Immigration Health Surcharge (IHS) to increase in October 2020

The Immigration Health Surcharge (IHS) is a fee which is levied on most visa applications in the UK. The healthcare fund is then used to run the National Health Service (NHS) and allows migrants to be able to access the NHS while living in the UK. In October 2020, the government will increase the annual Immigration Health Surcharge from £400 to £624. This was initially announced by Rishi Sunak, Chancellor, during his Budget speech.

The reduced Immigration Health Surcharge for students, dependants and those on the Tier 5 Youth Mobility Scheme will also increase from £300 to £470. Further to this, all children under the age of 18 will pay a surcharge of £470. When the new immigration system is in force in 2021, the fee will also be applicable to EEA nationals.

The increase effectively means that a migrant coming to the UK for 5 years will have to pay £3120, in addition to their visa fee. The UK has been notoriously known for its high visa fees and many are anxious that this will deter some of the best talent from around the world in applying to work in the UK.

The announcement has been somewhat confusing in the current climate. As the transitional period will end with the year, the government has stated that they are aiming to do more to attract skilled migrants to the UK. However, the increase in the IHS appears to debunk this.