Between July 2024 and June 2025, the UK Home Office revoked 1,948 sponsor licences, more than double the 937 revoked in the previous year. This sharp rise is part of the government’s wider effort to tighten immigration controls and curb overall migration. It also signals a clear shift in enforcement strategy, with traditional in-person compliance visits increasingly replaced by data-driven monitoring and intelligence-led investigations.

Although the government has highlighted sectors like adult social care, hospitality, retail, and construction as areas of concern, sponsor licence revocations are driven by a much wider range of breaches. Common issues include inadequate record-keeping, delays in reporting changes to sponsored workers, and failures to meet obligations relating to job roles, salaries, and working conditions.

Stricter Penalties and Enforcement Measures

Employers who fail to meet their sponsor obligations are now exposed to a wider range of penalties. Beyond licence revocation, potential consequences include:

· Civil penalties and substantial fines

· Temporary or permanent business closure orders

· Criminal prosecution in serious cases

 

Ongoing Compliance: Key Responsibilities for Sponsors

This significant rise in licence revocations underscores the importance for sponsors to view licence management as an ongoing compliance obligation—not just a one-time eligibility hurdle. Sponsors must maintain robust internal processes to meet their duties, especially in key areas such as:

· Promptly reporting any changes (e.g., job title, work location, salary)

· Maintaining accurate records and ensuring audit readiness

· Conducting thorough right-to-work checks and monitoring ongoing eligibility

· Overseeing sponsored workers’ attendance and adherence to their assigned roles

· Properly using the Sponsor Management System (SMS) and submitting reports within required deadlines

Regular internal audits and policy reviews are essential to reduce risks. Additionally, seeking external advice or performing mock audits can help identify and resolve compliance gaps before they lead to serious consequences.

 

How Muldoon Britton can help

Our immigration compliance services are tailored to help organisations navigate changing regulations and reduce the risks of non-compliance. With UKVI’s enforcement becoming increasingly stringent, it’s more important than ever to proactively prevent any enforcement actions against your organisation.

Get in touch with our immigration team today to review your sponsor licence obligations and protect your business from costly enforcement action.