With thousands of international pharmacy students in the UK, are pharmacy owners missing a trick by not becoming approved sponsors with the Home Office? Richard Hough and Ikram Malik explain…

Pharmacy owners who fail to become sponsors and then proceed to hire workers from overseas put themselves at risk of significant financial penalties. So, how can owners attract new talent and fill vacancies?

Becoming a Home Office-approved sponsor 

The latest NHSE workforce survey suggests a decrease in the number of qualified pharmacists working in community pharmacy in England between 2022 and 2023. This may provide a further incentive for pharmacy contractors to consider employing workers form overseas in their pharmacies. 

A pharmacy business may apply to the Home Office to become an approved sponsor, provided they can show there is a genuine vacancy to fill or there is a skills shortage in the sector. The employer must demonstrate that they have appropriate monitoring systems in place and understand their duties as an approved sponsor. 

The ability to sponsor workers is a privilege, which comes with the responsibility to ensure that the system is not abused by the exploitation of workers and a duty to comply with immigration and wider UK laws.

The Home Office aims to process all applications within 8 weeks of submission of the online application and documents. 

Benefits of becoming an approved sponsor

Significant changes were introduced by the Government prior to the end of EU free movement, and UK-based employers recognised the need to fill shortages of staff with skilled workers from overseas. Benefits of contractors becoming an approved sponsor may include:

• Staff retention: Sponsored workers are required to complete at least 5 years under the skilled worker route before becoming eligible to apply for settlement in the UK. They are therefore less likely to change jobs than a settled worker. This may support continuity in community pharmacies, which are heavily reliant on locums.  Contractors might understandably be concerned about being used to move here, but it is important to note that a sponsored employee may only change employment to an employer that is also a Home Office approved sponsor.
• Staff shortages: A pharmacy may be struggling to recruit staff due to skills shortages or due to its geographical location. A sponsor licence would enable the employer to attract an overseas worker to fill the vacancy, who may be potentially more willing to relocate to some of the more remote parts of the UK.
• Attracting overseas students: A large majority of these pharmacy students are already residing here and seeking employment. Employers may benefit from an increase in job applications if they are able to offer sponsorship under the skilled worker route. Most people also need to pay the immigration health surcharge (IHS) as part of their online immigration application. A benefit to those healthcare workers and their dependent family members who chose to move to the UK, but also those that are already in the UK on a different visa (i.e. student or Graduate), is that they are also exempt from paying the IHS, which is currently £1,035 per year.

Costs of becoming an approved sponsor

Employers are often pleasantly surprised to learn the costs of sponsorship, with a small business sponsor licence application costing £536, but they should also be aware that they cannot transfer the cost to the employee.

Certificate of sponsorship (CoS)

An employer must assign a CoS to each worker they wish to sponsor, which typically costs £239. There is no limit on the number of CoSs an employer may request, provided there is a genuine vacancy, and the role is at the appropriate skill level. However, a vacancy will not be considered genuine if it is primarily created to facilitate the visa application to regularise an individual’s immigration status in the UK.

Skilled worker visa requirements and costs

The points-based system was introduced in 2008 with a view to controlling net migration to the UK, but also to ensure that UK businesses are able to recruit the best talent to drive the UK economy forward. An individual must submit a valid application for leave to enter or remain in the UK. They must score 70 points to meet the requirements:

The Home Office visa application fee for a sponsored healthcare worker is £284 for a visa up to 3 years and £551 for more than 3 years for applicants applying inside the UK.

Recent changes

The Government announced its plan to introduce changes to the immigration policy to control net migration to the UK and this came into force on 4 April 2024. This resulted in an increase in the minimum annual income requirement from £26,200 to £38,700, which received significant criticism from a number of sectors. 

The good news for pharmacy owners in the UK is that the new income requirement does not apply to healthcare workers.

The recent changes also saw a ban introduced on family members joining the main applicant to the UK; this ban does not extend to pharmacists, which means that such workers from overseas can bring their family (spouse/partner and children) to the UK as dependants.

If your pharmacy is considering hiring overseas workers, please get in touch for specialist legal advice.

Richard Hough is a partner and head of healthcare at Brabners and a former pharmacist. Ikram Malik is a partner and head of business immigration.