The capability of licenced employers in the UK to source, engage, and retain the finest talent in the field remains central within the competitive landscape of businesses. This is especially for those who are heavily reliant on skilled workers sourced from outside the UK.
For such employers, the first step in this challenging journey is to obtain a Certificate of Sponsorship (CoS) allocation. However, recent trends have exposed increasing challenges towards acquiring the CoS allocation. This has caused substantial disruptions in both business operations as well as employee well-being.
One of the challenges is the heightened scrutiny of CoS applications. Every application now undergoes a more thorough examination, leading to delays and, in many cases, rejections.
Is this new government strategy to reduce immigration and discourage organisations from hiring overseas talent? Was the increase in migrant salaries and changes implemented in April 2024 not sufficient?
UK Government’s New Commitment to Employ a Homegrown Workforce
The government, on 28 November 2024, made clear its commitment to bring down historically high levels of net migration. This is because the new statistics released show that the ONS provisional figures fell by nearly 50 percent to 431,000 in the year to December 2024, down from 860,000 a year earlier. Along with that, the net migration grew almost 5 times higher in the space of 4 years to a record level of almost one million. This is still 4 times higher than it was before the pandemic.
The Home Secretary has set out a new approach to end the over-reliance on international recruitment. This new approach will boost economic growth by linking the UK’s immigration, labour market, and skills systems to train up their homegrown workforce. At the same time, she also confirmed that changes made to key visa routes earlier this year would remain in place to drive down levels further.
The new crackdown will see unscrupulous employers, who repeatedly flout visa rules or commit serious employment breaches, barred from hiring from overseas as they have their visa sponsorship licenses refused or revoked.
The Challenges of Obtaining a CoS Allocation: A Strain on Operations and Workforce Planning
1. Frequent Information Requests and Rejections
The Home Office has been issuing numerous further information requests and rejecting CoS applications on grounds of “genuineness,”. This is happening often without providing specific reasons. In many cases, UK employers are forced to issue a pre-action protocol letter to challenge such decisions. This action adds another 14 days for a response. If that fails, employers then have to submit a new CoS request, further compounding delays.
2. Extended Processing Delays
Under immigration rules, a DCoS request which should typically take 1-2 working days, is now taking over 10 days. And in cases where further information is requested, the wait can exceed a month or more. These prolonged delays are causing considerable mental distress for both employers and applicants. It is disrupting business operations and derailing the plans of sponsor licence holders who depend on a predictable and timely process to meet their workforce requirements.
3. Operational Impact on Hiring and Workforce Planning
Businesses that need to hire new employees from within the UK or extend the visas of current workers are finding the CoS allocation process a major bottleneck. Requests for an in-year increase in CoS allocation often take up to 16 weeks to process. This protracted waiting period can materially disrupt a company’s ability to plan and hire new employees. Also, it can slow both strategic initiatives and project timelines. Moreover, without having adequate CoS allocations, it could force companies to put the key hiring decisions on hold.
In conclusion, the emphasis on genuineness in the sponsor licence application and skilled worker sponsorship processes is more pronounced than ever. To prevent scrutiny and the possible suspension of their sponsor license, businesses must be more careful with their CoS requests. They must make sure their applications and requests for CoS show clear, genuine needs and compliance with all regulatory criteria.
Employee Retention Challenges
These challenges not only create difficulties in securing a CoS allocation but also cause extra hassle for businesses. As a result, this is creating a stressful environment for employees.
For employees who need to extend their visas, the uncertainty of the allocation process can be a nerve-racking experience. They fear for their future in the UK and may involuntarily stop performing or lose their morale.
This stressful experience is particularly detrimental when the company is trying to onboard new talent. Companies are trying to provide a smooth and welcoming experience for new hires. But now they are facing a backlash due to the delays and uncertainties in the CoS process. This can leave a negative first impression and eventually impact the company’s growth.
The Home Office Priority Service: A Struggle for Expediency
In the past, the Home Office Priority Service provided a glimmer of hope for employers wishing to fast-track their Undefined CoS allocation requests. All for the small sum of £200 which guaranteed faster processing. They could use this service to avoid the usual lengthy 16 weeks, in just five working days. Now, access to the priority service is becoming harder to obtain and, unfortunately, more expensive.
The inefficiency also appears to be because the Home Office only allocates 60 slots per day on a first-come, first-served basis. By listening to our clients, we know the demand for priority slots is exceptionally high. Of the few seconds, these become called nearly in an instant. This becomes truly tough for employers to take benefit of this option. Employers claim they are spending weeks trying to gain access to this service. So now, the Home Office is offering 100 slots per day, released from 7 am on a first-come, first-served basis.
Navigating and fulfilling these demands can be frustrating, adding yet another layer of complexity to an already difficult process.
What Could Be the Reason for CoS delays?
The UK government’s attempts to reduce migration are also responsible for the difficulties relating to the delays in CoS requests. As everyone is aware, reducing net migration has been a primary objective of the British government. This is obviously due to the record-breaking number of arrivals in the UK in recent years.
The policy shift signifies a focus on scrutinising applications. This is Home Office ensuring that it only issues Certificates of Sponsorship to only those employers with bona fide intentions.
The Home Office is particularly determined to limit the number of migrants entering the UK. It is especially prioritising employment opportunities for local talent. As a result, the Home Office is increasingly rejecting COS applications, as well as delaying the processing. According to statements made by the Home Secretary ‘In the space of 4 years, net migration rose by almost 5 times to a record high – that shows the serious damage that was done to the immigration system, the lack of proper controls in place, and the over-reliance on a big increase in overseas recruitment’.
Why is the UK Visa Getting Delayed Now?
The Home Office now applies stricter checks on visa applications. As a result, officials review more documents per case. Meanwhile, high net migration and resource shortages have created a backlog. Additionally, ongoing IT system upgrades slow processing. Therefore, applicants often face extended waits until staff and systems catch up.
Crucial Advice for Sponsor Licence Holders
Recently, there has been a significant change in the Home office’s strategy and approach to manage and allocate CoSs.
The Home Office has adopted stricter measures, focusing heavily on rejecting non-genuine and doubtful allocation requests.
We strongly advise sponsors to reevaluate their strategies about how a request would be handled. You must consider the costs and potential delays involved. When making the request, for either a defined or undefined CoS, the sponsor should include comprehensive and detailed information about the role including the job description, job title, and the recruitment process. At this stage, the CoS request no longer appears to be a ‘routine’ check. It is also important to prepare additional supporting documents such as interview notes or advertisement copies. These documents are often required during a further information request. And these kinds of requests come with strict deadlines and could further delay the process if not handled properly.
Lean on Expert Guidance
While this process can be complex and stressful, our business immigration specialists are experienced in managing such requests on a daily basis, and we are here to assist you with any queries or concerns you may have regarding CoS challenges. Our expert team understands the Home Office’s expectations and will advise you in implementing the necessary sponsor management systems and processes for your business to smooth out the complete sponsorship process, please speak to a member of our immigration law team for a seamless sponsorship and onboarding procedure, and hire the new talent without any unnecessary stress and hurdles.
The 2025 Outlook – New Sponsor Management System
Although it is unlikely that any major updates in the immigration policy will happen in 2025; however, there are several key operational changes due to occur in the next 12 months that employers need to be aware of that could significantly impact their overseas employees wanting to travel to the UK.
One of the notable changes is that the UK Government is in the process of updating the Sponsorship Management System (SMS), the online portal through which companies manage their sponsor licences and issue Certificates of Sponsorship to overseas workers they wish to the current SMS has been in operation since the UK Government first introduced the Points Based System.
However, from November 2024, the Home Office will replace it with the more intuitive “Sponsor UK” platform. The new platform remains in its limited beta phase rather than fully replacing SMS across all routes. Sponsors on the Government Authorised Exchange (GAE) route can trial Sponsor UK under the PB1 pilot, but most users still log into the existing SMS portal. The Home Office plans a gradual rollout over the next two to four years, so you should continue using SMS for Skilled Worker and other routes until Sponsor UK’s full launch.
More Sponsor Priority Slots
Additionally, the Home Office has increased the Sponsor Priority slots by almost double to 100 per day. The service now operates from 7 am to 5 pm, Monday to Friday, this is fantastic news for sponsors, as it provides greater access to the priority service and supports employers in hiring overseas talent.
The Final Word
The increase in priority slots brings hope for the potential sponsors who are trying to hire overseas workers urgently. However, with the UK Government under increasing pressure to reduce net migration—which is currently at a record high level, we are also seeing increasing scrutiny of applications. Additionally, there is an upturn in Home Office immigration compliance activity, and we expect this trend to continue in 2025. If you are dealing with Sponsor Licence issues, we highly recommend that you contact A Y & J Solicitors. Our firm has more than a decade of experience in dealing with UK Sponsor Licences.
At A Y & J Solicitors, we have handled over 100s of successful Sponsor Licence applications. With a 95% success rate, we have achieved an overall track record of 5,000+ successful immigration and visa cases through our result-driven approach to every application. We take on each client with the genuine intention to provide our undivided care and attention to their case. We guide you through every step of your Sponsor Licence process, so you can trust the experts to manage your application and work toward your success.
Why A Y & J Solicitors?
With over thousands of successful immigration cases to our name, A Y & J Solicitors has built its reputation on trust, care, and real results. Over the 15+ years of working in UK immigration law, we’ve helped individuals and businesses confidently navigate sponsor licence applications and all kinds of compliance issues. We’re proud to be recognised by The Legal 500, but it’s our clients’ peace of mind that matters most. When you work with us, you get clear advice, honest support, and a team that’s truly on your side.
