Home Office criticised for profiting from immigration fees as figures show billions in income

In an in-depth article published this week, the Bureau of Investigative Journalism (TBIJ) reported that its analysis found the Government made almost £5 billion in profit from visa, citizenship and immigration-related charges and fees in the previous year.

As TBIJ reported, the UK has the most expensive immigration fees in Europe. It noted that the cost of applying for indefinite leave to remain (ILR) has risen from £155 in 2005 to a current fee of £3,226, an increase of more than 20 times.

Other immigration fees have also risen sharply. TBIJ highlighted that a family visa to join a partner currently costs £2,064, while an adult dependant relative application costs £3,635, before other potential charges. The article included several examples of families facing high costs and, in some cases, taking on debt to pay immigration fees.

One family of four faced a total bill of over £15,000 for settlement. TBIJ stated: "If the Home Office had charged them what it costs to process the applications, they would have paid £1,240. ILR applications are among the most profitable for the Home Office: only £310 of the £3,226 charge covers the actual administrative cost of processing the application."

A Home Office spokesperson told TBIJ that the Government was not 'profiting' from immigration fees, as the money is put towards the wider migration and borders system, reducing the burden on taxpayers.

The National Audit Office (NAO) reported last year that the Home Office had total income of £7.3 billion in 2024–25 against expenditure of £27.8 billion. Income in the year increased by £1.4 billion (25%) compared to the year 2023-24. The NAO income figure covers the department as a whole and does not separately identify immigration income.

A breakdown of the figures can be found in the Home Office annual report and accounts.

According to the latest annual report and accounts published in July and covering the period 1 April 2025 to 31 March 2026, the Home Office generated £3.57 billion in income from visas and immigration, up from £2.98 billion in the previous year. The Home Office calculated that the £3.57 billion in income in 2025-26 generated a surplus of £2.5 billion.

The Immigration Skills Charge generated £594 million in income in 2025-26, though the Home Office notes this money is passed to HM Treasury rather than retained by the Home Office. Total income from immigration civil penalties was £111 million.

In addition, income from the Immigration Health Surcharge (IHS) in the year 2025-26 was £2.32 billion, a slight decrease from the £2.42 billion raised the year 2024-25.

The Home Office notes: "Income generated from the IHS is split between the Department for Health and Social Care and the devolved governments for healthcare spending using the Barnett formula and is transferred via the Supply Estimate process."

Rumbidzai Bvunzawabaya, a solicitor and CEO of Tulia, a charity that supports migrant workers, told TBIJ: "I think the government knows how desperate people are to stay in this country, so they're taking advantage. And what makes it worse is that then they always scapegoat migrants and say they're just coming in to freeload."

Matteo Besana, head of policy and advocacy at Reunite Families UK, told TBIJ: "[It is] a national scandal that the Home Office has been allowed to profiteer for as long as it has. The current visa system is a form of double taxation that deliberately keeps people and children in poverty. No government should be able to justify this."