The UK’s care sector is under growing scrutiny, with enforcement against sponsor licence holders reaching unprecedented levels. In 2024 alone, suspensions have risen by 136% and revocations by 263%, with care providers likely the most affected. With compliance failures – however small – now carrying serious consequences, it has never been more critical for care sector employers to ensure they are meeting their sponsorship obligations.
The UK’s adult social care sector is facing a staffing crisis, with a growing reliance on migrant workers to fill essential roles. However, recent reports have revealed widespread exploitation, prompting serious concerns about how care workers are recruited, treated, and supported once they arrive in the UK.
Martin Green, Chief Executive of Care England, has criticised local authority commissioning practices, arguing that by awarding contracts to providers offering the lowest costs, some councils are inadvertently enabling unscrupulous employment practices that leave migrant care workers vulnerable to exploitation. While this viewpoint is contested, it highlights the growing debate around how care provision is funded and the impact this has on workers' rights.
Migrant Workers and the Care Sector
Migrant workers play a crucial role in sustaining the UK’s care sector, particularly given the chronic shortage of domestic staff. In the 2023/24 financial year, around a third of all new startersin adult social care were recruited from overseas, according to Skills for Care.
However, many of these workers arrive in the UK under precarious conditions, having paid significant fees – sometimes as much as £20,000 to secure a job. A recent survey by Unison revealed that nearly a quarter of migrant care workers had been charged illegal recruitment fees, leaving them financially trapped and vulnerable to mistreatment.
Exploitation and Poor Working Conditions
The reality for many migrant care workers is far from what they were promised. Some find themselves in overcrowded, substandard housing, with reports of workers forced to share beds or even sleep rough due to a lack of affordable accommodation. Others face exploitative working conditions, including excessive hours, underpayment, or even wage deductions that leave them unable to meet their basic living costs.
There is also a disturbing pattern of workplace discrimination. More than 800 migrant care workers surveyed reported experiencing racism on the job, highlighting deep-seated inequalities within the sector.
The Role of Local Authorities
A significant factor contributing to these problems is the way local authorities commission care services. In an effort to cut costs, many contracts are awarded to the lowest bidder, often at rates that make it impossible for providers to operate ethically and remain financially viable.
Tim Wilson, a director at the Homecare Association and Surrey Care Association, has pointed out that ethical care providers who pay their staff fairly and comply with legal employment standards are often undercut by less scrupulous operators. This creates an uneven playing field, where those willing to exploit workers gain a financial advantage over responsible employers.
However, many experts believe this does not go far enough. Christina McAnea, General Secretary of Unison, has called for an overhaul of the visa sponsorship system to prevent exploitation at its root. Strengthening oversight, increasing accountability, and ensuring local authorities prioritise ethical care providers in their commissioning decisions will be key to tackling the problem.
At the same time, enforcement action is intensifying at an unprecedented rate. In 2024 alone, there has so far been a 136% increase in skilled worker sponsor licence suspensions and a 263% rise in revocations compared to the previous full year. With another three months of data yet to be reported, it is clear that the Home Office is prioritising stricter compliance action, and this trend is set to continue in 2025.
With over 2,500 enforcement actions already recorded in 2024 and Q4 figures yet to be reported, it is highly likely that the vast majority of sponsors impacted operate in the care sector. Given the sector’s heavy reliance on overseas workers and the increased focus on compliance, care providers are at the highest risk of enforcement action, even in cases where non-compliance is unintentional.
These figures highlight a significant shift in how the Home Office is enforcing sponsorship obligations. Even minor administrative errors or failures in record-keeping and reporting can now lead to serious consequences, putting both businesses and their sponsored employees at risk.
Need for Reform
The UK’s social care sector depends on migrant workers, yet the system currently in place is failing to protect them. Without urgent reform, exploitation will continue, with devastating consequences for workers and those in need of care.
It is essential that local authorities take greater responsibility when commissioning services, ensuring that contracts are awarded to providers who treat their staff fairly. At the same time, stronger regulation and enforcement must be put in place to prevent unscrupulous operators from profiting at the expense of vulnerable workers.
Ensuring Compliance and Protecting Your Sponsor Licence
For care providers relying on overseas workers, ensuring compliance with Home Office requirements is now more important than ever. The risks of suspension or revocation have never been higher, and failing to meet sponsorship obligations can have serious implications for both the business and its employees.
Howes Percival can help care sector employers by providing:
Sponsor Licence Health Checks – Identifying potential compliance issues before they become a problem.
Compliance & Right-to-Work Training – Ensuring your HR teams and managers understand their legal obligations.
Visa Eligibility Assessments & Application Support – Assisting with Skilled Worker visa applications to ensure compliance and minimise risks.
Sponsorship Strategy & Licence Applications – Helping employers secure and maintain a sponsor licence with a tailored approach.
Our Immigration team is here to provide expert guidance on sponsorship compliance, visa applications, and risk management.
Get in touch to discuss how we can help you safeguard your workforce and ensure your organisation remains protected.
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