The UK Government has now confirmed that the price increase in the Immigration Health Surcharge (IHS) will come into force in January 2024.

The NHS is made up of a wide range of different organizations with different roles, responsibilities, and specialities in the healthcare industry. It is the British residence-based healthcare system.

These organizations provide a variety of health services and support to patients and carers throughout the UK. These services cover booking a general practitioner or GP; prescriptions, pharmacies, vaccinations, hospitals, operations, dental treatment, mental health services and more. These are mandatory in the UK for all residents to have the right to – hence the name National health Services. All foreigners arriving in the UK on a working visa or a UK residency card, must pay for these services in advance according to the number of years in the Uk that they plan to stay and the number of family members that are arriving. There are also exemptions via some routes such as healthcare routes as a benefit to health and care workers coming to the UK or if you are applying for indefinite Leave to Enter or Indefinite leave to remain.

Over recent years there have been changes to the way the NHS is structured and works. The likelihood is that you may not have even noticed this – it won’t have affected how you access your local doctor or hospital. But the changes have affected who makes decisions about health services and who holds the budget to pay for these services.

You can find out more about the NHS structure in England and what services there are, by visiting the NHS website. The King’s Fund has also produced a series of structure diagrams and a short animation about the NHS. 

As a reminder, the IHS is payable by anyone coming to the UK for more than six months, giving them access to the same NHS services as UK nationals and permanent residents. The IHS must be paid upfront when an applicant submits an application to enter or remain in the UK, at the same time as other immigration fees.

 In contrast to certain charges (such as the Immigration Skills Charge- see below), employers are not required to pay this charge, though it is common for employers to include the charge as part of an employee’s employment package.

The health surcharge under the UKVI is set for a huge increase of around 66%, from the current rate of £624 per person per year to £1,035 per person per year. 

There is a discounted rate for students and those under 18 is also increasing from £470 to £776 per person per year.

In light of this, employers should:

• Consider the impact this fee increase will have on recruitment budgets – look ahead to foreseeable recruitment needs to identify whether to continue in light of the increased expenditure or whether to bring recruitment plans forward to avoid higher charges;
• Review sponsorship needs and submit applications for initial sponsorship, extension and/or settlement ahead of the fee increases;
• Consider applying for the maximum duration of five years’ sponsorship to take advantage of a lower IHS throughout the duration of the applicant’s stay in the UK; and
• Review Certificate of Sponsorship (CoS) allocations and request increases so that employers can obtain the right number of CoS ahead of the increase date – consider using the Priority Change of Circumstance service to ensure approval is received within days, not weeks.
• Since the full amount is required to be paid to upfront, it is important to state that a full refund will be granted if the visa is refused. 

For more information about how our UK immigration professionals can assist you, contact our expert team today at [email protected]