Visa fees reimbursement introduced for scale-ups in clean energy, life sciences, and technology

The UK government has recently launched the Visa Fees Reimbursement Scheme for Scale-Ups to encourage businesses in specific sectors to hire international specialists. The Department for Business and Trade (DBT) has set aside a limited fund to cover applications made under the scheme, which runs until 1 March 2027 (unless extended).

As has been the case for a number of years, the UK has significantly higher upfront work visa costs compared with countries such as Canada, Germany, and France. A large sponsor looking to hire a skilled worker for five years would be required to pay just over £14,000 in government fees for the main applicant, with an additional £33,000 if covering the costs of three dependant family members.

The reimbursement scheme allows eligible businesses to reclaim visa costs, incurred on or after 9 June 2026, of up to £5,000 per eligible international hire and their dependants, capped at £25,000 per business for each year.

Eligibility requirements

To be eligible, a business must be a UK-based scale-up with an annualised growth rate exceeding 20 per cent in either employment or turnover over a continuous three-year period, starting with at least 10 employees at the beginning of this period.

It must operate in the clean energy, life sciences, or digital and technologies sectors; however, (technologies related to advanced manufacturing, clean energy industries, defence, and life sciences are excluded as they are covered in separate sector plans.

The business must hold a valid sponsor licence for sponsorship under the Skilled Worker or Scale Up visa routes, though refunds are also available for Global Talent visa costs. It must pass the DBT standard due diligence and assurance checks prior to grant award and hold a valid UK bank account to receive reimbursements.

Documentary evidence about the role, the candidate specification, salary, and the visa being issued is required as part of the reimbursement application. Businesses can expect a decision within 30 working days of submission.

Osborne Clarke comment

The scheme operates on a first-come, first-served basis, and refunds will be denied if all funds have been allocated. As the DBT has not specified the total amount of funds set aside for the scheme, eligible businesses will want to act promptly to take advantage of this time-limited scheme as soon as possible.

Although the initiative will be welcomed by many businesses across the eligible sectors, greater transparency about the total funds available and whether the scheme will be renewed in early 2027 would have provided more certainty on how to plan their future hires.