Introduction
Since Brexit officially took effect, the UK immigration system has undergone a complete transformation. One of the biggest impacts has been on the Sponsor Licence regime a critical requirement for UK businesses looking to hire talent from abroad.
Whether you're an SME, startup, or large enterprise, understanding how the Sponsor Licence process has changed after Brexit is essential for legal compliance and workforce planning.
This post breaks it all down in plain English and gives you the latest insights as of 2025.
What Is a Sponsor Licence?
A Sponsor Licence allows UK employers to legally hire non-UK workers, including EU nationals, under routes such as the Skilled Worker visa.
Once granted by the UK Home Office, the licence permits a business to issue Certificates of Sponsorship (CoS) to eligible overseas employees.
Brexit and UK Immigration: The Key Changes
Before Brexit, EU nationals could work in the UK without a visa. Since 1 January 2021, freedom of movement has ended, and EU nationals now need sponsorship, just like non-EU workers.
This shift means:
All overseas workers (EU and non-EU) now fall under the points-based immigration system
Employers must have a valid Sponsor Licence to hire any non-UK worker (except those with settled/pre-settled status)
How Brexit Has Impacted Sponsor Licence Requirements
Here’s what’s changed since Brexit:
Before Brexit |
After Brexit (2025) |
---|---|
EU nationals didn’t need sponsorship |
EU nationals now require Skilled Worker visas |
Sponsor Licence mainly for non-EU workers |
Sponsor Licence needed for all overseas hires |
Lower demand for sponsor licences |
Sharp rise in Sponsor Licence applications |
Shortage occupation list more limited |
Broader list to address UK skill gaps |
EU Nationals & Sponsorship After Brexit
If you're hiring EU workers who arrived after 1 January 2021 and don't have settled/pre-settled status under the EU Settlement Scheme, you must sponsor them under a Skilled Worker or other qualifying visa route.
Even bilingual roles or niche EU-specific roles now require visa sponsorship.
Updated Sponsor Licence Rules in 2025
Here’s what businesses need to know:
1. New Salary Thresholds (2025 Update)
General threshold: £26,200 or £10.75/hour
New entrant threshold: £20,960
Shortage Occupation roles: 20% lower than standard
2. Increased Focus on Compliance
The Home Office is increasing random audits to ensure sponsor compliance. You must:
Keep records of sponsored workers’ attendance, address, visa details
Report job changes via the Sponsor Management System (SMS)
Avoid any false CoS assignments
3. More Routes Under One Licence
A 2025 enhancement allows a single licence to sponsor workers under:
Skilled Worker route
Global Business Mobility
Scale-up Worker route
Graduate Trainee route
4. Priority Processing Returns (Limited Quotas)
The Home Office has reintroduced Priority Processing:
Decision in 10 working days
Additional fee: £500
Subject to daily quota (apply early!)
Key Long-Tail Keywords to Help You Rank
These are naturally embedded throughout the blog and align with high-search-intent user queries:
“sponsor licence after Brexit changes 2025”
“EU workers sponsorship UK after Brexit”
“how to get UK skilled worker sponsor licence 2025”
“UK visa sponsorship process for small businesses”
Home Office Resources
Yes, unless the person has settled or pre-settled status. All EU nationals now fall under the points-based system.
The process is more regulated but manageable with the right preparation. Having a Sponsor Licence is now essential.
Absolutely. As long as you meet the Home Office requirements and offer genuine employment, you can apply.
There are costs involved (licence fee, visa fees, Immigration Skills Charge), but they’re often outweighed by the benefit of accessing needed talent.
We are Regulated at the highest level (level-3) by the OISC and have over 10 years experience
We are clear, honest & professional and that is our transparent strategy for maintaining a very high visa success rate
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We are one of the best immigration lawyers in London, success stories in our customer reviews speak for themselves
The UK Home Office has reported significant progress in immigration enforcement activities between 5 July and 7 December 2024
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