In the year ending June 2022, the number of organisations on the UK's register of work sponsors reached 45,234, reflecting a significant increase of 27% from the previous year. However, what's even more noteworthy is the staggering 138% increase in visa applications for working using sponsorship certificates in the same period, compared to the previous year. These increases can largely be attributed to the end of the free movement of workers from Europe caused by Brexit. Consequently, as of January 2020, all non-UK and Irish citizens now need to obtain an appropriate visa before they can work in the UK.
In the year ending June 2022, over 110,000 people applied for a Skilled Worker Visa using a sponsorship certificate which made it by far the most popular work visa in the UK.
The Skilled Worker Visa was introduced in 2020 following the implementation of the UK’s new points-based immigration system. Under this visa, individuals are able to work in the UK for up to 5 years, after which individuals may be eligible to apply to settle permanently in the UK. However, to be eligible for a Skilled Worker Visa, applicants are required to meet a number of rather stringent requirements related to their prospective job, employer and knowledge of English. One key requirement is sponsorship by an approved UK organisation with a sponsor licence, but despite the benefits, only a few UK organisations actually possess a sponsor licence. So, what is the reason behind this?
Despite the growing number of people applying for a Skilled Worker Visa and the increase in organisations obtaining a sponsor licence, it's worth noting that only a small fraction (3%) of organisations currently hold a sponsor licence. The reasons for this can vary depending on the organisation, but in most cases, it boils down to perceived costs and complexities associated with obtaining and maintaining the licence. In the next couple of sections, we will break down the perceptions surrounding the costs and complexities associated with obtaining and maintaining a sponsor licence.