The UK Prime Minister, Rishi Sunak, revealed plans to implement a substantial increase in fees and health surcharges paid by visa applicants, including those from India, to bolster public sector wage increments.
Recent announcements from UK Prime Minister Rishi Sunak indicate that visa applicants, including Indians, will face a significant increase in fees and health surcharges allocated to the state-funded National Health Service (NHS). While the government has yet to confirm the exact details, preliminary reports suggest a probable surge of approximately 15% to 20%.
Why Rishi Sunak is pushing for a price hike?
The purpose of this adjustment is to provide support for the country's public sector wage hike, which encompasses teachers, police personnel, junior doctors, and various other public sector employees. Sunak confirmed a comprehensive increase of 5 to 7% across all sectors. However, he emphasized that the government would not rely on heightened borrowing to cover these expenses, expressing concerns about inflation. Therefore, alternative sources of funding would be explored.
During a Downing Street press conference, Sunak stated, "If we intend to prioritize higher pay for public sector workers, we need to find the necessary funds from other avenues because I am not willing to raise people's taxes, and I believe it would be neither responsible nor appropriate to accumulate more debt as it would exacerbate inflation."
"So, we have taken two measures to secure these funds," he explained. "Firstly, we will be increasing the charges for migrants applying for visas and the Immigration Health Surcharge (IHS), which is a fee they pay to access the NHS."
He further stated, "All of these fees will experience a substantial increase, resulting in over GBP 1 billion in revenue. This will apply across the board to visa application fees and the IHS."
Sunak justified this decision by emphasizing that it is the "right" course of action, as these fees have not been raised in recent times. He pointed out that the hike is necessary given the increased costs since the previous adjustment.
How much do you need to pay now?
According to FREETH, the government has officially announced an increase of 15% in work and visa fees. Additionally, all other visa fees will see a minimum rise of 20%.
The immigration health surcharge, which was initially set at £200 per application in 2015, has already undergone significant increases. It doubled to £400 in 2018 and further escalated to £624 in 2020 for adults (discounted applicants paid £470). The government has now disclosed a substantial hike, raising the surcharge to £1,035 per person per year, with the discounted rate increasing to £776, as highlighted by FREETH.
The escalating fees imposed on migrants seeking employment in the UK place a substantial financial strain on business owners who depend on foreign labor. This discrepancy becomes particularly pronounced when compared to countries such as the United States or France, potentially leading to higher recruitment costs.
When will the new visa hike expected?
The UK Home Office is anticipated to provide comprehensive information in the following months regarding the specific visa categories that will experience increases and the effective dates of the new higher rates.
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