Friday 5 January 2024

What is the IHS?

The IHS is a fee imposed on the majority of individuals applying for immigration permission in the UK.

Those applying under the Visitor route, the EU Settlement Scheme (EUSS) or for indefinite leave to remain in the UK (ILR) are exempt from paying the IHS (see the full list of exceptions here).

Under the Immigration (Health Charge) (Amendment) Order 2023 (‘the Order’) laid before Parliament on 19 October 2023, the IHS is set to increase from £624 to £1,035 per year for adult applicants and from £470 to £776 per year for children, students, their dependants and applicants under the Youth Mobility Scheme (YMS). This represents a 66% and 65% increase for the respective rates.

The increase was set to come into force on 16 January 2024, however, it is scheduled to be debated in the House of Commons on 10 January 2024 and the increase may only be implemented 21 days after it becomes law. The IHS increase should, therefore, take effect from 31 January 2024.

How much more will I need to pay?

The table below compares the current and increased IHS fees in different application scenarios:

Note that the IHS is charged in 6 month increments, meaning that applicants must pay half of the annual fee for a period including part of a year that is 6 months or less, and the full annual for a period including part of a year that is over 6 months.

How will this change impact migration to the UK?

The Government has recently published a statement predicting that the upcoming IHS increase will have ‘negligible impact on inflows’ of UK immigration […].

The statement goes on to say ‘[…] The increase in the IHS level may lead to a small reduction in visas issued on IHS-liable routes due to migrants being dissuaded from applying to come to the UK or to extend their visa by the higher price of doing so [….]’

We are yet to see what impact this will have on the UK immigration system, however, this significant increase will undoubtedly result in a more selective influx of migrants to the UK.

How can I avoid paying the increased IHS? How will this change impact me?

UK immigration applications made after the Order takes effect will be subject to the IHS increase. Note that the earliest this is likely to take place is on 31 January 2024, however, this may be pushed back to February or even later. Applicants wishing to avoid the increase in IHS must apply before the Order takes effect and those considering applying for UK immigration permission may wish to review their circumstances to determine whether they are eligible to apply earlier to avoid the increase in the IHS. Employers may also wish to consider proceeding with applications for foreign national employees as soon as possible.

Get in touch

Laura Devine Immigration offers strategic advice on all aspects of UK and US immigration and nationality law. If you would like advice on the upcoming IHS and how this may impact you or your business, please contact your assigned LDI lawyer or enquiries@lauradevine.com.