UK Immigration Rules: What’s Changing in 2025?

Tightened Sponsor Compliance Rules

One of the central themes in 2025 is stricter oversight of sponsor licence holders. The government aims to align immigration sponsorship more closely with employment law compliance and deter the misuse of the sponsorship system.

Key developments include:

• Creation of a Fair Work Enforcement Body: This new agency will have powers to deny, suspend, or revoke sponsor licences where sponsors are found to be breaching employment rights.
• Two-Year Cooling-Off Period: Employers who lose their sponsor licence due to serious or repeat non-compliance may be banned from reapplying for up to two years.
• Increased Monitoring Powers: The Home Office will receive expanded powers to conduct compliance visits and audits, especially in high-risk sectors.
• Ban on Passing Sponsorship Costs to Workers: Employers can no longer pass certain visa-related costs (e.g., Certificate of Sponsorship fees, Immigration Skills Charge) to sponsored Skilled Workers.

Practical impact: Employers must ensure robust HR systems are in place to monitor right-to-work compliance and maintain accurate sponsorship records. Regular internal audits and compliance training are highly recommended.

Changes to Sponsor Licence Management

In December 2024, several new requirements came into force, continuing into 2025. These changes affect both existing and prospective sponsor licence holders:

1. No Individual Sponsorships: Sponsorship applications submitted by individuals acting in a personal capacity will be refused.
2. New Level 1 User Requirement: The primary Level 1 User on a licence must now be a settled employee or officeholder in the business.
3. Assessment of Persons with Significant Control (PSC): The Home Office may now assess whether individuals with substantial influence over the business pose a compliance risk.

Higher Fees and Financial Barriers

In Spring 2025, immigration-related fees are expected to rise again. This follows increases already introduced in 2024, including:

• 20% hike in work and visit visa application fees
• 35% increase in the Immigration Health Surcharge (IHS)

Further rises are anticipated across a range of applications, including:

• Sponsor licence applications
• Certificate of Sponsorship (CoS) assignments
• Naturalisation and settlement fees
• ETA applications (for visa-exempt travellers)

Implications: Employers sponsoring foreign nationals should budget for higher upfront costs and review their internal policies regarding fee reimbursement or clawback agreements.

Increased Enforcement of Illegal Working Laws

The government is intensifying its crackdown on illegal employment, especially in construction, hospitality, agriculture, and logistics.

In 2024 alone:

1. Over 6,000 enforcement visits took place
2. Arrests rose by over 20%
3. Civil penalties for employers increased per illegal worker

Key advice: Employers should extend right-to-work checks to include agency staff and independent contractors. Failure to comply with employment verification rules could lead to severe fines, criminal prosecution, and licence revocation.

EU Settlement Scheme: Settled Status Automation and Status Loss

In late January 2025, the Home Office began automatically upgrading eligible pre-settled status holders to full settled status. However, new rules will also allow the cancellation of pre-settled or settled status for those who have broken continuous residence, typically by spending more than two consecutive years outside the UK.

What to expect:

• More Home Office data-matching with border and benefits systems
• Increased risk of losing status without active notification
• Ongoing litigation and policy adjustments expected

EU citizens and their employers should monitor the status of sponsored staff and consider legal advice for those at risk of status loss.

UK eVisa Rollout and End of Physical Immigration Documents

The UK is replacing physical immigration documents—like Biometric Residence Permits (BRPs)—with digital-only eVisas by the end of 2025. Affected individuals must:

• Create a UKVI account
• Link their existing visa or leave to their eVisa profile
• Use the UKVI platform to share proof of immigration status

While BRPs issued in 2024 expire on 31 December 2024, remained valid for travel until at least 31 March 2025, provided the holder’s visa is still valid.

Employer tip: Ensure that HR systems can accept digital right-to-work checks via the Home Office online system.

UK ETA (Electronic Travel Authorisation) Expansion

The ETA system, which launched in 2023 for certain nationalities, is now being extended to:

• EU citizens from April 2025 (applications opened from March 2025)
• Other visa-exempt nationals arriving for tourism, short-term business, or transit

ETA application costs are usually available and are generally valid for two years.

Expected White Paper and Future Immigration Strategy

The government has announced plans to publish a new Immigration White Paper aimed at:

• Reducing overall migration
• Reforming skills-based routes
• Encouraging businesses to invest in training the domestic workforce

However, the White Paper's publication may be delayed due to ongoing reforms and economic considerations. In the meantime, the Migration Advisory Committee (MAC) is reviewing occupation shortage lists and will deliver recommendations in mid-2025.

Family Visa Financial Requirement Review

The MAC is also reviewing the minimum income threshold for family visas. A revised threshold is expected in Autumn 2025, alongside broader changes to the family immigration route as part of the government’s simplification plan.

Sponsor Management System Replacement

A new IT platform called Sponsor UK is gradually replacing the outdated Sponsor Management System (SMS). Full rollout is expected by 2026, but early adopters will begin transitioning in 2025.

Features of the new platform:

• More intuitive user interface
• Better case tracking and document submission
• Automated compliance flagging

Conclusion: How Employers and Migrants Can Prepare

With substantial reforms on the horizon, proactive planning is essential. Employers should:

• Review sponsor licence compliance and HR procedures
• Budget for increased visa and sponsorship costs
• Prepare for digital transition (eVisas, Sponsor UK platform)
• Monitor legal developments and seek timely immigration advice

2025 is shaping up to be a transformative year for UK immigration. Staying informed and prepared will be key to remaining compliant and competitive in the global talent market.

Content Disclaimer: While this information was last updated in May 2025, we strongly suggest confirming all travel details with the appropriate governmental agencies, embassies, and airlines.