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Financial Impact
The Financial Penalty of Delay: 66% IHS Hike
December 05, 2025 •
5 min read
The Skill Migrants Alliance argues that defending the 5-year settlement route is critical due to substantial cost implications. The Immigration Health Surcharge (IHS) has increased 66% to £1,035 annually.
Should the settlement timeline extend from 5 to 10 years, applicants would face an additional 5 years of IHS payments. For a family of four, this extra 5-year period costs over £20,000 in IHS fees alone, on top of visa renewal fees.
The government's strategy involves using extended timelines and elevated fees to discourage skilled workers from pursuing UK settlement. SMA frames their advocacy as protecting workers from "this retrospective financial penalty," arguing individuals budgeted for a 5-year commitment and should not face 10-year costs.
Should the settlement timeline extend from 5 to 10 years, applicants would face an additional 5 years of IHS payments. For a family of four, this extra 5-year period costs over £20,000 in IHS fees alone, on top of visa renewal fees.
The government's strategy involves using extended timelines and elevated fees to discourage skilled workers from pursuing UK settlement. SMA frames their advocacy as protecting workers from "this retrospective financial penalty," arguing individuals budgeted for a 5-year commitment and should not face 10-year costs.