Home Office introduces visa fee reimbursement scheme for Scale Ups

What is the scheme?

The Visa Fees Reimbursement Scheme for Scale Ups provides financial support in respect of eligible visa application fees for specialist hires and their dependents in the Clean Energy, Life Sciences and Digital Technologies Sectors.

Eligible businesses can apply for funding worth up to £25,000 per year, with a maximum award of £5,000 for each international hire and their dependants. The Home Office have provided that the scheme is available on a ‘first-come, first-served basis’.

Applications for the scheme will be accepted from 16 June 2026, and the scheme is scheduled to close on 1 March 2027.

Who is eligible for the scheme?

To qualify for the scheme, a business must meet all the following criteria:

• Be a UK-based Scale-Up
  • The business must achieve an average annualised growth rate exceeding 20% in either employment or turnover over a continuous three-year period (the ‘Observation Period’), with at least 10 employees at the beginning of this period
• Operate in at least one of the following three priority sectors:
  • Clean Energy – companies that are part of the supply chain, manufacturing and services relating to the deployment, construction, and maintenance of clean energy assets and products
  • Life Sciences – businesses involved in the development and production of pharmaceutical products, and those whose primary business involves developing and producing medical technology products
  • Digital and Technologies – businesses that develop and apply advanced technologies and digital tools to drive transformative changes in the economy and society
• Hold a valid UK sponsor licence
• Have established a presence in the UK, either through incorporation in the UK and registration with Companies House, or registration with Companies House as having a UK establishment
• Recruit eligible hires under the Skilled Worker, Global Talent and Scale Up visa routes
• Pass Department for Business and Trade standard due diligence and assurance checks
• Have a valid UK bank account to receive reimbursements

What impact can the scheme have?

The Home Office’s stated objective of the scheme is to reduce cost barriers for hiring international candidates, with a focus on sectors central to the UK’s growth and innovation ambitions. On the surface, this is a positive move – by partially covering some of the costs for international recruitment for employers in the priority sectors, these companies may be less restricted when it comes to targeting high-potential candidates from abroad, benefitting their growth plans. 

However, there are some key elements of the scheme that require further scrutiny. An aim to reduce cost barriers would certainly benefit those looking to recruit abroad, however the overall costs for an employer may still far exceed the amount of the grant. If an eligible business wanted to sponsor a prospective candidate for entry clearance under the Skilled Worker for three years, there are currently the following costs that would need to be covered:

• Visa application fee - £819
• Immigration Health Surcharge - £3,105
• Certificate of Sponsorship assigning fee - £525
• Immigration Skills Charge (for a medium or large sponsor) - £3,960

Whilst the grant would therefore provide a helpful financial boost for eligible businesses, it is unclear how many of the above elements the grant would cover as the phrase ‘eligible visa fees’ has not been defined, where this may only extend to the application fee.

Although this attempt to reduce the barriers for hiring international candidates is a welcome move, it is also worth noting that this development follows on from a series of policy changes from the current government which have hugely restricted the ability to recruit from overseas in recent years. In the last year alone, the fee for the Immigration Skills Charge has been increased by 32% and the required job level for sponsorship has been increased to RQF6, which resulted in more than 100 skilled occupations becoming ineligible for sponsorship going forward. We also saw further increases to the minimum salary thresholds that Skilled Workers must be paid by their sponsoring employers. 

The introduction of the Visa Fees Reimbursement Scheme could perhaps be a sign that the UK Government recognises it now in fact needs to do more to attract top talent to the UK and help UK businesses to scale. However, it remains to be seen how much of an impact the scheme can have in isolation due to its limited scope, where the Home Office must make a concerted effort to support international recruitment through other similar schemes and policies.

Conclusion

If you are potentially eligible for the scheme and would like further advice regarding a potential application, or need advice in respect of sponsoring international workers, our team of experts are happy to help. Please contact a member of the team for further information via immigration@irwinmitchell.com.