In a move announced by the Prime Minister in July, the UK is set to witness an escalation in visa, immigration, and nationality fees, effective from October 4, 2023. Here, we delve into the detailed reasons behind these fee increases, shedding light on the implications for applicants.

The Home Office’s decision to revise fees encompasses various categories, including visas, extensions, and nationality applications. Notably, the majority of these fee adjustments surpass the general inflation rate, marking a significant change in the cost landscape for immigration processes.

WHY are the fees being increased
1. Varied Increases: The fee increments proposed by the Home Office exhibit diversity, with most exceeding the general inflation rate. This spans visas, extensions, and nationality applications.

2. Stability in Sponsor Licence Fees: While the fees for sponsor licences for employers remain unchanged, there is a 20% increase in Certificates of Sponsorship.

3. Settlement Application Surge: Settlement application fees are set to surge by 20%, posing a considerable impact on individuals seeking permanent residency.

4. Work and Visit Visa Fee Hikes: The fees for the majority of work and visit visas are witnessing a 15% increase, with a more modest 6% uptick for visitor visas lasting under two years.

5. Aligned Priority Service Costs: Fees for expediting applications, both within and outside the country, are being standardized. The priority service (within five working days) will now cost £500,
while the super priority service (one working day) escalates to £1,000.

6. Immigration Fee Inflation: Most immigration fees are set to rise well above the inflation rate. Interestingly, two decades ago, the Home Office did not levy charges for visa extensions, work permits, or settlement applications.

7. Immigration Health Surcharge (IHS) Increase: Adding to the financial burden, the mandatory Immigration Health Surcharge (IHS) is also due for an approximately 66% increase, surging from £624 to £1,035 annually. For students, children, and youth mobility visa holders, the discounted rate rises from £470 to £776 per year. Notably, the IHS has tripled since its 2015 introduction when it stood at £200.

In perspective, an adult on a five-year visa will need to allocate £5,175 towards IHS over their stay duration, in addition to the visa application fees. The IHS hike is anticipated to take effect in the early months of the next year, further impacting the overall cost of immigration for applicants.