The Immigration Skills Charge (Amendment) Regulations 2025
These Regulations amend the Immigration Skills Charge Regulations 2017 by updating the list of occupations exempt from the charge to align with version 12 of the Standard Occupational Classification (SOC) 2020 Index and simultaneously increase the ISC charges payable by sponsors by 32%.
The power to make these regulations is exercised by the Secretary of State with the consent of HM Treasury, and they come into force on December 16th, 2025, extending across the entire United Kingdom.
Arguments For
Amends the Immigration Skills Charge (ISC) regulations to align the list of occupations exempt from the charge with the latest Standard Occupational Classification (SOC) 2020 Index, Version 12, ensuring the exemptions reflect current required skills.
Increases the ISC payable amounts by 32%, which supports the stated aim of generating revenue for the skills fund, intended to finance domestic skills training for UK workers.
Provides clarity and updated structure for sponsors regarding the amount of charge due based on the length of employment sponsorship, simplifying compliance for sponsors choosing exempt roles.
Arguments Against
Increasing the ISC levy by 32% raises the cost burden for UK businesses that rely on sponsoring skilled workers from overseas, potentially discouraging hiring in sectors where domestic candidates are scarce.
Excluding certain professional roles (Social and Humanities Scientists, Researchers, Clergy, Sports Personnel) from the exemption list means sponsors hiring for these specific jobs must now pay the increased levy, creating unexpected cost implications.
Classifying the ISC as a tax places it outside the standard Better Regulation Framework, meaning a formal Regulatory Impact Assessment was not conducted, potentially obscuring the full economic impact on businesses.
The Secretary of State makes these Regulations with the consent of the Treasury in exercise of the powers conferred by sections 70A and 74(8) of the Immigration Act 2014.
In accordance with section 74(2)(ja) of that Act, a draft of this instrument was laid before Parliament and approved by a resolution of each House of Parliament.
The Secretary of State created these Regulations using powers granted under sections 70A and 74(8) of the Immigration Act 2014.
The Treasury formally consented to the financial aspects.
Additionally, a draft of this legal instrument was presented to and approved by both Houses of Parliament, as required by section 74(2)(ja) of the Act.
Citation, commencement and extent
(1) These Regulations may be cited as the Immigration Skills Charge (Amendment) Regulations 2025 and come into force on 16th December 2025.
(2) These Regulations extend to England and Wales, Scotland and Northern Ireland.
The official citation for these rules is the Immigration Skills Charge (Amendment) Regulations 2025.
They officially become law and take effect on December 16th, 2025.
These amendments apply fully across England, Wales, Scotland, and Northern Ireland.
Amendment to the Immigration Skills Charge Regulations 2017
(1) The Immigration Skills Charge Regulations 2017 are amended as follows.
(2) In regulation 4 (exemptions from the charge), for paragraph (a) substitute—
“(a) in respect of an occupation coming within any of the following codes in version 12 of the Standard Occupational Classification 2020 Index—
(i) 2111 (chemical scientists);
(ii) 2112 (biological scientists);
(iii) 2113 (biochemists and biomedical scientists);
(iv) 2114 (physical scientists);
(v) 2115 (social and humanities scientists);
(vi) 2119 (natural and social science professionals not elsewhere classified);
(vii) 2161 (research and development managers);
(viii) 2162 (other researchers, unspecified discipline);
(ix) 2311 (higher education teaching professionals);
(x) 2463 (clergy);
(xi) 3431 (sports players);
(xii) 3432 (sports coaches, instructors and officials);”.
(3) In paragraph 2 of the Schedule (amount of charge payable by a sponsor), for the table substitute—
| Column 1 | Column 2 | Column 3 | |---|---|---| | 12 months or less | £480 | £1320 | | More than 12 months, but no more than 18 months | £720 | £1980 | | More than 18 months, but no more than 24 months | £960 | £2640 | | More than 24 months, but no more than 30 months | £1200 | £3300 | | More than 30 months, but no more than 36 months | £1440 | £3960 | | More than 36 months, but no more than 42 months | £1680 | £4620 | | More than 42 months, but no more than 48 months | £1920 | £5280 | | More than 48 months, but no more than 54 months | £2160 | £5940 | | More than 54 months, but no more than 60 months | £2400 | £6600|
These rules modify the existing Immigration Skills Charge Regulations 2017.
Regulation 2(2) updates the list of occupations exempt from paying the charge by replacing the original paragraph (a) in regulation 4.
This replacement lists specific codes from version 12 of the Standard Occupational Classification (SOC) 2020 Index, covering various scientists, researchers, academics, clergy, and sports personnel.
Regulation 2(3) replaces the existing table within the Schedule that dictates the amount of the charge.
The new table shows higher fees based on the planned sponsorship duration, ranging from £480 up to £2400 for the lower category (Column 2) and £1320 up to £6600 for the higher category (Column 3) over a period up to 60 months.
Related
Correction Slip
A typographical error in the first signature block on page 24 of The Vaping Products (Production, Duty Stamps and Commencement) Regulations 2026 was officially corrected, changing 'Justin Holiday' to 'Justin Holliday'.
Read MoreCorrection Slip
A typographical error in the signature block on page 10 of The Social Security Contributions (Umbrella Companies) Regulations 2026 has been formally corrected to read 'Justin Holliday'.
Read MoreCorrection Slip
This instrument formally issues corrections for numerous textual and referencing errors found across various pages and regulations within The Local Government Pension Scheme (Miscellaneous Amendments) (Member Benefits) Regulations 2026.
Read MoreThe National Savings (Remediation Scheme) (No. 2) Regulations 2026
The Regulations established a remediation scheme for the Director of Savings to compensate estates for retained assets of deceased persons following administrative errors.
Read More