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, 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, causing 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?
The government on 28 November 2024, made clear its commitment to bring down historically high levels of net migration as new statistics released show that the net migration grew almost 5 times higher in the space of 4 years to a record level of almost one million and 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 and boost economic growth to link 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
The Home Office has been issuing numerous further information requests and rejecting CoS applications on grounds of “genuineness,” often without providing specific reasons. In many cases, UK employers are forced to issue a pre-action protocol letter to challenge such decisions, which adds another 14 days for a response. If that fails, employers then have to submit a new CoS request, further compounding 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, disrupting business operations, and derailing the plans of sponsor licence holders who depend on a predictable and timely process to meet their workforce requirements.
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 company’s ability to plan and hire new employees, which can slow both strategic initiatives and project timelines.
Moreover, without having adequate CoS allocations 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 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, 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 that are trying to provide a smooth and welcoming experience for new hires are facing a backlash due to the delays and uncertainties in the CoS process, which can leave a negative first impression.
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 processing, as opposed to 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 the result of the Home Office only allocating 60 slots per day for this service on a first come first serve basis and we are told that the demand for priority slots is exceptionally high. Of the few seconds, these become called nearly in an instant and it leaves it truly tough for employers to take benefit of this option. Employers claim they are spending weeks trying to gain access to this service.
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 in recent years due to the record-breaking number of arrivals in the UK.
The policy shift signifies a focus on scrutinising applications to ensure only those employers and workers with bona fide intentions are issued with Certificates of Sponsorship
The Home Office is particularly determined to limit the number of migrants entering the UK and is prioritising employment opportunities for local talent. As a result, there has been a noticeable increase in the rejection of COS applications, as well as delays in processing requests. 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’.
Advice for sponsor licence holders
Recently, there has been a significant change in the Home office’s strategy and approach to manage and allocate the Certificates of Sponsorship (CoS).
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, considering 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 the CoS, as this stage no longer appears to be a ‘routine’ check. It is also important to prepare additional supporting documents such as interview notes or advertisement copies, as these are often required during a further information request and such requests often come with strict deadlines and could further delay the process if not handled properly.
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
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. The government aims to make the SMS portal more user- friendly and insightful and easier for sponsor licence holders to meet their immigration compliance duties and responsibilities.
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 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.
