Home Office Raids and the Rising Sponsor Licence Compliance Risks for UK Businesses

In recent months, the UK Home Office has significantly intensified its efforts to combat illegal immigration, conducting a series of high-profile raids across various industries. Various sectors have been targeted – from hospitality, personal care, and automotive services to restaurants, nail salons, car washes, and convenience stores. This comprehensive crackdown has led to a substantial rise in enforcement actions, including arrests and deportations.



How Will UK Home Office Raids Affect Sponsor Licence Holders?

In January 2025 alone, Home Office compliance teams raided 828 business premises, resulting in 509 arrests – a 73% increase compared to the same month in the previous year. These operations are part of a broader strategy to tighten border security and address illegal employment. Since the Labour government took office, nearly 19,000 individuals, including undocumented workers and those without legal right to remain, have been removed from the UK.


While these measures primarily target unauthorised workers and non-compliant employers, they carry significant implications for businesses that legally employ foreign workers under the UK sponsor licence system. Holding a sponsor licence permits companies to sponsor migrant workers; however, it also imposes stringent UK immigration compliance obligations. Given that the Home Office is increasing its focus on foreign workers, sponsor licence holders must expect heightened scrutiny of their compliance practices. Non-compliance can result in severe penalties for up to £60,000, and lead to sponsor licence suspension or revocation.



Escalation in Sponsor Licence Audit and Enforcement

Recent data indicates a significant increase in enforcement actions against UK sponsor licence holders. Between January and March 2024, the Home Office suspended 309 Skilled Worker visa UK sponsor licences and revoked 210, representing the highest level of activity in nearly a decade. 

This trend continued into the second quarter of 2024, with 1,023 licences either suspended or revoked – 524 suspended and 499 revoked. This is a dramatic increase compared to the same period in 2023, which saw only 89 suspensions and 28 revocations. 

The upward trajectory persisted throughout the year. By the end of the third quarter of 2024, the cumulative number of suspensions and revocations had surged, reflecting the Home Office's intensified focus on UK immigration compliance. This escalation underscores the critical importance for sponsor licence holders to maintain rigorous adherence to all regulatory requirements.



Why UK Sponsor Licence Holders Should Be Concerned

The recent surge in Home Office compliance raids signals more than just an attempt to remove undocumented workers. It highlights an evolving strategy where businesses employing foreign workers – even legally – are being placed under the sponsor licence audit microscope. Since many of these raids occur in industries that rely heavily on immigrant workers, it is likely that sponsor licence compliance checks will become even more stringent.

The message is clear: if your business employs immigrant workers, expect greater scrutiny from the Home Office. Even minor lapses in UK immigration compliance could lead to penalties, and with increased enforcement, the likelihood of being audited is higher than ever. Compliance is no longer just about legal employment – it's about ensuring that every aspect of sponsor licence application duties is met to avoid severe consequences.


Learn about navigating Home Office Audits in our blog



UK Work Visa Compliance Obligations for Sponsor Licence Renewal

The Home Office's heightened enforcement activities serve as a stark reminder to UK sponsor licence holders to ensure compliance with the regulations. Businesses must fulfill specific duties to retain their sponsor licence, including:

  • Record-Keeping: Maintaining accurate and up-to-date records of all sponsored employees, including copies of passports, biometric residence permits, and contact details.
     
  • Reporting Duties: Notifying the Home Office of any significant changes, such as alterations in an employee's role, salary adjustments, or termination of employment, typically within 10 working days.
     
  • Compliance with Immigration Laws: Ensuring that sponsored employees have the appropriate qualifications, are performing the job role specified in their Certificate of Sponsorship, and are receiving the correct salary as per the prevailing rates.
     
  • Monitoring and Supervision: Implementing robust systems to monitor sponsored employees and prevent unauthorized employment.

Learn more about staying compliant in our blog


Given the current climate of increased enforcement, it is imperative for businesses to proactively manage their UK immigration compliance responsibilities. Failure to meet these obligations can lead to severe consequences, including sponsor licence revocation, substantial fines, and reputational damage.

 

 

How Can Nation.Better Help You? 

At Nation.Better, we provide immigration compliance support to hundreds of UK businesses that includes sponsor licence compliance management, mock compliance audit, to ensure ongoing adherence to Home Office compliance regulations. 

Our team of experts provides tailored support, so your organisation remains compliant at all times, while minimising the risk of sponsor licence penalties, suspension or revocation. Contact us today to learn how we can help safeguard your business and its valued employees.