The UK government has doubled the number of companies losing sponsorship licences due to undercutting wages and exploiting migrant workers, raising concerns over sector sustainability and oversight of immigration controls.
The number of companies prohibited from hiring migrant workers due to concerns about undercutting wages and exploiting staff has doubled over the past year, according to recent Home Office figures. In the year leading to June 2025, 1,948 sponsors responsible for skilled and temporary migrant workers had their licences cancelled, nearly doubling from 937 in the previous 12-month period. This surge reflects the government’s intensified crackdown on rogue employers who underpay migrant workers and simultaneously undermine fair wages for British workers.
Sectors such as adult social care, hospitality, retail, and construction are among the hardest hit by these abuses. Many of these companies have been found guilty of breaching rules including underpaying workers, failing to deliver the promised employment, and facilitating people’s entry into the UK through immigration loopholes. Migration Minister Mike Tapp emphasised the government’s stance by stating, “Those who abuse our immigration system must face the strongest possible consequences.”
However, concerns have been raised about the oversight of the licensing system itself. An investigation revealed that hundreds of newly established care providers have been granted visas to sponsor workers despite lacking a credible track record in the UK. Some of these companies have never been inspected by the Care Quality Commission and display warning signs such as generic websites and unverified reviews, which experts fear indicate potential fraudulence and exploitation of migrant workers. This points to a systemic vulnerability in monitoring sponsors, particularly in the care sector.
Reinforcing governmental enforcement, data also show a dramatic rise in the suspension and revocation of skilled worker licences. In the second quarter of 2024 alone, over 1,000 licences were suspended or revoked, a steep hike from just 117 in the same period in 2023. This illustrates the UK government’s intention to bolster border security and clamp down on employers who hire illegal workers or breach sponsor conditions.
Additionally, new Home Office guidance for employers has introduced tighter controls on financial practices linked to sponsorship. Employers are now prohibited from passing on certain fees, such as the Skilled Worker sponsor licence fee and Certificate of Sponsorship costs, to their migrant employees. Violations of this policy can lead to revocation of the sponsor licence. The guidance also specifies that employment agencies supplying sponsored staff to third parties cannot hold a sponsor licence, aiming to prevent abuses linked to labour supply chains.
Despite stronger enforcement measures, the sustainability of sectors heavily reliant on migrant workers, such as adult social care, remains a critical issue. Data reveals a staggering 93% drop in Health and Care visas issued to care professionals in the third quarter of 2024 compared to the previous year. This steep decline is attributed to tougher Home Office actions against sponsors. However, advocacy groups like the Work Rights Centre argue that these measures fall short of adequately protecting migrant workers from exploitation and call for further reforms to address workers’ rights and the sector’s long-term viability.
The ripple effects on migrant workers themselves are severe. Thousands of migrant care workers face the threat of deportation, often through no fault of their own, as a consequence of their employers losing their licence to sponsor them. Investigations show that over 3,000 care workers had their certificates of sponsorship cancelled in 2022 and 2023, with 94% linked to the revocation of their employer’s sponsorship rights. Many of these workers had invested considerable sums securing their jobs in the UK and now face deep uncertainty and potential loss of livelihood.
Overall, while the government is clearly intensifying its efforts to weed out unscrupulous employers exploiting migrant labour, significant challenges remain in protecting vulnerable workers and ensuring that sectors dependent on migrant employees remain sustainable. Greater scrutiny of the sponsorship system, tighter financial regulations, and enhanced worker protections will be crucial as the UK navigates these complex issues.
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Source: Noah Wire Services
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
8
Notes:
The narrative presents recent data and developments, with the latest statistics from June 2025 and references to events up to May 2025. The inclusion of updated data alongside older material suggests a higher freshness score but should be flagged for potential recycling. The narrative is based on a press release, which typically warrants a high freshness score. However, the presence of recycled content and the use of a press release indicate a need for further scrutiny. No discrepancies in figures, dates, or quotes were identified.
Quotes check
Score:
9
Notes:
The direct quote from Migration Minister Mike Tapp, “Those who abuse our immigration system must face the strongest possible consequences,” was found in earlier material, indicating potential reuse. No variations in wording were noted. The absence of online matches for other quotes suggests they may be original or exclusive content.
Source reliability
Score:
7
Notes:
The narrative originates from a reputable organisation, the Express, which strengthens its credibility. However, the presence of recycled content and the use of a press release introduce some uncertainty. The mention of Migration Minister Mike Tapp is verifiable, but the absence of online matches for other individuals or organisations mentioned raises concerns about their authenticity.
Plausability check
Score:
8
Notes:
The claims regarding the doubling of sponsor licence cancellations and the surge in enforcement actions are plausible and align with recent Home Office statistics. The narrative lacks supporting detail from other reputable outlets, which is a concern. The language and tone are consistent with UK English and the topic, with no inconsistencies noted. The structure is focused and relevant, with no excessive or off-topic detail. The tone is formal and appropriate for a government-related topic.
Overall assessment
Verdict (FAIL, OPEN, PASS): OPEN
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The narrative presents recent data and developments, with the latest statistics from June 2025 and references to events up to May 2025. The inclusion of updated data alongside older material suggests a higher freshness score but should be flagged for potential recycling. The direct quote from Migration Minister Mike Tapp was found in earlier material, indicating potential reuse. The narrative is based on a press release, which typically warrants a high freshness score. However, the presence of recycled content and the use of a press release introduce some uncertainty. The claims regarding the doubling of sponsor licence cancellations and the surge in enforcement actions are plausible and align with recent Home Office statistics. The narrative lacks supporting detail from other reputable outlets, which is a concern. The language and tone are consistent with UK English and the topic, with no inconsistencies noted. The structure is focused and relevant, with no excessive or off-topic detail. The tone is formal and appropriate for a government-related topic. Given the presence of recycled content, potential reuse of quotes, and reliance on a press release, further verification is recommended.
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