Thousands of small businesses across the UK, including grocery stores, barber shops, taxi operators, vape shops and car washes, remain licensed to sponsor overseas workers despite tighter Skilled Worker visa rules introduced last year, according to a report by BBC.
The investigation found that more than 1,900 such businesses continue to appear on the UK Home Office's register of licensed sponsors, even though immigration reforms introduced in July 2025 largely restricted new Skilled Worker visas to graduate-level occupations with a minimum salary of £41,700.
Why thousands of small businesses remain on the sponsor register
According to BBC, the Home Office sponsor register includes more than 1,500 grocery and convenience stores, around 150 taxi operators, more than 100 barber shops, and dozens of vape shops and car washes that are licensed to sponsor overseas workers.
More than 100 of these businesses were added to the register after the July 2025 immigration changes. However, the Home Office indicated that some may have applied before the new rules took effect, while others may have retained their licenses because they continue to sponsor workers who were already in the UK under earlier rules.
{{/usCountry}}More than 100 of these businesses were added to the register after the July 2025 immigration changes. However, the Home Office indicated that some may have applied before the new rules took effect, while others may have retained their licenses because they continue to sponsor workers who were already in the UK under earlier rules.
{{/usCountry}}The Home Office stressed that appearing on the sponsor register does not automatically mean a business can recruit overseas workers for any role. Every visa application must still satisfy the government's salary and skill requirements.
Sixty businesses listed on the register had been fined for employing illegal workers between April 2024 and December 2025, receiving combined penalties of £2.5 million, BBC reported.
Government says scrutiny has increased
The findings come after Home Secretary Shabana Mahmood ordered an urgent review into the presence of vape shops, barber shops and car washes on the Skilled Worker sponsor register amid concerns over the potential misuse of the system.
A Home Office spokesperson told the BBC that the government had raised the Skilled Worker threshold and removed more than 100 occupations from eligibility for new visas.
Officials also said businesses found abusing the sponsorship system would have their sponsor licenses revoked.
According to figures cited by BBC, the UK granted 68,067 Skilled Worker visas in the year ending March 2026, down 30% from the previous year. Information technology professionals remained the largest group of successful applicants, while approvals fell sharply in food preparation and hospitality occupations after those roles were removed from the eligible occupation list.
Why the findings matter for Indians
The findings are particularly relevant for Indian professionals, who remain one of the largest groups using the UK's work visa system. UK Home Office statistics show Indian nationals continue to account for the highest number of Skilled Worker visa grants and extensions among all nationalities.