The Care Sector is Under the Microscope. Is Your Licence Secure?
The UK care sector is facing a perfect storm. Chronic staff shortages, immense operational pressures, and a heavy reliance on international recruitment have placed care providers under intense scrutiny from the Home Office. Following the expansion of the Health and Care Worker visa, the number of sponsored workers in the sector has surged. In response, UKVI has dramatically increased its compliance and enforcement activity, with care homes being a primary target. Care home sponsor licence compliance is in prime focus.
In the 12 months to June 2025, a record number of sponsor licences were suspended or revoked, with a significant proportion of these being in the care sector. For care home owners and managers, holding a sponsor licence has become both an operational necessity and a major compliance risk. This article explains the unique challenges the care sector faces and the specific compliance failures that cause most care home licences to fail Home Office audits.
Why is the Care Sector a High-Risk Area for UKVI?
The Home Office views the care sector as high-risk for several key reasons:
- High Volume of Sponsored Workers: The sector’s reliance on the Health and Care Worker visa means it is one of the largest users of the sponsorship system.
- Vulnerable Workforce: Care workers can be vulnerable to exploitation, and the Home Office is tasked with preventing this.
- Complex Working Patterns: Shift work, variable hours, and the use of agency staff make compliance with salary and working hour rules more challenging.
- High Staff Turnover: High turnover rates increase the administrative burden of sponsorship, leading to a greater likelihood of errors in record-keeping and reporting.
These factors have combined to create an environment where even well-meaning providers can easily fall foul of the complex sponsor duties.
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The Top 5 Compliance Failures for Care Homes
While the general sponsor duties apply to all businesses, our experience with care sector clients shows that audits consistently reveal a specific set of failures.
| Failure Point | Why it Happens in Care Homes |
|---|---|
| 1. Salary & Working Hour Discrepancies | Complex rota systems, unpaid breaks, and variable shift patterns often lead to sponsored workers being paid less than the salary stated on their CoS, especially when calculated on an hourly basis. |
| 2. Inadequate Absence Monitoring | With high staff numbers and shift-based work, many providers lack a robust, centralised system for accurately tracking sickness, unauthorised absences, and annual leave, leading to missed SMS reports. |
| 3. Defective Right to Work Checks | High staff turnover and urgent recruitment needs can lead to corners being cut. Checks are often missed, performed incorrectly, or not conducted for all staff (including non-sponsored workers). |
| 4. Role Genuineness & Skill Level | Inspectors often find that a worker sponsored as a ‘Senior Care Assistant’ (a role eligible for sponsorship) is, in practice, performing the duties of a ‘Care Assistant’ (a role not eligible for sponsorship before its inclusion on the shortage occupation list). |
| 5. CQC and UKVI Inconsistencies | The Home Office now cross-references data with other government agencies. If information you have provided to the Care Quality Commission (CQC) (for example, regarding staffing levels or management) contradicts the information you have provided to UKVI, this will be treated as a major red flag. |
The CQC-UKVI Connection: A New Layer of Scrutiny
A critical and often overlooked area of risk is the growing data-sharing relationship between the Home Office and the CQC. An adverse CQC inspection report that highlights issues with staffing, management, or record-keeping can now directly trigger a UKVI compliance audit. Inspectors will look for inconsistencies between your CQC reports and your sponsorship records. For example, if your CQC report raises concerns about inadequate staffing levels, UKVI will question why you are not using your sponsor licence to fill these vacancies.
How to Protect Your Care Home’s Sponsor Licence
Given the intense scrutiny, a proactive approach to compliance is essential for survival.
- Audit Your Rotas: Regularly audit your payroll and rota systems to ensure that all sponsored workers are consistently meeting the salary and working hour requirements of their CoS.
- Centralise HR Functions: Avoid delegating key compliance tasks like Right to Work checks and SMS reporting to individual home managers. Centralise these functions under a trained and accountable HR team.
- Train Your Managers: Ensure that home managers understand the critical importance of accurate absence recording and immediately reporting any issues to the central HR team.
- Align Your CQC and UKVI Reporting: Ensure that the information you provide to all regulatory bodies is consistent. Your Authorising Officer should have oversight of both CQC and UKVI compliance.
In Conclusion
For care homes, a sponsor licence is a lifeline, but it is also a significant liability. The Home Office’s targeted enforcement action means that you must be audit-ready at all times. By understanding the specific risks your sector faces and implementing robust, centralised compliance systems, you can protect your licence and ensure you can continue to provide essential care.
If your sponsor licence is at risk, speak to a compliance adviser today. Delays cost licences.
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Author
Tochi Okoronkwo
Tochi is an OISC certified immigration adviser with expert knowledge of UK Immigration Law and a genuine desire to make your immigration journey as smooth and stress-free as possible.
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