In July 2023 the UK government announced an increase in both visa application fees and the Immigration Health Surcharge (IHS).
The Immigration and Nationality (Fees) (Amendment)(No.2) Regulations 2023 were laid before parliament on 15 September and set out the increased application fees which came into effect on 4 October 2023.
Whilst student visas remain (comparatively) one of the lower cost applications, the Home Office fee increased a substantial 35% on 4 October, jumping from £363 to £490 per applicant.
An increase in the IHS was anticipated before the end of the year. The draft legislation (Immigration (Health Charge) (Amendment) Order 2023) has now been laid before parliament and, assuming it secures approval, will come into force on 16 January 2024 at the earliest. For students, the current IHS is set at £470 per year. This is due to increase from January, or shortly thereafter, to £776 per year, representing a 65% increase. This is a significant uplift in costs, particularly when you consider it is payable upfront for the full visa period.
Students will also require to be mindful of their long-term plans post-study. Many will opt to move into the two- or three-year graduate visa. The visa application fee for this is currently £882. The current IHS of £624 for this visa route will be increasing to £1,035 per year.
For those that to move into another category, such as the skilled worker route, the increased IHS of £1,035 will also apply i.e. £2,070 for a two-year visa or £5,175 for a five-year visa, payable upfront. There is currently no option to pay the IHS in instalments.
The application fees currently range from £551- £1,500. Whilst application fees and the IHS will sometimes be covered by employers, often with a clawback clause in the contract of employment where employment ends before the visa term, this is not a given.
Whilst plans can change, it is prudent for students coming to the UK to forward plan to avoid being caught short when it comes to moving out of the student visa category and into graduate or work routes.
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