UK to Increase Visa Fees and Health Surcharge to Finance Public Sector

In a bid to address pay increases in the public sector, the United Kingdom announced plans to significantly raise visa fees and the immigration health surcharge (IHS).

Prime Minister Rishi Sunak made the announcement during a press conference. He emphasised the need for alternative funding sources to avoid tax hikes and increased borrowing, which could exacerbate inflation.

The proposed increases in fees and surcharges aim to generate over a billion pounds, providing vital financial support for public sector workers.

According to Sunak, these charges have remained unchanged for a considerable period, despite rising costs in various sectors. The Prime Minister stressed the importance of migrants contributing their fair share to the country’s resources when accessing services such as the National Health Service (NHS).

Presently, the IHS stands at £470 per year for students and individuals under the Youth Mobility Scheme, while all other visa and immigration applicants pay £624 per year. This amount also applies to dependents.

However, the Prime Minister’s announcement signals an imminent increase in these charges.

The recent strike actions by public sector workers, including teachers and health professionals, have further highlighted the urgency of addressing their demands for pay increases.

Following recommendations from an independent pay review body, the government has agreed to raise salaries between five and seven percent. This pay rise will be financed through higher visa fees and health surcharges.

NHS Junior Doctors Strike

Despite the government’s efforts to address public sector pay concerns, junior doctors have embarked on an extended five-day strike. It marks the most prolonged industrial action of its kind.

They are demanding a pay increase of approximately 35 percent, the doctors said they will return to their duties afterwards.

The government has firmly stood by its decision. Stating that the agreed-upon pay raise, ranging between five and six percent, is final and won’t change.

This divergence in expectations has led to criticism from the British Medical Association. They accuse the government of neglecting the doctors’ needs and failing to present a credible pay offer to end the ongoing strikes.

The adjustments to visa fees and the immigration health surcharge will impact not only UK-based workers but also migrant health professionals, including those from Nigeria.

Currently, there are around 11,000 Nigerian-trained doctors working in the UK, placing Nigeria as the third-largest source of foreign doctors, preceded by India and Pakistan.

These changes in fees and surcharges may affect the Nigerian migrant community, further emphasizing the need for a comprehensive evaluation of the policy’s ramifications.

The UK government plans to implement an average pay increase of approximately 8.8 percent for junior doctors. With actual percentages ranging from 8.1 to 10.3 percent, depending on their training level.

Despite this, the increase falls significantly short of the 35 percent demanded by junior doctors.

PM Sunak Faces Criticism

The Prime Minister’s announcement has drawn criticism from various quarters. Doctors in Unite, an organization representing junior doctors, general practitioners, and hospital consultants, expressed their dismay.

They stated that the increased surcharge amounts to migrants being double-taxed for using the NHS. The organization argued that migrants already contribute to NHS funding through general taxation, making the additional penalty unjust and divisive.

The immigration health surcharge initially introduced to prevent “medical tourism,” is now applicable to most migrants under stricter post-Brexit entry regulations.

It is paid per person in addition to visa fees for stays exceeding six months.

Currently, individuals aged 18 and above pay £817 per year, while students and those under 18 pay £615 per year.

Under the proposed changes, the IHS for adults would increase to £1,355, with a reduced rate of £1,016.

Work and visit visa fees will also rise by 15 percent, while student visas and leave-to-remain visas, among others, will see increases of at least 20 percent.

With net migration reaching a record 606,000 in 2022, the UK government faces pressure to reduce dependence on foreign labour.

Prime Minister Sunak has deemed legal immigration levels too high. The Government is simultaneously grappling with an influx of asylum claims from migrants crossing the English Channel in small boats.

The adjustments to visa fees and the immigration health surcharge reflect the government’s commitment to strike a balance between effectively managing migration and ensuring adequate funding for the public sector.

Critics argue that the IHS increases, funded by individuals or their employers, could worsen understaffing in many sectors. It would also potentially drive high-skilled workers and students to seek opportunities elsewhere.

Organizations like Praxis, a migrant and refugee charity, have accused the government of treating non-UK-born individuals as “cash cows,” particularly when they already struggle with high visa renewal fees.

The Wellcome Sanger Institute, a genomics research centre, reported spending over £393,000 on immigration fees for its employees in 2022. The institute’s head of policy, Sarion Bowers, stated that these proposed increases would create additional barriers for global talent and have a detrimental effect on the UK and global science community.