A spike in the proportion of unsuccessful sponsor licence applications indicates that the Home Office are viewing these applications with more cynicism than ever.
For much of the last three years, the rate of unsuccessful sponsor licence applications (meaning those which are refused, rejected, or withdrawn) has hovered around 20-25%. This relatively low rate of unsuccessful applications has been one of the contributing factors in the growth of sponsor numbers, with over 100,000 organisations now holding sponsor licences.
However, in the quarter between April 2024 and June 2024, this rate climbed to 30%. Then, in the July 2024 to September 2024 quarter, it further climbed to over 39%, with 3,245 applications being unsuccessful. At current success rates, for every five organisations that apply for a sponsor licence, two of them will be unsuccessful. Perhaps most worrying of all is the suddenness of the upward trend in unsuccessful applications – it is as of yet unclear whether this will plateau at some point, or instead continue to rise as it becomes more and more difficult to successfully submit a licence application.
It seems unlikely that the recent surge in unsuccessful applications is due to a sudden collapse in the quality of submitted applications. The more likely explanation is that the Home Office are taking a significantly more austere approach to these applications. There have been no announcements from the Home Office to confirm this, nor any changes in guidance which might explain why applicants are being tripped up. However, such an approach would align with the Home Office’s new modus operandi on sponsor compliance, with the ongoing crackdown on existing sponsors. The new Labour government have made clear that they are keen to reduce business reliance on immigration, and it is possible that informal internal guidance has been passed down, instructing Home Office caseworkers to take a more hardline approach to licence applications.
If we accept that the increase in unsuccessful applications is likely not based on pure coincidence, it is more important than ever that sponsor licence applications are as well prepared and watertight as can be, containing all of the required information and evidence, so as to not give caseworkers any excuse for a refusal. We are proud to have a 100% record of success on sponsor licence applications for our clients, and would be happy to advise you on and assist you with the preparation and submission of your sponsor licence application.
If you have any questions on sponsor licences or would like assistance with your application, please get in touch at [email protected].
