Does the Home Office need to consider the impact on a care provider when revoking its sponsor licence?
No, the Home Office will not consider what impact it will have on a care provider when making the decision to revoke its sponsor licence. The Home Office will make the decision based on the specific breach by the care provider of its sponsor duties.
When obtaining a sponsor licence to recruit workers from overseas, care providers agree to comply with the Home Office’s duties for sponsors and need to be aware that failing to do so may result in the Home Office revoking its sponsor licence. A list of reasons for revoking a sponsor licence is set out in the sponsor guidance. For the majority of these reasons, if the Home Office concludes that the breach has taken place then the care provider “will” or “will normally” lose its licence. Without a sponsor licence, the care provider would be unable to sponsor overseas workers.
Recent cases between the Home Office and care providers
In the cases of Prestwick Care v Secretary of State for the Home Department and Secretary of State for the Home Department v Supporting Care Limited, two care providers argued that the Home Office was under a duty to consider the impact revoking a sponsor licence would have on the care provider, its employees, service users and the wider community. In the decision from the Court of Appeal on 11 March 2025, they held that this is not the case.
The Court of Appeal reminded care providers that a sponsor licence is “a privilege not a right” and highlighted the “high level of trust placed in the sponsor”. They said that when a care provider chooses to apply for a licence, they will be bound by the “strict terms contained in the Guidance” which do not include the impact of revocation on the business. The Court of Appeal also made it clear that the Home Office will not hesitate to take action, even in cases of an isolated breach of duty.
Takeaways:
Care providers often rely on a sponsor licence and the employment of migrant workers to ensure they have enough staff to look after their service users. The repercussions of failing a Home Office compliance visit and losing the sponsor licence could be severe. Care providers need to ensure that their key personnel are familiar with the compliance duties and the business is compliant and ready for a potential compliance visit.
