How Recent Changes to the UK Immigration Health Surcharge Affect Hong Kong BNO Visa Applicants

From 6 February 2025, the UK Immigration Health Surcharge (IHS) increased from GBP 776 per year to GBP 1,035 per year for most visa applicants, including those applying under the Hong Kong British National (Overseas) visa route. This represents a 33% increase in upfront healthcare costs for a standard five-year BNO visa pathway. For a family of four applying for BNO visas simultaneously, the total IHS payment now exceeds GBP 20,700 — a sum payable in full at the point of application, before any visa is granted. The UK Home Office confirmed this change in a written ministerial statement on 13 November 2024, citing the need to fund pay awards for National Health Service staff. This article explains the mechanics of the IHS increase, its direct impact on BNO visa application costs, and the procedural adjustments Hong Kong applicants must make when calculating total visa fees. It also addresses the refund rules, the interaction with the BNO visa’s five-year residence pathway, and the cost comparison with other UK visa routes.

The IHS Increase: What Changed and Why

The Immigration Health Surcharge is a mandatory fee payable by most non-UK nationals applying for a visa of more than six months’ duration. It grants access to the National Health Service on the same basis as a permanent UK resident. The Home Office sets the rate by statutory instrument under section 38 of the Immigration Act 2014.

The New Rate Structure

From 6 February 2025, the standard IHS rate for adult applicants is GBP 1,035 per year. The reduced rate for children under 18 remains at GBP 776 per year. The previous standard rate, in place since 2020, was GBP 776 per year for adults and GBP 470 for children. The Home Office applies a half-year rule: any visa period shorter than a full year is rounded up to the next full year for IHS calculation purposes.

The Rationale Cited by the Home Office

The Home Office’s written ministerial statement of 13 November 2024 stated that the increase “reflects the need to ensure the surcharge continues to provide a fair contribution to the cost of the NHS.” The statement specifically linked the increase to the 2024 NHS pay award settlement. The Home Office estimated the increase would generate an additional GBP 1.5 billion in annual revenue for the NHS.

The Timing and Transitional Provisions

The increase applies to all applications submitted on or after 6 February 2025. Applications submitted before that date are assessed at the old rates, even if the visa is granted after the change. The Home Office confirmed no transitional grace period for applicants who had already paid the lower rate but had not yet received a decision. Applicants who withdraw an application after the change date and re-submit must pay the new rate.

Direct Impact on BNO Visa Application Costs

The BNO visa route requires applicants to pay the IHS for the full five-year duration of the visa in a single upfront payment. The Home Office does not permit instalment payments. This means the increase has a direct, immediate effect on the total cost of a BNO visa application.

Cost Calculation for a Single Adult Applicant

For a single adult BNO visa applicant, the IHS component increases from GBP 3,880 (5 years × GBP 776) to GBP 5,175 (5 years × GBP 1,035). The total visa fee of GBP 180 per person remains unchanged. The application cost therefore rises from GBP 4,060 to GBP 5,355 — a 32% increase. This figure excludes the biometric enrolment fee and any translation or document certification costs.

Cost Calculation for a Family of Four

The standard family scenario involves two adults and two children under 18. Under the old rates, the IHS total was GBP 3,880 × 2 (adults) + GBP 470 × 2 (children) = GBP 8,700. Under the new rates, the IHS total is GBP 5,175 × 2 (adults) + GBP 776 × 2 (children) = GBP 11,902. The total visa fees of GBP 180 × 4 = GBP 720 remain constant. The total application cost rises from approximately GBP 9,420 to GBP 12,622. This is a 34% increase.

The Five-Year Residence Requirement

The BNO visa grants entry clearance for 30 months, with a further extension for 30 months, totalling five years. The IHS is paid for the full five years at the initial application stage. If an applicant switches from a different visa category (e.g., a Tier 2 visa) to a BNO visa, the IHS for the remaining period of the BNO visa is calculated from the date of grant. The Home Office does not refund the IHS paid under the previous visa for overlapping periods.

Refund Rules and Practical Considerations

The Home Office operates a refund system for the IHS, but the rules are narrow and strictly applied. Applicants should understand these rules before paying the surcharge.

Full Refund Scenarios

A full refund of the IHS is payable in three circumstances: (1) the visa application is refused, (2) the application is withdrawn before a decision is made, or (3) the application is granted but for a shorter period than applied for. In the third scenario, the Home Office refunds the IHS for the unused years. The refund is processed automatically to the payment method used. The Home Office states a processing time of up to 90 working days.

Partial Refund Scenarios

A partial refund is payable if the applicant leaves the UK permanently before the visa expires. The applicant must apply for a refund using the Home Office’s online form. The refund is calculated from the date the applicant leaves the UK, not the date of application. The Home Office requires evidence of departure, such as a boarding pass or an exit stamp. No refund is payable for periods of temporary absence.

No Refund Scenarios

No refund is payable if the applicant switches to a different visa category within the UK. The IHS paid for the BNO visa is not transferable. No refund is payable if the applicant simply decides not to travel to the UK after the visa is granted. The Home Office treats this as a voluntary decision. No refund is payable if the applicant’s visa is curtailed due to a breach of conditions.

Comparison with Other UK Visa Routes

The IHS increase applies across all visa categories, but the impact varies by route duration and fee structure.

BNO Visa vs. Skilled Worker Visa

The Skilled Worker visa is typically granted for three years, with an IHS payment of GBP 3,105 (3 × GBP 1,035) for a single adult. The BNO visa’s five-year duration means the IHS burden is proportionally higher. The Skilled Worker visa also requires a separate Immigration Skills Charge payable by the employer, which does not apply to the BNO route. For a Hong Kong applicant comparing routes, the BNO visa’s lower base fee (GBP 180 vs. GBP 719 for a three-year Skilled Worker visa) partially offsets the higher IHS.

BNO Visa vs. Student Visa

A Student visa for a three-year undergraduate course requires an IHS payment of GBP 3,105. The base visa fee is GBP 490. The total cost for a Hong Kong student is approximately GBP 3,595. This is lower than the BNO visa total of GBP 5,355 for a single adult. However, the Student visa does not lead to settlement without switching to a work route. The BNO visa offers a direct pathway to indefinite leave to remain after five years.

BNO Visa vs. Family Visa

A Family visa (e.g., for a spouse or partner) is granted for 30 months initially, with an IHS payment of GBP 2,588 (2.5 years rounded up to 3 years × GBP 1,035). The base visa fee is GBP 1,538. The total cost for a single adult is approximately GBP 4,126. The Family visa requires a further application for extension at 30 months, with an additional IHS payment. Over five years, the total IHS for a Family visa is GBP 5,175 — the same as the BNO visa — but the visa fees are higher.

Actionable Takeaways

1. Calculate the total application cost using the new IHS rates of GBP 1,035 per adult per year and GBP 776 per child per year before submitting a BNO visa application from 6 February 2025.
2. Submit the BNO visa application before 6 February 2025 if the lower IHS rate of GBP 776 per adult per year is still applicable to the applicant’s timeline.
3. Ensure the full IHS payment of GBP 5,175 per adult for a five-year BNO visa is available in the applicant’s bank account at the point of application, as the Home Office does not permit instalments.
4. Understand that no refund of the IHS is available if the applicant decides not to travel to the UK after the visa is granted, or if the applicant switches to another visa category within the UK.
5. Factor in the IHS increase when comparing the BNO visa route with alternative UK visa categories such as the Skilled Worker visa or the Student visa, as the five-year duration of the BNO visa makes the IHS component proportionally higher.

This does not constitute legal advice. Consult a solicitor for your specific case.