The UK government says a pivot to intelligence-led compliance has driven record sponsor-licence revocations over the past year, with high-risk sectors under close scrutiny.

The Home Office has cancelled a record 1,948 employer sponsor licences in the 12 months to June 2025, barring those firms from hiring workers from overseas. The total, confirmed on September 11, is more than twice the 937 revocations recorded in the preceding year.

Officials say the increase reflects a strategic shift, with wider data sharing across government and law enforcement replacing reliance on in-person inspections. Enforcement teams reported higher volumes of illegal working operations and outcomes during the same period.

Adult social care topped the list of sectors hit by compliance action, followed by hospitality, retail and construction, according to the government release. The pattern mirrors concerns raised over labour exploitation in parts of the care economy.

Looking beyond the UK, Europe is also tightening external-border management through upcoming IT systems such as EES and ETIAS, a shift meant to modernise checks and reduce abuse.

When a sponsor loses its licence, existing Certificates of Sponsorship are cancelled and sponsored workers’ visas are typically shortened to 60 days (or the time remaining if less). During that window, they must secure a new sponsor, switch route or depart the UK.

As compliance escalated, arrests for illegal working rose by 51 percent year on year up to June 28, 2025, Home Office data shows. Civil penalties also increased, with employers facing fines of up to £60,000 per illegal worker.
GOV.UK

Those who abuse our immigration system must face the strongest possible consequences. We will not hesitate to ban companies from sponsoring workers from overseas.

This week the government also warned it could reduce visa access for countries that delay or refuse returns of people with no right to stay, signalling further pressure on non-compliant actors across the system.

For applicants weighing destinations, the wider demand for European travel and work remains strong. Our reporting on last year’s Schengen figures offers a sense of scale, including the costs many applicants faced when visas were refused.