Home Finance Care providers to face greater financial strain as Home Office proposes fee increases for certificates of sponsorship

Care providers to face greater financial strain as Home Office proposes fee increases for certificates of sponsorship

by Kirsty Kirsty

Care England, the leading voice of adult social care providers in England, has raised serious concerns over the Home Office’s proposed fee increase for Certificates of Sponsorship (CoS), warning it will exacerbate the intense financial pressures already crippling the sector. 

The proposal would more than double the CoS fee, from £239 to £525 per individual, imposing an additional £286 cost per international recruit. This equates to an estimated £10.3 million sector-wide cost for care providers already grappling with severe workforce shortages, escalating operational expenses, and funding deficits compounded by the Employer National Insurance Contribution increases announced in the 2024 Autumn Budget. 

This comes on top of the government retaining severe restrictions introduced in the April 2024 immigration changes, including the ban on dependents for overseas social care workers, which caused a drop from 105,000 international recruits in 2023/24 to 18,000 in the first half of 2024 according to Skills for Care. Despite policy decisions seemingly designed to make international recruitment as unappealing as possible, providers are left with no viable alternative in the absence of a comprehensive workforce strategy to support the domestic care workforce.  

Care England has long emphasised the vital role international recruitment plays in addressing workforce shortages within the care sector. The Sector Pulse Check 2024 Report, recently published in collaboration with Hft, highlights the deepening crisis: 40% of providers have been forced to rely more heavily on agency workers to cover staffing gaps. These figures highlight the indispensable need for international recruitment to address persistent, long-term vacancies. Introducing these policies directly undermines what the sector desperately needs at its most vulnerable moment, piling further financial strain on providers when demand for care services is surging and the system is already stretched to breaking point. 

Professor Martin Green OBE, Chief Executive of Care England, stated: 
“These proposed fee increases represent yet another blow to social care providers, compounding what is already a devastating situation for the sector. The 2025/26 financial year is set to be the hardest yet, with providers facing an attack on all fronts. The Autumn Budget dealt an incredibly harsh blow, leaving many providers scrambling to plan how they will survive the coming year. This latest announcement only exacerbates the crisis. International recruitment has been a lifeline for the sector, proving to be the saving grace as providers endure an unprecedented domestic workforce crisis with no meaningful government support to address it. Targeting international recruitment with these fee increases is an attack at the very heart of the sector’s ability to function. Care providers are already fighting to sustain services, and these additional costs will push many to breaking point. The Government must reconsider its position immediately. Without urgent action, this relentless financial strain will jeopardise care delivery for the millions of people who depend on it. The time for meaningful workforce reform and investment is long overdue.” 

Care England calls on the Government to urgently reconsider the proposed fee increases for CoS and to develop a comprehensive workforce strategy that supports both domestic and international recruitment, ensuring the long-term sustainability of the adult social care sector. 

Image depicts Care England logo

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