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Sector Intelligence Update: Feb 2026

The Home Office Crackdown on
Care Sponsor Licences

Official figures confirm a doubling of revocations. The era of "light-touch" regulation is over. Intelligence-led monitoring is now removing licences at record speed.

Revocations: Adult Social Care & Service Sectors

Source: Home Office Transparency Data (July 2024 - June 2025)

What is Driving the Wave of Revocations?

1. The "Prestwick" Precedent

The Court of Appeal ruling in Prestwick Care Ltd v SSHD [2025] confirmed that the Home Office does not need to consider the impact on staffing or service users before revoking a licence.

2. Intelligence-Led Monitoring

The Home Office no longer relies on site visits. They now use data-matching across HMRC/PAYE and the Sponsor Management System (SMS) to detect discrepancies remotely.

3. Zero Tolerance

"Technical" breaches like late reporting or weak absence monitoring—once minor issues—now lead to immediate suspension.

THE 4 FATAL COMPLIANCE FAILURES

Why Care Licences Are Lost

1

Salary & Hours Discrepancies

Salaries falling below thresholds due to deductions, or hours worked not matching the CoS.

2

Genuine Vacancy Failure

Roles described on the CoS do not exist in practice, or resemble "labour supply" to third parties.

3

Reporting Lag

Failure to report changes in job duties, salary, or work location within 10 working days.

4

Worker Protection Breaches

Recouping Immigration Skills Charge or CoS fees from workers (Strictly prohibited since Dec 2024).

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We don’t provide immigration advice but connect you to our panel of solicitors for immigration advice. The information above is only for informational purposes and shouldn’t be construed as immigration advice.

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