Record-Breaking Sponsorship Licence Revocations in 2024
New data from the Home Office highlights a concerning rise in sponsorship licence suspensions and revocations. In Q2 2024 alone, 1,023 employers faced licence cancellations—almost double the 519 recorded in Q1. This is a sharp contrast to Q2 2023, which saw just 89 suspensions and 28 revocations.
What’s Behind the Increase?
UK Visas and Immigration (UKVI) is cracking down on sponsor compliance to address potential system abuses. Key factors include:
- Stricter Penalties: Civil fines were raised in February 2024 to £45,000 for initial breaches and £60,000 for repeat offences.
- Targeted Scrutiny: Industries like nursing, care homes, and hospitality are under heavy investigation, with construction and racing likely to face similar attention soon.
Impact on Employers and Workers
Licence suspensions and revocations have severe consequences:
- Suspensions: Employers can’t hire new migrant workers, and existing employees may face visa restrictions. Action plans must be implemented swiftly to lift the suspension.
- Revocations: Employers lose their sponsorship capabilities for 12 months, and all current Certificates of Sponsorship are immediately cancelled.
For affected employees:
- Sponsored workers have 60 days (or the remainder of their visa if less than 60 days) to find a new sponsor or leave the UK.
- Those applying for UK entry clearance will have their visas cancelled, barring their entry into the UK.
Visa Rule Changes and Their Impact
Further reforms introduced in April 2024 have compounded challenges:
- Increased Salary Thresholds: The minimum salary now stands at £38,700, up from £26,200.
- Dependent Restrictions: Care workers can no longer bring dependents under new visa rules.
These changes have led to significant declines in work visas:
- Overall work visas dropped by 11%, reaching 286,382 in the year ending June 2024.
- Health and care worker visas saw a 26% decline compared to the previous year.
How Employers Can Mitigate Risks
To navigate this evolving landscape, employers should:
- Prioritise Compliance: Maintain accurate and up-to-date sponsor records and prepare for potential audits.
- Strengthen Right-to-Work Checks: Ensure all employees are compliant with legal requirements.
- Plan Ahead: Assess workforce needs and consider investing in skills training to reduce dependency on migrant workers.
While these measures can mitigate risks, they also add to the financial and administrative challenges facing businesses in the UK.
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