The Number of Sponsor Licence Suspensions Skyrockets!
Recent data from the Home Office, released last week, sheds light on an alarming trend: a sharp increase in enforcement actions against employers failing to meet their sponsor licence obligations.
Over the past 12 months, the number of sponsor licence suspensions has reached unprecedented levels. More than 1,700 licences were suspended between April 2024 and March 2025 — a figure that surpasses the total suspensions issued over the previous four years combined. This dramatic rise underscores the Home Office’s intensified focus on compliance.
In addition to suspensions, 1,560 sponsor licences were formally revoked during the same period. This number also far exceeds previous revocations, with only 1,530 licences revoked across 2019 and 2024. The surge in revocations signals a tightening grip on non-compliant employers.
Following Brexit, there was a spike in the number of businesses applying for sponsor licences as the skill and salary thresholds were relaxed. This created greater opportunities to hire overseas labour across every industry but particularly in the care sector. However, it now appears that the Home Office granted sponsor licences too readily, which has contributed to the widespread non-compliance issues we see today.
With an increasing number of non-compliance issues coming to light, the Home Office has recently issued stern warnings to employers: non-compliance will not be tolerated. They are prepared to revoke sponsor licences where necessary and are planning to make it more difficult for repeat offenders to re-enter the sponsor register. Longer cooling-off periods will be introduced for businesses with a history of breaches, preventing them from applying for sponsorship licences for extended periods and limiting their ability to hire overseas workers.
Four Key Steps Employers Should Take Right Now
1. Maintain Accurate Record-Keeping and Robust Compliance Systems
Implement comprehensive record-keeping processes tailored to meet sponsor licence duties. This includes maintaining accurate documentation for each sponsored worker — such as immigration status, right-to-work checks, and employment timesheets. The Home Office provides detailed guidelines on required documents and retention periods in Appendix D of the sponsor guidance. Proper documentation is essential for demonstrating compliance and avoiding penalties.
2. Fully Understand the Sponsorship Process
Familiarise yourself with every stage of the sponsorship journey — from understanding visa options for sponsored workers to the procedures for issuing Certificates of Sponsorship (CoS). Stay updated on any changes in immigration policies or procedures, as these can impact your responsibilities. Being well-versed in the process will streamline your operations and help you navigate challenges effectively. Make sure to review the latest Home Office sponsor guidance thoroughly.
3. Report Changes Promptly
Reporting is a core sponsor duty. Any significant change that affects your sponsored workers or your organisation must be reported within the stipulated timeframes — typically within 10 working days or 20 working days, depending on the nature of the change. Timely reporting helps maintain compliance and avoid penalties.
4. Conduct Regular Audits
Regular internal audits are essential. The Home Office conducts random inspections and can visit your premises at any time, announced or unannounced. Carrying out mock audits periodically can identify gaps in your systems and ensure your business is prepared for official visits.
Tailored Support for Your Business
At Smith Stone Walters, we offer customised advice and support to help your organisation maintain ongoing sponsor licence compliance. If you’re concerned about safeguarding your sponsor licence or attracting international talent, contact us today. Our experts are ready to guide you through these challenging times and ensure your continued success in global recruitment.
