Employers should consider the impact of the IHS fee increases from the budgeting, talent recruitment, and employee retention perspectives. Immediate areas for focus may include prioritising the filing of any in-flight renewal and new-hire applications (where eligible) before 6 February to benefit from the current, lower IHS fees; and reviewing any downstream processes to help ensure any communications and claw-back letters issued to migrant workers are updated to reflect the increase in IHS fees.
Employers will need to think holistically and strategically around their talent recruitment and retention policies so that they may be able to secure the immediate talent they need, whilst future-proofing their workforce against increasing visa costs irrespective of whether they are borne by the employer or migrant workers themselves.
From a long-term strategic planning perspective, employers should be cognizant of where potential talent is impacted by financial constraints, the U.K. may no longer be a choice destination to seek and take up employment. This could impact access to talent, whilst requiring an assessment of skills needed across businesses and pragmatic solutions required to address these.
Further, employers should be in regular contact with their immigration counsel to review the impact of the salary threshold increases that are expected to take effect in Spring 2024.2
