Sponsoring international workers has become essential for many businesses to meet recruitment demand. For some high growth businesses, the Scale-up Worker visa could be a lower-cost and more flexible way to recruit international talent. We explore what the Scale--up Worker visa is and how your business could benefit.
What is the Scale-up Worker visa?
The Scale-up Worker visa allows eligible high-growth businesses to recruit international talent. Sponsorship on this route is more flexible than on the Skilled Worker route. Crucially, the salary requirement is lower, which means a significant saving for some roles.
This route is practically unknown despite being open since August 2022. More than 130,000 employers currently have a Skilled Worker sponsor licence, yet there are currently only around 70 businesses operating with Scale-up Worker licences.
Why should employers consider the Scale-up route?
There are three key advantages of the Scale-up route: lower salary thresholds, lower employer costs and less admin for sponsors.
1.)Lower salary thresholds
The Scale-up Worker visa has lower salary thresholds than a Skilled Worker visa. The salary threshold is either the general minimum threshold of £39,100 or the going rate for the role – whichever is higher.
For comparison, the Skilled Worker visa has a general minimum threshold of £41,700, with higher going rates for some occupations. This can mean big differences in the minimum salary for some roles, as set out below.
| Role | Skilled Worker | Scale-up |
IT Manager
| £55,000 | £43,000 |
Chemical Scientist
| £41,700 | £39,100 |
Chief Executive
| £88,100 | £60,000 |
2.)Lower employer costs
The Scale-up Worker visa has significantly lower costs for employers than the Skilled Worker visa. Most significantly, the Scale-Up visa has no Immigration Skills Charge. This levy can cost employers up to £6,600 for five years of sponsorship. This saving alone could make obtaining a Scale-up sponsor licence worthwhile.
Additionally, the fee to assign a Certificate of Sponsorship to a Scale Up worker is only £55, as opposed to £525 to assign to a Skilled Worker.
3.)Less admin for employers
On the Scale-up Worker visa, sponsorship duties only apply for the first six months. In contrast, Skilled Worker sponsorship duties apply for the duration of the worker’s sponsorship – which could be up to ten years from Autumn 2026. This means less administration for employers, which is welcome news given the Home Office’s current focus on immigration compliance. For businesses that qualify, the Scale-up route can reduce the long-term compliance burden while still giving access to international talent.
Why does the Scale-up Worker visa attract international talent?
Skilled international citizens are mainly attracted to the Scale-up Worker visa because of its greater flexibility. Sponsored workers are not tied to their sponsoring employer after the initial six months of their visa.
It is currently also a route to settlement after five years. Unlike other visa routes – time spent on the Skilled Worker and Scale-up Worker visas can be combined to reach the qualifying period of settlement.
To sponsor a Scale-up Worker, a business must first apply for a sponsor licence in the Scale-up Worker route or add this route to an existing sponsor licence. To do this, they must meet the qualifying criteria:
- 20% annual growth in turnover or employment over three years; and
- at least 10 employees throughout this period.
The Home Office assess growth based on the company’s HMRC records. Where a new business does not yet have the necessary HMRC history, they can instead rely on endorsement from an approved endorsing body. The endorsing body will assess the company’s eligibility based on whether they meet specific mandatory and optional criteria.
The Home Office currently has three approved endorsing bodies for the Scale-up Worker route: Envestors, UK Endorsing Services and Innovator International.
Mandatory criteria
The endorsing body must be satisfied that the company:
- Has a minimum of 10 employees paying income tax and national insurance
- Is VAT-registered, solvent and trading in the UK, with a UK corporate bank account
- Has an HMRC footprint of less than 4 years
- Will meet the standard pathway criteria within the next 4 years
- Will be able to pay salaries to individuals working in skilled roles
Optional criteria – must meet three of five
The endorsing body must be satisfied that the company has:
- More than 20% growth in turnover or employer per year over a 2-year period
- Participated in a relevant UK Government programme or received relevant UK Government funding
- Raised of equity finance of at least £1m in a single round in the last 12 months
- An international presence and evidence of international sales
- Evidence of expenditure on research, development or innovation
Case study A: Standard pathway
Science Tech Limited is a rapidly growing specialist research company that has recently secured Series B investment, leading to increased turnover and headcount. Due to rising Skilled Worker salary thresholds and sponsorship costs, the business is finding it difficult to recruit specialist researchers and is seeking to sponsor a Development Chemist.
The company already holds a Skilled Worker sponsor licence and has identified a preferred candidate, Dr Hydrogen, who they are looking to sponsor on a five‑year visa. Dr Hydrogen is not eligible for the new entrant discount on the Skilled Worker route. The minimum salary for a Development Chemist is £41,700 under the Skilled Worker route, compared with £39,100 under the Scale‑up route.
Science Tech Limited has achieved turnover growth from £10 million to £35 million over three years and therefore meets the 20% annual growth requirement to sponsor under the Scale‑up route on the standard pathway. The company can add Scale-up sponsorship to its existing licence.
Assuming Dr Hydrogen remains with the business for five years, the company would achieve significant savings on sponsorship costs (up to more than £7,000) and over £2,500 in salary by sponsoring her on the Scale-up route.
Case study B: Endorsement pathway
AI Limited is a rapidly growing generative AI startup, founded three years ago by professors at the University of Edinburgh. The company has 15 employees, is registered for VAT and is trading in the UK.
The company participated in the Innovate UK EDGE scale-up programme and raised £3 million in its Series A investment round in the last 12 months. AI Limited opened an office in the USA last year, and 20% of its sales come from customers located outside of the UK.
AI Limited is on track to achieve significant growth in turnover and headcount of at least 50% within the next 4 years and is actively working with investors to further grow the company. They are also looking to recruit workers in skilled roles, such as programmers and software development professionals which would be eligible under the Scale-up route.
AI Limited can apply to become a Scale-up sponsor via the endorsement pathway.
Could the Scale-up Worker visa be right for your business? Contact Jacqueline Moore in our specialist immigration team for expert advice.
