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Loading …Social care leaders have sounded the alarm over a planned 120% hike in the fees they must pay to sponsor overseas staff to work for them on skilled worker visas.
The government has tabled legislation to raise the certificate of sponsorship fee from £239 to £525, though it has not confirmed the implementation date.
Employers must obtain the certificates to enable people from abroad – including those already in the UK – to apply for a health and care visa, enabling them to work in the sector.
Providers face costs hike from tax and wage increases
The development comes in the wake of the planned rise to employers’ national insurance contributions due to come into force in April 2025.
This is due to cost providers £940m in 2025-26, according to think-tank the Nuffield Trust, with organisations also facing a £1.85bn bill next year from the 6.7% rise in the national living wage (NLW).
While councils fund 70% of care in the independent sector, local government leaders have warned that they have not been sufficiently resourced to cover their share of the bill.
‘Yet another blow to care providers’
“These proposed fee increases represent yet another blow to social care providers, compounding what is already a devastating situation for the sector,” said Martin Green, chief executive of representative body Care England.
He also raised concerns about the impact of the measure on international recruitment, which was significantly responsible for the fall in sector vacancy numbers, from 164,000 to 131,000, from March 2022 to March 24.
Since last March, the number of international recruits has plummeted on the back of a ban on overseas staff bringing dependants with them when taking up roles in the social care sector.
According to Skills for Care, independent providers recruited 18,000 international staff from April to September 2024, compared with 105,000 in the year to March 2024, a fall of roughly two-thirds in the quarterly average.
Government urged to reverse policy
Green added: “Targeting international recruitment with these fee increases is an attack at the very heart of the sector’s ability to function. Care providers are already fighting to sustain services, and these additional costs will push many to breaking point. The government must reconsider its position immediately.”
The Association of Directors of Adult Social Services also raised concern about the fee increase, with president Mel Williams saying: “Care workers recruited from overseas have played an essential role in supporting thousands of people and their families, filling many vacant posts across the sector over the last few years.
“Given the financial challenges they face, we know some care companies will be questioning the financial viability of continuing to provide care and support.”
