Sharp rise in Sponsor Licence Revocations – What employers need to know

The Home Office has reported a record number of sponsor licence revocations over the past year, as part of its intensified efforts to crack down on abuse of the UK’s immigration system. According to newly released data, 1,948 sponsor licences were revoked between July 2024 and June 2025, more than double the 937 revoked in the previous 12-month period.

This significant increase forms part of the government’s broader strategy to strengthen immigration compliance and reduce overall migration. It also reflects a marked shift in enforcement practices, including the use of enhanced data-sharing and intelligence-led investigations in place of traditional physical compliance visits.

Key sectors under scrutiny

The Home Office has identified adult social care, hospitality, retail, and construction as the sectors with the highest levels of non-compliance. Common breaches leading to licence revocation include:

• Underpayment of sponsored workers
• Failure to provide the work as described in the Certificate of Sponsorship
• Facilitating visa applications that circumvent immigration rules

In many cases, revocations were linked to practices that undercut domestic labour or exploited migrant workers, issues that are receiving increasing attention from both policymakers and enforcement agencies.

Tougher sanctions and enforcement

Employers found to be breaching sponsor duties now face a broader range of penalties. In addition to licence revocation, sanctions may include:

• Civil penalty fines
• Business closure orders
• Potential criminal prosecution

The Minister for Migration and Citizenship, Mike Tapp MP, has reiterated the government’s commitment to holding employers accountable, stating: “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.”

A warning to sponsors

The sharp rise in enforcement activity should act as a clear warning to all current and prospective sponsors. Compliance with sponsor duties is under greater scrutiny than ever before. As the UK continues to refine its immigration system, sponsors must ensure they have robust systems and controls in place to meet all legal and regulatory obligations.

Failing to do so could not only lead to the loss of a sponsor licence but also reputational damage and financial penalties.

How Employers Can Respond

With revocations expected to rise further in the coming year, now is the time for businesses to:

• Review existing HR and right-to-work practices
• Conduct internal audits of sponsorship records
• Ensure compliance with all reporting and record-keeping duties
• Seek legal advice on any areas of uncertainty

The Home Office has made it clear that non-compliance, whether intentional or not, will not be tolerated.

Clarkslegal’s immigration lawyers are here to help. For further information or if you have any questions, please do not hesitate to get in touch with our immigration lawyers.