £1,476 depending on their size and charity status. Processing times for renewals could also stretch up to eight weeks.

Recognizing the challenges and aiming to improve efficiency, the Home Office has opted for a more automated approach. Existing sponsor licenses expiring on or after April 6, 2024, will be automatically extended by ten years, eliminating the need for renewals altogether. Sponsors holding valid licenses within this timeframe are not required to take any action – their licenses are automatically covered by the extension.

The Home Office has said it will contact sponsors who have already initiated the renewal process to arrange the refund of their application fee. To verify their license expiry date, sponsors can access the "License Summary" section within the online Sponsorship Management System (SMS).

Immigration has been a contentious point in the United Kingdom. UK PM Rishi Sunak's government is set to significantly raise the costs associated with hiring overseas personnel. Last December, the Sunak government announced new measures, including a significant hike in the salary requirement for those aspiring to live in the UK.

As per the new rules, individuals seeking working visas must now earn £38,700, a substantial increase from the previous £26,000. The government is trying to decrease net annual immigration by 300,000 in the coming years. Additional curbs include a restriction on overseas care workers, preventing them from bringing family dependents. The government also intends to terminate the 20% salary discount that firms can offer workers on the shortage occupation list.