These Regulations impose obligations on persons who sponsor skilled migrants from certain overseas territories to pay a charge in respect of each skilled migrant whom they sponsor (that charge being the immigration skills charge or just the charge). These Regulations set out how the charge will operate, including by setting the amount of the charge, and providing exemptions from the obligation to pay it. The Regulations also specify when the charge must be paid and the consequences of non-payment. Through the introduction of an immigration skills charge, the Government wants to incentivise employers to invest in training and upskilling the resident workforce, thus reducing reliance on migrant workers, and is also seeking to increase investment in skills to increase UK productivity.
The immigration skills charge will be collected by the Home Office as part of the visa sponsorship process. The Home Office will transfer the income to the Consolidated Fund, less an amount to cover collection and administrative costs. The population percentages underlying the Barnett formula will be used by HM Treasury to determine the split of funding between the Department for Education and each of the Devolved Administrations. The income raised by the charge will be put towards addressing skills gaps in the UK workforce (less an amount to cover Home Office collection and administration costs).
Lastly, the immigration skills charge will be payable by sponsors licensed by the Secretary of State in the UK to recruit skilled workers from outside the European Economic Area (EEA). The charge will be payable in respect of each skilled worker whom the sponsor recruits.
