Government revokes sponsor licenses in immigration crackdown

  • Employment Law
sponsor licenses

Peninsula Team,

(Last updated )

Earlier this year, the Government published a white paper aimed at 'Restoring Control over the Immigration System'.

The paper detailed reforms across several areas, many of them having an impact on employment law, particularly when it comes to recruiting overseas workers.

Immigration system reforms

Two key measures in the paper came into effect from 22 July 2025. This was an increase to the skill level required for Skilled Worker Visas and the closure of the adult social care visa route.

From 22 July:

To support with the challenges these changes may pose, the Government have committed to improving domestic talent and recruitment. One measure includes the introduction of a Fair Pay Agreement to allow employers and workers in the care sector to negotiate improved terms and conditions.

Check our BrAInbox for instant answers to questions like:

How do the recent changes to immigration affect my employees on a Skilled Worker visa?

Enforcement

In the white paper, it was made clear that the Government would continue to build on the steps taken to tackle illegal working, specifically putting resource into key sectors where it is taking place, including the gig economy.

Continuing its crackdown on abuse of the immigration system, a record number of visa sponsor licences have been revoked for rule breaking.

Between July 2024−June 2025, 1948 licences that allow organisations to bring in migrant workers were revoked. This is more than double the number in the previous 12 months (937).  This surge in compliance activity follows just 261 licences being revoked in 2021−22 and 247 in 2022−23.

Licences have been revoked from companies for a wide range of rule breaking, which includes: 

According to data collated by the Government, the sectors with the highest levels of abuse include adult social care, hospitality, retail and construction.

This is a continuation of the Government’s efforts to clamp down on exploitation of the border system, which has also included expanding sanctions on rogue employers by financial penalty notices, business closure orders and potential prosecution, as part of its Plan for Change. Illegal working arrests have also increased by 51% compared to the previous year.

Check our BrAInbox for instant answers to questions like:

What are the employer responsibilities for sponsorship licences?

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