On 19 September 2025, the U.S. administration made a dramatic shift in its immigration policy: new H-1B visa applications will now cost US$100,000 per year, a huge increase from prior fees. The change, aimed at reducing foreign-skilled labour inflows and protecting domestic wages, applies only to new applicants; existing H-1B visa holders renewing or re-entering do not face this fee.
For the United Kingdom, this is both a challenge to watch and an opportunity to seize.
What This Means for Britain
1. More Indian and Global Talent Eyes UK
India accounts for over 70 per cent of U.S. H-1B approvals. With the U.S. making it much more expensive to come under the H-1B program, many Indian professionals will rethink those plans. That opens up a window for the UK: via the Skilled Worker visa, Global Talent visa, and bilateral migration or mobility deals, British policy makers now have a comparative advantage.
The UK has already been signalling its intention to attract more Indian professionals under the Global Talent scheme, especially in sectors like technology, science, and innovation.
2. UK-India Mobility Deals Look More Valuable
Recently, the UK and India finalised a trade and mobility deal that eases certain restrictions for Indian professionals coming to the UK temporarily. One part of that is the “Double Contributions Convention,” which allows Indian workers seconded here by Indian-based employers to avoid UK National Insurance contributions for up to three years, continuing their contributions in India instead. This reduces the effective cost of working in the UK under certain arrangements.
Such agreements become far more appealing when compared with the steep cost of the U.S. H-1B route.
3. Outsourcing & Remote Work Become More Attractive
If U.S. firms decide they can no longer afford bringing in foreign talent due to the new visa costs, they will look for talent in situ, or outsource more of their work. India is well-positioned to pick up more of that business.
This could strengthen UK-India business ties: British companies contracting with Indian vendors, creating R&D or innovation partnerships, or embedding remote teams, will become more mainstream.
But Not All Tailwinds
Policy & Regulatory Hurdles at Home
While the UK wants more skilled immigration, its own reforms may dampen some of the gains. The “Restoring Control over the Immigration System” White Paper proposes raising salary thresholds, stricter rules, and more selective systems for non-UK nationals. These could limit the effectiveness of any pull effect from U.S. fee hikes.
Competition & Settlement Clarity
Other countries will also try to capitalise: Canada, Australia, parts of Europe. The UK must maintain visa routes that are not only attractive, but also stable (paths to settlement, dependents, etc.), so talent doesn’t drift elsewhere.
Also, Indian professionals may still prefer the U.S. for its market size or opportunities in certain sectors; UK must offer something competitive in terms of research, funding, quality of life, compensation.
Strategic Moves for UK to Maximise Benefit
- Strengthen and simplify the Global Talent visa: reduce red-tape, ensure fast-track routes, make endorsement processes more transparent.
- Expand and deepen mobility / migration agreements with India: more intra-company transfers, clear provisions around taxation, social contributions, recognition of professional qualifications.
- Invest in remote work & innovation infrastructure so companies can easily build cross-border / hybrid teams. Legal / data / IP frameworks must be solid if remote work across borders is to expand.
- Promote UK as hub for higher-end roles: leadership, deep tech, AI, research, biotech. Where U.S. becomes too expensive, the opportunity will be for countries that can host high value work.
Conclusion
The U.S. H-1B fee hike isn’t just about immigration—it’s about drawing a boundary around one of the world’s magnet zones for talent. For the UK, this is a pivot point. If policy, industry and academia align, Britain could become an even more attractive destination for those priced out of the U.S.
But success depends on whether the UK can stay competitive: in visa cost and clarity, in quality of life, and in offering roles that matter. Because when America builds a barrier, someone else gets the rise.
Key Data & Facts
- India accounted for over 70 per cent of H-1B visa approvals in recent years.
- The new U.S. policy imposes a US$100,000/year fee on new H-1B applicants (renewals/existing holders are exempt).
- UK-India trade/mobility deals include a Double Contributions Convention: Indian workers seconded here by Indian-based firms may be exempt from UK National Insurance for up to three years, continuing social contribution in India.
- UK is already increasing its attraction of Indian professionals via the Global Talent visa, especially in tech, finance, academia.