The government has put forth a proposal to raise the immigration health surcharge, scheduled to come into effect on January 16, 2024, or 21 days after receiving approval from Parliament, whichever is later. This change will impact individuals and organisations and necessitates careful planning regarding visa applications.

Reasons Behind the Planned 2024 Increase 

The UK is planning to raise the Immigration Health Surcharge (IHS) in 2024 for the following reasons:

• To ensure that migrants contribute to the cost of NHS services. The IHS is a fee that is paid by migrants who are coming to the UK to live and work for more than 6 months. It gives them access to the NHS during their stay in the UK. The government believes that it is fair for migrants to contribute to the cost of the NHS, just like UK residents do through their taxes.

• To keep the IHS in line with rising healthcare costs. The cost of providing NHS services has been rising in recent years. The government wants to make sure that the IHS covers the full cost of providing NHS services to migrants.

• To maintain the sustainability of the NHS. The NHS is a vital public service, but it is also under financial pressure. The government wants to make sure that the NHS is sustainable for the long term.

In addition to these reasons, the government has also said that the increase in the IHS is necessary to comply with its manifesto commitment to make sure that migrants pay the full cost of their NHS use.

The government has also published an Equality Impact Assessment (EIA) for the proposed increase in the IHS. The EIA concludes that the increase will have a disproportionate impact on some groups of people, such as low-income migrants and migrants with families. 

Significant Rate Hike in Primary Immigration Health Surcharge

The increase in the IHS will make it more expensive for migrants to come to the UK and live and work here. This is likely to have a disproportionate impact on low-income migrants and migrants with families.

• Reduced migration: Some migrants may delay or cancel their plans to come to the UK because of the increased IHS. This could have a negative impact on UK businesses that are planning to recruit migrant workers.

• Financial hardship: Migrants who are already living in the UK may find it more difficult to afford the increased IHS. This could lead to some migrants having to delay or cancel medical treatment.

• Increased healthcare costs: If more migrants delay or cancel medical treatment, this could put additional strain on the NHS.

The increased IHS could have a number of negative impacts on the UK, including:

• Reduced economic growth: Migrants play an important role in many sectors of the UK economy. If fewer migrants come to the UK, this could have a negative impact on economic growth.

• Increased healthcare costs: If more migrants delay or cancel medical treatment, this could put additional strain on the NHS.

• Social and cultural impacts: Migrants make a significant contribution to British society and culture. If fewer migrants come to the UK, this could have a negative impact on social and cultural life.

Visa Fee Adjustments in Addition to Immigration Health Surcharge

In addition to the increase in the immigration health surcharge (IHS), the government also increased visa feesfor tourists, students, and foreign workers in October 2023.

• Visa fee adjustments for tourists

Visit visas for stays under six months increased by £15. This means that tourists from outside the UK will now pay £15 more to apply for a visa to visit the UK for a period of up to six months.

• Visa fee adjustments for students

Student visas for applicants from outside the UK increased by £127. This means that international students will now pay £127 more to apply for a visa to study in the UK. The government has stated that this increase is necessary to align the cost of student visas with the cost of in-country student visa applications.

• Visa fee adjustments for foreign workers

Visa fees for foreign workers were not increased in October 2023. However, the government has stated that it is reviewing visa fees for all categories of migrants. It is therefore possible that visa fees for foreign workers will be increased in the future.

Who Qualifies for the Exemptions and Reductions for IHS

The following categories of migrants are eligible for exemptions or reductions from the Immigration Health Surcharge (IHS):

Here are some additional details about the IHS exemptions and reductions for each category of migrant:

• Asylum seekers and refugees: Asylum seekers and refugees are automatically exempt from the IHS.

• Dependants of UK citizens and permanent residents: Dependants of UK citizens and permanent residents who are coming to the UK to live with their family members are exempt from the IHS.

• Temporary workers who are paid below the National Living Wage: Temporary workers who are paid below the National Living Wage are eligible for a reduction in the IHS. The amount of the reduction will depend on the worker's salary.

• Students who are studying for a UK degree: Students who are studying for a UK degree are eligible for a reduction in the IHS. The amount of the reduction will depend on the length of the student's course.

• Seasonal agricultural workers: Seasonal agricultural workers are exempt from the IHS.

• Victims of modern slavery or human trafficking: Victims of modern slavery or human trafficking are exempt from the IHS.

• People with a long-term health condition who require specialist NHS treatment: People with a long-term health condition who require specialist NHS treatment may be eligible for an exemption from the IHS. The application process for this exemption is complex and it is advisable to seek professional advice.

• Children under the age of 18: Children under the age of 18 are exempt from the IHS.

FAQS

What is the Immigration Health Surcharge (IHS) in the UK?

The Immigration Health Surcharge (IHS) is a fee that non-EEA nationals, including students, workers, and family members, must pay as part of their immigration application to access the National Health Service (NHS) in the UK.

Why is the UK planning to hike the Immigration Health Surcharge in 2024?

The government periodically reviews the IHS fee to ensure it adequately covers the cost of healthcare services provided to migrants. An increase is often implemented to align with rising healthcare costs.

When will the increase in the Immigration Health Surcharge take effect in 2024?

The specific effective date for the IHS hike in 2024 should be provided by the government when the increase is formally announced.

How much will the Immigration Health Surcharge be increased by 2024?

The exact amount of the increase in the IHS fee for 2024 will be determined and announced by the government closer to the implementation date.

Who is required to pay the Immigration Health Surcharge?

Non-EEA nationals applying for a visa to live, work, study, or join family members in the UK are typically required to pay the IHS as part of their visa application.