The Home Office has revoked an unprecedented number of sponsor licences over the past year, with 1,948 licences stripped from employers between July 2024 and June 2025. This represents more than double the 937 sponsor licence revocations in the previous 12 months, according to information we obtained from the government’s recent announcement.
To put these figures into context, just 261 licences were revoked in 2021-22 and 247 in 2022-23 during the same period. This dramatic increase raises important questions about whether the sponsorship system is working as intended.
The violations uncovered are serious. Employers have been underpaying migrant workers, helping individuals circumvent immigration rules, and failing to provide the work they promised when sponsoring visas. Adult social care, hospitality, retail and construction have emerged as the sectors with the highest levels of abuse.
Minister for Migration and Citizenship, Mike Tapp MP, stated:
“Those who abuse our immigration system must face the strongest possible consequences. 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.”
The Home Office has also announced a 51% surge in illegal working arrests compared to the previous year, and removals have increased by 13% with 35,000 people removed. Additionally, the UK will now cut visa access for countries that don’t comply with returns of migrants who have no right to remain.
But is this aggressive enforcement strategy solving the problem or creating new ones?
Adult social care is already facing a severe staffing crisis. Revoking sponsor licences from care providers at this scale could leave vulnerable people without adequate support. Similarly, hospitality and construction sectors, which have long relied on migrant workers to fill essential roles, may struggle to operate effectively.
Implications of rapid sponsor licence revocation
It makes me wonder whether the Home Office has considered the practical implications of removing sponsorship rights from nearly 2,000 employers in a single year. While exploitative employers certainly should face consequences, are legitimate businesses being caught in the crossfire? The shift from physical compliance visits to intelligence-led enforcement may be more efficient, but it also raises questions about whether employers are being given adequate opportunity to rectify minor compliance issues before facing the nuclear option of licence revocation.
Rather than simply revoking licences at record rates, would it not be more effective to implement a graduated system of warnings and penalties that allows genuine employers to improve their practices? This could help protect vulnerable workers while maintaining the workforce that many sectors desperately need.
The government clearly believes that demonstrating tough action will address public concerns about migration levels. However, with current trends suggesting revocation numbers will exceed even this year’s record, one has to question whether this approach is sustainable or whether it will simply drive more employers and workers into the grey economy.
Final thoughts
For employers currently holding sponsor licences, particularly those in the high-risk sectors identified, the message is clear: compliance is no longer optional. The days of lax enforcement are over. But this also means that employers need clear guidance and support to ensure they can comply with increasingly complex immigration rules.
I have no doubt that exploitation of migrant workers must be addressed. Workers who depend on their employers for their immigration status are particularly vulnerable to abuse. However, removing sponsor licences in mass may not be the answer if it simply pushes these workers into even more precarious situations.
If you are an employer concerned about your sponsor licence compliance, or if you have received a compliance notice from the Home Office, it would be wise to seek professional advice immediately. The cost of non-compliance has never been higher, and as we’ve seen from these figures, the Home Office is not hesitating to take action.
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