New visa fee reimbursement scheme for UK scale-ups

The UK Government has launched a new Visa Fees Reimbursement Scheme for Scale-Ups (VFRS4SU), aimed at reducing the cost of hiring international talent in key growth sectors.

This is a targeted funding opportunity for eligible businesses and may be of particular interest to employers already holding a sponsor licence.

What is the scheme?

The scheme allows qualifying UK scale-ups to recover visa-related costs for sponsoring overseas workers and their dependants. Eligible businesses may be able to claim up to £25,000 per year, with up to £5,000 available per individual hire, including dependants. Funding is limited and will be allocated on a first-come, first-served basis, so timing is important!

Eligible visa costs incurred from 9 June 2026 onwards may be reimbursed.

Who can apply?

To qualify, businesses must meet the definition of a UK scale-up, which includes demonstrating annual growth of more than 20% over a three-year period and having at least 10 employees at the start of that period. The business must also operate in one of the eligible sectors, namely Clean Energy, Life Sciences, or Digital and Technology, hold a valid UK sponsor licence, and have an established UK presence while passing the required due diligence checks.

The scheme applies to hires sponsored under the Skilled Worker, Global Talent, and Scale-up routes.

Application process and timing

Applications open on 16 June 2026, and decisions are expected within approximately 30 working days. The scheme is currently stated to run until March 2027, although the published guidance appears to be inconsistent on deadlines, which means businesses may wish to act promptly rather than rely on the full stated timeframe.

Wider context

The scheme forms part of a broader government strategy to support high-growth UK businesses, help offset the rising cost of the immigration system, and attract and retain global talent in key sectors.

Key considerations for sponsors

For sponsors, the key point is to review eligibility and timing as early as possible. Funding is capped and may be oversubscribed, so businesses should consider now whether any upcoming hires could qualify. It will also be important to ensure that sponsor licence compliance is in good order, as this is likely to form part of the due diligence process.

How we can help

We can advise on whether your business is likely to qualify for the scheme, review your sponsor licence compliance position, and help you consider how future recruitment plans may be structured to maximise eligibility. We can also assist with sponsor licence applications or upgrades.

If you would like to discuss how this scheme may benefit your organisation, please get in touch with our immigration team.