UK government revokes record number of sponsor licences
Updated 17 September 2025
More than twice as many sponsor licences were revoked in the Labour government’s first year in power as in the year preceding. In a sign it has ramped up enforcement, the government has revealed that a record-breaking 1,948 licences allowing employers to hire workers from abroad were taken away between July 2024 and June 2025. The Labour government doubled the previous year’s total of 937, marking a significant escalation in compliance activity.
What is behind the surge in revocations?
The government says that employers lost their licences for a wide range of rule breaking, which includes:
- underpayment of workers
- facilitating the entry of individuals to circumvent the immigration rules
- failing to provide promised work
It said that improved data and intelligence sharing across government and law enforcement has resulted in more employers being held to account for breaking the immigration rules.
This crackdown follows a steady increase in enforcement over recent years, with just 261 and 247 licences revoked in 2021–22 and 2022–23 respectively. Based on current trends, the number of revocations is expected to rise again in the coming year. Adult social care, hospitality, retail and construction are among the sectors with the highest levels of enforcement actions.
Expanded enforcement powers
The UK government insists its Plan for Change includes expanding sanctions for non-compliant employers, including financial penalty notices, business closure orders and potential prosecution.
Having a licence to sponsor revoked will have a major impact on an employer, including losing their ability to continue to employ current sponsored workers as well as future ones. This in turn may lead to employment law issues.
The government has also increased illegal working arrests by 51%.
The UK government has recently introduced amendments to the Border Security, Asylum and Immigration Bill, including a significant change to extend right to work checks to cover alternative working arrangements, encompassing the gig economy and zero-hours workers, both of which previously fell outside the scope of the usual right to work regulations we advise clients on. The amendment is part of a broader strategy to further combat illegal working and ensure fair competition across all sectors.
In the adult social care sector, where many sponsor licences have been revoked, the Department of Health and Social Care has launched a £16 million support programme to assist affected international care workers. This includes help with visa status, finding new sponsors, and accessing financial and mental health support. Social care employers can no longer sponsor care workers and senior care workers from abroad, only from the pool of those already in the UK.
What should HR teams do to ensure they are compliant with immigration guidance?
If your business sponsors foreign workers, now is the time to:
- review your right to work and sponsorship policies, key sponsoring personnel, terms of employment and correspondence with sponsored staff to ensure they are compliant with the latest guidance
- ensure you stay informed about changing immigration rules and enforcement trends
- for legal advice or support with sponsor licence compliance, contact our immigration team today.
The Home Office may revoke, suspend or downgrade your sponsor licence if you fail to comply with your sponsor duties. Broadly, these involve reporting, record keeping, compliance with the law, behaviour conducive to the public good. Sanctions may result due to a failed inspection or if your application did not meet requirements.
We advise on all aspects of work immigration compliance and if you are interested in discussing how you may benefit from a compliance audit or update on the latest immigration developments please contact our friendly immigration experts. We are highly ranked in legal guides for our boutique work with employers and employees in business and personal immigration. We pride ourselves on providing clear training and materials so our clients find it easy to follow the rules.
Can we help if your sponsor licence has been refused, suspended, downgraded or revoked?
If you are facing revocation or downgrading of your sponsor licence, we would encourage you to instruct us as soon as possible so we can assist with the next critical steps you take.
One of the more serious consequences of revocation is that you would be unable to sponsor workers in the UK, including employees currently working for you under your sponsor licence whose employment may need to be terminated.
We will review the grounds of the decision, challenge any factual errors, advise you on required supporting evidence, address any breaches and advise you on remedial steps to address them, and crucially, support you with presenting a response to the Home Office. We will also provide you with the support necessary for any follow-up Home Office scrutiny such as a site visit.
This is always an unenviable situation to be in, but we have a lot of experience in helping sponsors who come to us in such trying situations.
Why work with Vanessa Ganguin Immigration Law?
We pride ourselves on our impeccable client care, swift results and tailored, boutique immigration advice. Our lawyers have experience across various sectors, including technology, manufacturing, engineering, energy, finance, media, entertainment and sports and will diligently support your business needs.
We offer a partner-led service, where you will be in the safe hands of senior immigration practitioners with decades of successful advice and a wealth of established contacts within the Home Office. Led by founder Vanessa Ganguin, our team of specialists are highly responsive and take a focussed approach to each case, prioritising clear communication and practical guidance for you and your teams.
Anyone concerned about sponsor compliance or wishing to discuss any work visa options can contact us on 0207 033 9527 or enquiries@vanessaganguin.com.