Understanding the Immigration Health SurchargeÂ
The Immigration Health Surcharge (IHS) is a mandatory fee for most visa applicants looking to stay in the UK for more than six months. The IHS is designed to contribute to the UK’s National Health Service (NHS).
It grants visa holders access to the NHS on generally the same terms as UK residents, covering a range of services including visits to the doctor, emergency care, and hospital treatments. The IHS has raised over £5 billion for healthcare spending since 2015.
Current Rates vs. Increased Rates from 6 February 2024
As of now (28 January 2024), the standard rate for the IHS is £624 per year for most visa categories, including work, study, and family visas. A reduced rate of £470 per year applies to students, those under the Youth Mobility Scheme, and certain types of dependent visas.
However, starting 6 February 2024, the UK government has announced that the IHS will increase from £624 to £1,035 per year for most visas (a 66% increase), and from £470 to £776 for students and Youth Mobility Scheme applicants. This will increase the cost of immigration applications made after this date.
Consider a professional planning to work in the UK on a Skilled Worker Visa. Currently, if they plan to stay for 5 years, their total IHS fee would be £3,120 (5 years x £624). With the anticipated increase, the total IHS fee would become approximately £5,175 for the same period i.e an increase of £2,055.
The IHS is paid upfront for the entire duration of your visa at the outset of your visa application, making it a significant part of your initial immigration expenses.
Who is Affected?
The upcoming increase in the IHS will have a broad impact, affecting a wide range of visa categories including:
- Work Visas: This includes Skilled Worker Visas, Health and Care Worker Visas, and other employment-based categories. Professionals planning to work in the UK should budget for the increased IHS as part of their immigration costs.
- Study Visas: Students coming to the UK for higher education will also see an increase in their IHS fees. This applies to both short-term and long-term courses.
- Family Visas: Those applying to join family members in the UK, including spouse/partner visas and visas for dependent children, will need to factor in the raised IHS fees.
- Other Long-term Visas: This includes categories like the Ancestry Visa or the Youth Mobility Scheme, where the stay exceeds six months.
Practical Employer Tips for Navigating the IHS Increase
With the Immigration Health Surcharge (IHS) set to increase, employers must strategize effectively by considering to:
- Expedite Applications: If employees are due to submit visa applications soon, consider applying before 6th February 2024. This can save significant costs, especially for those with dependents.
- Review Financial Support Policies: Many employers cover IHS costs for their staff. Review your policy – do you fund all visa-related costs, including application fees and additional expenses? Is this support extended to dependents? Consistency across roles and visa categories is key.
- Implement Clawback Agreements: With rising visa costs, clawback agreements can protect your investment. These agreements allow for the recoupment of costs if an employee leaves within a certain period.
- Ensure Accurate IHS Calculations: The IHS fee is calculated online based on specific application details. Ensure accurate data entry to avoid overpayment. For sponsored work visas, align role start dates and travel dates to optimise IHS payments.
Expert Immigration Lawyers in London
The impending increase in the IHS is a significant development in UK immigration law, affecting a wide range of visa categories. If you wish to benefit from the reduced IHS charges it is important to make an application before 6 February 2024.
Our expert immigration lawyers are dedicated to guiding you through these changes. We offer expert advice and tailored solutions to meet your specific immigration needs, ensuring a smooth and successful visa application process.
Our fees are always fixed. Please call us on 0207 459 4037 for a Free Consultation today to discuss your visa requirements and needs.
