UK Government Unveils Significant Immigration Fee Hikes Aiming for £269 Million Annual Revenue

Home Office Flags Major Immigration Fee Increases

The UK Home Office recently flagged a package of significant fee increases across various immigration and nationality services, with the proposals published on January 28, 2026. These hikes are projected to raise an additional £269 million annually, aiming to reduce the immigration system's reliance on taxpayer funding.

Details of the Proposed Fee Adjustments

The proposed changes affect several key areas, including the Electronic Travel Authorisation (ETA), Certificates of Sponsorship (CoS), and British citizenship applications.

• The Electronic Travel Authorisation (ETA) charge is set to rise from its current £10 to £16. This marks the second increase for the ETA within a year, following its initial launch. Some reports also indicate a further proposed increase to £20. The increase to £16 was enforced in April 2025.
• Fees for assigning a Certificate of Sponsorship (CoS) for Skilled Worker and other work visa routes are slated to more than double, increasing from £239 to £525. For temporary workers, the fee will rise from £25 to £55.
• The cost of applying for British citizenship (naturalisation) will increase from £1,500 to £1,605.
• Naturalisation as a British Overseas Territories citizen will see an increase from £1,000 to £1,070.
• Other nationality-related fees, such as the renunciation of British citizenship, will also see increases, rising from £450 to £482.

Government Rationale and Implementation Timeline

The Home Office justifies these increases by stating that higher user-pay charges are preferable to further cuts elsewhere and will help fund the technology needed to digitise border and caseworking systems. The draft Immigration and Nationality (Fees) (Amendment) Order 2025 was initially laid before Parliament on January 16, 2025, with the changes subject to parliamentary approval. While no definitive implementation date for the entire package has been announced, officials estimate the changes could generate the additional revenue annually. Some fee adjustments, such as the ETA increase to £16, were already enforced in April 2025.

Industry Concerns and Broader Context

These proposed fee hikes have drawn criticism from business lobby groups, who warn of a 'stealth tax on skills' and express concern that the significant increase in CoS fees will disproportionately affect Small and Medium-sized Enterprises (SMEs). Critics note that UK immigration fees are already among the highest globally. Employers are being advised to audit their sponsorship pipelines and, where possible, assign CoS ahead of the increases. This latest round of proposed increases follows previous adjustments to immigration fees in October 2023 and the Immigration Health Surcharge in February 2024.