Between July 2024 and June 2025, the Home Office revoked 1,948 sponsor licences. That’s more than double the 937 licences revoked in the previous year. This surge marks a record high and underscores the government’s intensified enforcement stance on employers who violate immigration rules.
Most revocations relate to serious abuses of the sponsorship system. These include using visa schemes to underpay migrant workers, sponsoring roles that don’t exist or exploiting employees who fear complaining. The sectors hit hardest include adult social care, retail, hospitality and construction.
What is driving the crackdown?
One key change is the use of enhanced data and intelligence sharing. Authorities now cross-check HMRC data, Companies House records and other sources to spot suspicious employer behaviour more proactively. The government appears to be shifting from primarily doing compliance visits to using digital insight and targeting high-risk sponsors.
Revocations are now one of the several tools in the enforcement toolkit. Alongside this, the government is also expanding civil penalties, business closure orders and even the potential for prosecution. As Minister for Migration and Citizenship Mike Tapp puts it:
“Those who abuse our immigration system must face the strongest possible consequences. We will not hesitate to ban companies from sponsoring workers from overseas where this is being done to undercut British workers and exploit vulnerable staff.”
What this means for employers
If your organisation holds a sponsor licence, this trend is a red flag. The risk profile for non-compliance has risen sharply. Here’s what you must be especially careful about:
- Ensuring that sponsored roles truly exist, meet the required skill level and are genuine.
- Paying properly, meeting or exceeding salary thresholds at all times.
- Maintaining rigorous record keeping and reporting changes. If a worker leaves or changes role, these must be reported promptly.
- Preparing for audits or investigations at any time.
Employers in certain sectors, especially those more exposed to migrant labour, should assume scrutiny is higher now than ever.
Learn more: Sponsor Licence Application Guidance for UK Employers
Navigating licence revocation and recovery
If your licence is suspended or revoked, time is of the essence. You’ll need to:
- Review the revocation notice carefully to understand the grounds being cited.
- Communicate with any affected sponsored employees so they understand their status.
- Seek legal counsel immediately. There may be scope to challenge the revocation through judicial review or negotiate remediation.
- If outlawed from applying again for a period, begin putting compliance upgrades in place. For example, revamped HR systems, audits, training, documented process changes.
A revocation does not always mean an end. But in many cases, reapplying will require demonstrating far stronger safeguards than before.
Key questions under the new settlement regime
The timing of this enforcement surge comes amid proposals to overhaul settlement rules. With the government aiming to lengthen qualifying periods and tighten tests for ILR, dependence on employer sponsorship may become even more fraught.
If dependants face stricter tests in future, having a compliant and strong sponsor will be more critical than ever.
How specialist legal advisers can help
When the risk of revocation is high, specialist immigration solicitors can be a lifeline. They can:
- Audit your current practices and highlight weak spots
- Assist in preparing for compliance inspections or queries
- Advise on responses to suspension or revocation notices
- Guide remedial actions to rebuild a credible application for re-licensing
In an environment of increasing enforcement, proactive legal support is not an option. It’s essential.
Please note that this article is solely for informational purposes. It’s not a substitute for legal advice. We encourage readers to contact Osbourne Pinner for case-specific guidance.
If you’re concerned about your sponsor licence or want to prepare your business against enforcement risk, contact our immigration team. We can review your compliance and provide bespoke guidance, starting with a free 30-minute consultation.
Speak to us remotely or come to one of our offices in Harrow, Canary Wharf, Piccadilly Circus and Manchester. To book your complimentary session, call 0203 983 5080, email [email protected] or fill out the form below.
