UK Prime Minister Rishi Sunak has announced plans to significantly increase the fees and health surcharges paid by visa applicants, including Indians, to the National Health Service (NHS). While no official confirmation has been provided on the exact percentage of the hike, reports suggest it could be around 15 to 20 percent. Sunak aims to generate additional funds to support a public sector wage increase, which includes teachers, police officers, junior doctors, and other public sector workers. The wage rise across the board is estimated to be between 5 to 7 percent.
To avoid relying on increased borrowing, which could exacerbate inflation concerns, the UK government plans to raise the necessary funds through the increased charges on migrants applying for visas and the Immigration Health Surcharge (IHS) they pay to access the NHS. Sunak emphasized that he did not want to burden taxpayers with higher taxes and believed that additional borrowing would worsen inflationary pressures.
The proposed fee adjustments entail a 15 percent increase in work and visa fees, while all other visa fees will rise by at least 20 percent. The immigration health surcharge, initially introduced in 2015 at £200 per application, doubled to £400 in 2018 and rose to £624 in 2020. These charges will further escalate, collectively raising over £1 billion. Sunak outlined the necessity of finding alternative sources of funding to support public sector wage increases.
By increasing visa fees and the IHS, the government aims to allocate resources without burdening the taxpayers or resorting to additional borrowing. These measures reflect a proactive approach to ensure the sustainability of public sector wage rises while considering the potential impact on inflation. The adjustments to visa fees and the immigration health surcharge highlight the government’s commitment to balance the allocation of funds across various sectors. The decision to raise charges on visa applicants aims to ensure that those who benefit from the UK’s public services contribute proportionately to the costs.
This approach is expected to generate substantial revenue and relieve some pressure on the public purse. In conclusion, the UK government, under the leadership of Prime Minister Rishi Sunak, plans to increase visa fees and the immigration health surcharge to support a public sector wage increase. While specific percentages are yet to be confirmed, reports suggest a 15 to 20 percent hike. By pursuing these measures, the government aims to avoid increased borrowing and higher taxes, while ensuring that those who benefit from public services contribute fairly towards their costs.