Navigating new UK Visa fees: Higher costs but opportunities abound, affirms JP Breytenbach

9 th October 2023 South african 

The UK has recently implemented significant changes in visa requirements and fees, including the possibility of a substantial increase in the immigration health surcharge (IHS). These changes are part of the efforts of the UK government to ease the burden on its National Health. The Director of Breytenbachs Immigration Consultants, JP Breytenbach, told BizNews that  South Africans aspiring to apply for a UK visa should be prepared for higher costs and careful planning. While the changes may appear daunting, various immigration options remain available, especially for skilled workers. The UK, he said, is still pro-immigration, even though it wouldn’t always look that way.  Linda van Tilburg

Caught off-guard by new changes

It’s something that caught a lot of us off guard a little bit. The UK actually raised their fees on 4 October 2023. It’s quite a substantial increase, a lot more than we’ve ever seen in one go. The government has also, in addition to upping the fees for the processing, which they justify by saying they haven’t done so for several years and that is justified because by inflation.They want to cover the costs for processing the visas and they’re going to increase the IHS, the immigration health surcharge quite substantially. It has to go through parliament; they can’t just decide one day, this is what we want to do. There’s been a lot of pushback against this from various industry groups because it’s almost becoming prohibitively expensive to immigrate to the UK. The immigration health surcharge is a particularly vexing issue for many of our clients because you pay for it in advance for five years, for example. If the new fees come in, as they’ve suggested they will, they haven’t given exact numbers, but they have indicated percentages. It might very well cost for one individual, on an ancestral visa which is valid for five years, over £5,000 simply for the IHS fees, never mind all the other fees. In addition to that, once they start working in the UK, they don’t get a rebate. Once they start paying national insurance contributions, a large part of that goes to the NHS, they do not have the choice to elect to get private medical care or cover instead of paying the government, which I think would have been a sensible option. We’ll have to wait and see what happens. We are estimating that January will probably be the month when clarity will hopefully be given. 

Profile of South Africans applying for UK visas has changed

Before Brexit, we’ve seen a large influx of South African citizens or European passports to the UK because they wanted to make that deadline. There’s always been a push factor out of South Africa and traditionally, there’s been a very strong pull factor into the UK. The last year or so, things have been a little bit tricky with the economy. The profile of clients has changed a little bit. I personally do a lot more corporate work, our high net worth individual work. A lot of businesses are looking to expand into the UK, with market saturation in South Africa. They have a good product and believe they can compete globally and they really can if you consider  the success of many of the companies we’ve taken over to the UK over the years. But, I think we’ll always find South Africans who want to go to the UK given all the cultural ties, the historic ties and so forth. 

South Africans who want to apply for UK visa need to plan carefully

I would advise them to do so carefully and to make sure they plan things properly. We found, generally speaking, if you plan things properly, you get good advice and you’re not in a rush, then things tend to work out. The UK has changed previous options, tweaked them a little bit, and called them something new, but many of the options pretty much stay the same. To illustrate, there’s a category called the expansion worker, which used to be called the sole representative of an overseas business. The idea behind it really is you’ve got a business, let’s say in South Africa, that business wants to expand to the UK.  The company is created in the UK, a senior member of staff goes across for two years and then that company gets licensed and then you fall under the skilled worker category again, which is the premier route. So, it’s very clever in a way as you get people in the U.K. and then they go onto the skilled worker route because of course it’s easier for the government to manage that.  They’ve got all the systems to manage skilled workers. So that’s the main difference, that you now have to eventually fall under the skilled worker category. 

Skilled worker visa popular with South Africans, opportunities in entrepreneur route 

The skilled worker visa is quite a popular category with many of our clients. Another one that they’ve changed recently is the innovator founder visa. Effectively the idea is that you apply, you’ve got an innovative and scalable business idea and you then apply to what’s known as an endorsement body and that endorsement body endorses you and you can go to the UK to operate that business. Now what they’ve done, which is interesting, you used to have a minimum amount of money that you had to invest into that business. This all replaced the old tier one entrepreneur route where you used to have to have £200,000 which was reduced in effect to £50,000 and now there’s no amount needed. You can also work full-time in a capacity whilst you are getting your business up and running. 

UK Government is still very much pro-immigration 

The government in a sense is still very much pro-immigration. They have to be. What I believe makes it very difficult for the government, not in their defence, but to an extent; they had Brexit, which was an amazing upheaval. Then we had the Ukraine war, which is of course, unfortunately, still ongoing. My team and I assisted many of the Ukrainian refugees, especially in the beginning. The Law Society made a call for practitioners to do that, and we did try to do our part, but many, many other firms, of course, did their part as well. But it stopped a lot of these projects and plans that the government had for a while and we’re seeing those programmes slowly coming to the fore again. A good example is, in June last year there was a new British nationality act that came into force that had very far-reaching changes for anybody who has a claim to British nationality. That law should have come in much earlier, but because of everything that happened, it only came in quite a bit later and the processing times there are easily looking at a year, whereas for a normal processing time you’re looking at three months or so, but it is slowly getting better. The government, they really are trying their best and I think they are slowly getting ahead of their backlog that was created.

Still a lot of options for South Africans who want to live and work in the UK

If you have any British lineage, grandparents, great grandparents born in the United Kingdom, they can consider looking at the new legislation that was passed. A lot of it has to do with anti-discrimination legislation. It used to be the case that if you were born before 1983 to a British mother and she was born abroad, she could not pass on citizenship to you whereas the father could. Then that changed retrospectively. But then it was only if your mother was born in the UK, not if she was born abroad to a British-born father, because she would have been British by descent, but if she was male she could have done it. It’s a case called the case of Romaine, which is a very famous case. Then that changed and now this new Act that came in 2022, tried to expand that further. 

So, there are a lot of changes like that that have occurred, that’s definitely worth looking into. Furthermore, in planning for your children, for them to go study in the UK upon completion, they can apply for a graduate visa or a skilled worker. There are a large number of options but planning is the key thing. If this is something somebody wants to evaluate, speak to us or somebody like us, let’s make a feasible plan, and then work that plan. Then, generally speaking, things tend to work out.

90% of South Africans apply for the Sake of Children’s Futures

Some would say it’s more possible than ever before. Yes, it is expensive. However, compare that to medical aid and the cost of living in South Africa. You should do your maths. It’s a very different way of working out budgets when you live in the UK. I do believe it’s worth it if that is something you want to do, especially for your children. 90% of our clients do it for the children. Nothing’s forever. After six years, you’re a British citizen, and then you can sort of relook at everything. Possible, though, and there are quite a lot of options. The UK is still pro-immigration, even though it wouldn’t always look that way.

Why immigration numbers don’t add up

Home Affairs Minister Clare O’Neil is announcing big changes to the visa system, but that won’t do much to deter surging net immigration numbers.
Anthony Albanese says his government inherited a migration system that was “not fit for purpose”. That’s true. Just how Labor expects to fix the biggest issues in migration is still not clear after the release of its response to visa fraud and exploitation on Wednesday.
According to Home Affairs Minister Clare O’Neil, she is getting on with the job of cleaning up the mess left by one particular ministerial predecessor Peter Dutton  who she claims presided over a failing migration system that facilitated “some of the worst crimes in our society”.
The government’s commitment is to crack down much harder on visa rorts and fraudulent agents while offering up some dramatic expulsions of criminal sex and drug traffickers.
Naturally, Dutton denounces all this as a distraction on the eve of the Voice referendum, arguing he cancelled 6000 visas of criminals far more than O’Neil has managed. He won’t be taking lectures from Labor, he insists, given its previous record of “losing control of the borders”.
The Opposition leader also blames O’Neil for “presiding” over 105,000 asylum seekers without acknowledging most arrived in the Coalition era. Labor is about to announce reforms in this area too.
But beyond trading political barbs over criminality or abuse or asylum seekers, the larger policy dilemma for the government is surging legal net overseas immigration numbers.
These are running at well over 450,000 to the year to March relative to the official annual delivery of 190,000 permanent visas for migrants.
Immigration numbers are always a sensitive issue domestically, especially in Sydney and Melbourne which attract the majority of new migrants.
How this official 190,000 permanent annual intake will work with the much higher number of temporary visa holders remains to be explained.
Successive Australian governments have always expressed pride in a highly successful multicultural society given nearly 30 per cent of people were born overseas  far more than the comparable figures in the US (14 per cent), the UK (17 per cent) or Canada (23 per cent). Another 20 per cent plus of people in Australia have at least one parent born overseas in a country that has relied heavily on waves of immigration over generations.
Given the low unemployment rate and the extreme labour shortages, business certainly wants to encourage more immigration now, whether temporary or permanent. The union movement is traditionally reluctant to endorse this rather than providing more training and jobs for Australians. But when housing supply is so scarce and rents so expensive, the politics of today’s record numbers become ever more difficult generally.
Federal governments are careful never to express detailed opinions on what the long-term targets for net overseas migration should be, wary of reviving the “big Australia” debate and, more recently, of risking Australia’s lucrative export revenue from international students.
The intergenerational reports under both the Coalition and Labor simply nominated the figure of 235,000 as a Treasury “assumption”.
O’Neil maintains that one of the real drivers of today’s high figure for net overseas migration is lower departure numbers.
“People are coming and they are staying for longer and in some instances they are not leaving,” she said. “We can’t run a sustainable migration system in that way.”
Yet, the obvious benefits in making it easier and quicker to expel criminals and dodgy long-term visa holders or blocking highly dubious international student applications will do relatively little to reduce overall numbers in Australia.
As of July this year, there are just over 2.5 million people here on temporary visas. This figure, though, includes around 700,000 New Zealanders who will now find it easier to get Australian citizenship after Labor agreed to this pathway for those who have lived here for more than four years.
As well as around 650,000 international students, 200,000 graduates, 330,000 visitors and 130,000 working holidaymakers, there are 130,000 temporary skilled workers and 190,000 temporary visa holders who are also employed.
Labor’s immigration policy reforms to be announced this month will focus on encouraging the particular skills the workforce badly needs while also allowing more temporary visa holders to become permanent residents.
Measures will include simplifying the plethora of categories and visas, reforming the current complicated “points” system and fast-tracking approvals for both highly paid professionals and for lower paid workers in aged care. Temporary visa holders won’t have to remain with their sponsor employer.
Yet how this official 190,000 permanent annual intake will work with the much higher number of temporary visa holders remains to be explained.
Some of those on temporary visas and already here, including international students, will be granted permanent status from that annual quota, for example. But many more temporary visa holders have been staying despite having no real prospects of being granted permanent residency while new temporary visa holders continue to flood in. There are 200,000 more international students who have arrived since the beginning of the year.
The government’s tougher compliance and education standards for student visas  as well as a reduction in work hours permitted  may reduce that imbalance over time. But it’s hard to imagine Labor can engage in mass deportation, especially when many of those here can legally extend their stay by enrolling in more courses.
Such training should logically fit with Australia’s desperate need for more skills and trained workers  assuming, of course, that the courses are appropriately tailored and adequate to address the real shortages.
So far, meeting that goal, too, has proven elusive.
Jobs and Skills Australia’s report released on Wednesday notes Australia faces a skills challenge not seen since the 1960s. It predicts that as well as building the necessary training and skills in the vocational and higher education sectors, the government’s migration reforms will allow skilled migration to effectively address labour shortages and boost productivity.
That’s the harder test to come.

Anger mounts over UIF chaos as business, labour call for crackdown

Thulas Nxesi, Minister of Labour and Employment, wants action against his director general for UIF investment dalliances. 

• Dysfunction and corruption are crippling the UIF, say Cosatu and BUSA.

• The heads of the UIF and the Department of Labour are now on the chopping block.

• A full audit of unlisted investments has been called for.

Both business and organised labour on Wednesday called for the Unemployment Insurance Fund (UIF) to be placed under administration and its investments investigated independently as the fund sinks deeper into dysfunction, and suspicion of corruption grows. 

The UIF is an employer- and employee-funded social security fund collected through a payroll tax on all formal sector workers. While the government does not contribute to the fund, it is administered by the Department of Labour and Employment, with business and labour playing an advisory role. 

But workers, who can draw on the funds when they become unemployed or take maternity leave, are made to wait months for benefits, if these are paid at all, due to UIF systems failure. 

The UIF sits on investments of about R130 billion, managed by the Public Investment Corporation (PIC). In its annual report this week, the PIC noted that the UIF investments had slightly underperformed against the investment benchmark. 

Cosatu, which added its voice to a statement released by Business Unity SA (BUSA) earlier in the day, now wants all UIF employees subjected to lifestyle audits. BUSA had called for the UIF to be put under immediate administration due to `systemic dysfunction`, corruption, and ineptitude.

Several of its UIF`s investments in unlisted entities have gone bad and been tainted by corruption. These include its investments in Daybreak Farms, managed by a former UIF employee, in which it invested R800 million; and Bounty Brands, which lost more than R5 billion. 

The latest scheme under scrutiny is a R5 billion `job creation scheme` in which the fund provided a grant to Thuja Capital Fund to acquire stakes in companies, which would then be pressurised to take on more employees. Thuja Capital Fund is owned by Mthunzi Mdwaba, who at the time was the chair of Productivity SA, another state entity under the Department of Labour and Employment. 

`Get-rich-quick scheme`

Minister of Employment and Labour, Thulas Nxesi, who has asked UIF commissioner Teboho Maruping and Director-General of Employment and Labour Thobile Lamati why they should not be suspended over the transaction, is believed to be in favour of their dismissal. Nxesi has handed a report to President Cyril Ramaphosa, who appoints and removes directors-general, and is awaiting his decision. 

Cosatu has described the project as a `get-rich-quick scheme` and called for decisive action against all involved. 

Apart from the corruption allegations, business and labour are angry at the serious dysfunction of the UIF and the lack of action taken to fix it. BUSA`s Nedlac labour market convenor Jonny Goldberg said three letters to Nxesi and Lamati since last November had not received a reply. 

Thousands of workers are still owed Covid-19 TERS payments and payments under the Workers Affected by Unrest (WABU) scheme put in place after the July riots. 

Cosatu said: 

Workers struggle to submit their claims and receive their payments. There are perennial queues at UIF offices across the country where workers wait in vain for days on end to have their claims processed… the issues range from an IT system that is routinely offline, to understaffed offices, overstretched employees, user-unfriendly and confusing forms and applications systems, as well as delinquent employers who pickpocket workers` contributions and fail to hand them over to the UIF.

Goldberg said that due to the constant failure of the UIF systems, when the Covid-19 pandemic began, business had stepped in to develop a parallel IT system free of charge. But the Department of Labour had rejected the offer in favour of keeping their own, and it had never been used. 

The UIF has failed to produce audited financial statements for the past two years. In a letter from Nxesi to the Speaker of Parliament published on Wednesday, the minister requested an extension to provisions under the Public Finance Management Act (PFMA), which calls for annual financial statements to be tabled by the end of September. 

Nxesi said that the 2021/22 financial statements would be submitted at the end of October, while those for 2022/23 would only be ready by the end of June 2024, as the audit had not yet begun. 

The minister listed two primary reasons for the UIF`s failure. First, he said that the UIF and the companies in which it invested and had differing financial years, which made the audit difficult. 

Second, he said that the Generally Recognised Accounting Practice (GRAP) standards required by the PFMA would have `inevitably resulted in numerous audit findings and a poor audit outcome`.

This was particularly the case in auditing the unlisted entities in which the UIF has invested. His department has prepared a technical document for submission to the Treasury, proposing changes to GRAP in auditing its investments.

Let our people be employed in our country`: ANC leaders tout foreign hiring restrictions

Gauteng Premier Panyaza Lesufi is leading the ANC`s push to restrict the employment of foreign nationals in the province. 

• The Gauteng premier is leading the ANC`s push to restrict the employment of foreign nationals in the province as the youth unemployment crisis seems to have defeated the ANC. 

• Panyaza Lesufi and ANC provincial secretary TK Nciza said the time had come for local citizens to be given priority in employment by private businesses. 

• Immigration experts have warned against this political rhetoric, saying it was dangerous and was only used as an excuse to mask the failures of the ANC governance.

Gauteng Premier Panyaza Lesufi wants to restrict the number of foreign nationals employed by businesses in Gauteng to put a dent in worrying unemployment figures. 

Lesufi and Gauteng ANC provincial secretary TK Nciza proposed the plan to restrict how many foreign nationals can be employed, saying it was time for local citizens to be given priority in the country`s economic hub. 

“We are saying there must be a quota on employing locals. Everybody sits and looks to the government for employment. We are calling on the private sector to start employing locals, and we must agree on a quota. We must have a quota, and we will start in Gauteng. It is time. 

`You go to a restaurant, and you hardly come across a South African. I was impressed [by] one restaurant in Durban [where] everyone was South African. We have [a] serious issue of unemployment, and the youth are not working. We are not saying people must be xenophobic, we are saying let`s have a quota and let our people be employed in their own country,` Nciza said on Thursday at the ANC Gauteng press briefing. 

Immigration experts have warned that this political rhetoric so close to elections threatens foreign nationals. 

They said the ANC was relying on right-wing populist messaging to lure support ahead of elections in a context where the party`s track record in governance had failed to produce a strong economy that could enable employment. 

But the ANC provincial leaders dug in, saying South African businesses should employ South Africans. 

`We have a private sector that is not coming to the party. We are calling upon them to start employing South Africans and let`s agree on a quota, and we will engage ...,` Nciza said. 

The rhetoric to target foreign nationals comes months ahead of crucial elections for the ANC, where the party faces losing control of Gauteng. 

It narrowly held onto the province in 2019, and election experts have warned it may not be able to win a majority in 2024. 

University of Johannesburg`s Professor Trevor Ngwane said policies that aimed to restrict the employment of foreigners would likely affect desperate citizens from South Africa`s neighbouring countries of Zimbabwe, Mozambique and Lesotho. 

`The divide-and-rule tactics target our SADC neighbours and goes against President Cyril Ramaphosa`s efforts to create and encourage a free-zone movement around the SADC region.  

`This is the same right-wing, xenophobic sentiment that we have seen around the world in populist speeches. The ANC has failed to create jobs as a ruling party, and now it is trying to find scapegoats, playing to the audience, and fanning sentiments of division and hate against our neighbours,` Ngwane said. 

Sharon Ekambaram, head of the refugee and migrants rights programme at Lawyers for Human Rights, shared similar sentiments, saying that targeting foreigners was an effort to scapegoat the failures of governance. 

`The evidence does not support this rhetoric. It is clear that this is scapegoating by the government after failing to ensure basic service delivery to the people.  

`There is no data about the number of migrants that live in Gauteng, let alone in South Africa. We have no capacity to collect this data, provinces are even struggling to budget for basic services because they have no knowledge of how many live in various provinces,` Ekambaram said. 

`They do not have this data, and instead, they blame foreign nationals for every failure even in the provision of health care.”

Ekambaram said Lawyers for Human Rights had successfully pointed out the unconstitutionality of a Township Development Bill presented to the Gauteng legislature by the ANC. 

The legislation would have barred foreign nationals from establishing businesses in the province`s townships. The Gauteng government has since amended that section of the bill. 

The concerns about foreign nationals in Gauteng have lingered mainly on the issue of illegal mining. 

When launching the ANC`s manifesto review, Ramaphosa said the government had launched an initiative to identify illegal immigrants.

`We continue to have foreign nationals who do not have documents. A programme has been started to examine who among foreign nationals does not have documents, and a number of them are being arrested.

Ramaphosa said:

Those who do not have permits to be in South Africa better know now that South Africans want this country to be occupied by people who have documents or who are citizens of our country.

The rise in the unemployment rate among young people has added to the woes faced by Lesufi and the ANC as the party aims to remain in charge of the province.

Lesufi conducted a massive employment drive in the province to show that the government was doing something about youth unemployment. 

He promised to advertise thousands of jobs this year until the end of the ANC term in government. 

When he launched his job recruitment programme for 8 000 jobs, 1.2 million young people applied. 

He said, in July, that the figures showed how grave the unemployment crisis was.

Pakistani and SA nationals slapped with lengthy jail terms for passport crimes

Home Affairs Minister Aaron Motsoaledi has welcomed the lengthy jail terms meted out to two South Africans and a Pakistani national in separate cases in Durban and Johannesburg, respectively, for passport related crimes. Arfan Ahmed, a Pakistani was arrested in a sting operation involving the Counter Corruption Branch of Home Affairs, the Hawks and the Police Crime Intelligence on 24 March at the Home Affairs office in Krugersdorp.


Pakistani national

Motsoaledi’s spokesperson Siya Qoza said Ahmed was sentenced to eight years by the Brixton Magistrate’s Court for the passports found in his house after his arrest in Krugersdorp.


“The Department awaits his sentencing for his role in the Krugersdorp passport syndicate. Ahmed is a kingpin of a passport syndicate that sought to undermine the country’s laws by fraudulently procuring South African passports for Pakistani nationals, who did not have a legal right to possess South African passports.


“He was working with some corrupt officials of Home Affairs in a network that spanned Gauteng, Limpopo, KwaZulu-Natal, Eastern Cape, Western Cape and Mpumalanga. While the Pakistani is languishing in jail, the 12 corrupt Home Affairs officials who enabled his scheme have already been fired and submitted to the Hawks for criminal investigations,” Qoza said.


Home affairs official

In a separate case, the Durban Magistrate’s Court sentenced Anda Ngozi and Nomthandazo Mboyane to 26 and 24 years respectively for fraud, as well as for contravention of the Identification and immigration Act and Prevention and Combating of Corrupt Activities Act.


“The sentences of the two will run concurrently, practically meaning that Ngozi will spend 10 years while Mboyane will spend eight years [in prison],” Qoza said.


Qoza said the duo were officials of the Department of Home Affairs employed at the office in Queenstown, in the Eastern Cape.


“They used to travel 650 km each way at a time during the night to Home Affairs offices in Commercial Road and in Prospecton in Durban, KwaZulu-Natal, to fraudulently process 52 passports to foreign nationals, mostly from the DRC, who are not legally entitled to them.


“They were paid between R3 000 and R5 000 for each passport. South Africans who were prepared to lend their identities for this nefarious scheme were paid a paltry R500. These were usually young people who were on nyaope,” Qoza said.


The two were arrested in November 2022 after a probe led by the Counter Corruption Branch.

The Durban Magistrate’s Court also ordered that the 52 passports be surrendered to the State


Justice

Motsoaledi said he was extremely pleased the courts were meting out lengthy sentences to those who seek to undermine the integrity of Home Affairs systems.

“I am also happy the collective work of the multidisciplinary law enforcement teams has ensured that these rascals face the full might of the law for their criminal actions.”

Motsoaledi added he was looking forward to the sentencing of more people related to these two cases as the Hawks continued with their investigations.

“Once again, I want to reiterate that we shall stop at nothing in ensuring that all Home Affairs officials who engage in malfeasance face the full might of the law. If you are at Home Affairs and are corrupt, expect our knock at your door.”

Motsoaledi said the actions of corrupt officials, kingpins, South Africans and corrupt foreign nationals have severe consequences for the country.

“Because of this abuse of the passport application system, Home Affairs has drastically changed the processes through which passports are acquired in the country,” Motsoaledi said.