We wrote about the Scale-Up visa route when it was first introduced in 2022; we were not convinced as to how useful it would be. Four years later, we are seeing our prediction come true.
What is the Scale-up route
Firstly, let’s take a brief look at what the Scale-Up route is about. This route is for fast growing businesses to sponsor foreign nationals for 6 months. A company has to apply for a Sponsor Licence to be eligible to sponsor individuals. In order to secure the Licence they have to evidence the following:
- That they have an annualised growth of at least 20% for the 3-year period before the Sponsor Licence application based on either employment (staff count) or turnover; and
- have had a minimum of 10 employees at the start of the 3-year period
If a company cannot meet the above requirements because their HMRC history is not long enough, there is another option: the endorsing body pathway. A company can get an endorsement from Home Office-approved endorsing bodies. This route has extensive conditions but some important requirements are as follows:
- Must have a minimum of 10 employees who pay income tax and national insurance through a PAYE scheme operated by you
- be registered for VAT
- be solvent and trading in the UK
- have an HMRC footprint of less than 4 years
- be able to demonstrate a potential growth rate consistent with the requirements of the Scale-up route and be reasonably expected to meet the Home Office definition of a qualifying Scale-up sponsor under the standard pathway within the next 4 years
There are even more stringent requirements for the endorsing body pathway. If you would like to know more, please reach out to us.
Is anyone using this route?
As you can see the standard requirements do not seem too complex. However you have to ask yourself, how many businesses are really growing 20% year on year? As of 13th February 2026, there are just 85 companies holding a Scale-up worker Sponsor Licence. Not sure what to think of that number? There are currently about 140,000 companies holding some form of sponsor licence e.g. Skilled worker, Global Business Mobility: Senior or Specialist Worker (formerly Intra-Company Transfer). To put it simply, companies are not utilising this route at all.
Part of the issue is not just the requirement to get the licence but how long the licence lasts. Most licenced routes such as those mentioned above do not have an expiry date but the Scale-up route is for 4 years and can only be held once. Also, those on the Scale-up visa itself are only required to be sponsored for 6 months. After the 6 months, they are free to work for any other company without needing to be sponsored or even informing the Home Office.
It is obvious from the above that the route does not really benefit businesses who (you would think) would want to ensure employees remain with the company for a longer time than 6 months before they become free to work for another company. It is a significant investment to secure a sponsor licence and to sponsor an individual, and to potentially lose them after 6 months does not make financial sense. We envisage that this route will either be scrapped or face significant changes in the near future.
Jules Motcho email:jmotcho@redfernlegal.com
