Sponsor Licence Ratings: A-Rating, B-Rating and Action Plans
Most newly granted Worker and Temporary Worker Sponsor Licences receive an A-rating — the Home Office's assessment of the sponsor's ability to comply with its duties and act appropriately within the sponsorship system. Where it identifies relatively minor compliance failures it considers capable of correction, the Home Office may downgrade an A-rated licence to B-rating and require a paid sponsorship action plan. More serious concerns can instead lead directly to suspension or revocation.
On this page
- What is a rating?
- A-rating meaning
- When can it downgrade?
- Before downgrade
- When B-rating takes effect
- What B-rating means
- Existing workers
- Action plans
- How long it lasts
- Action-plan fee
- Options after B-rating
- End of the plan
- Repeat B-rating limit
- Effect on CoS
- Routes & branches
- Provisional rating
- B-rating vs suspension/revocation
- Responding to a downgrade
- Rating Response Guide
- How ENS can assist
- FAQs
In brief
- Most new Worker and Temporary Worker licences start A-rated, which lets a sponsor assign Certificates of Sponsorship.
- The Home Office can downgrade a licence to B-rating where there are compliance concerns.
- A B-rated sponsor must follow a time-limited sponsorship action plan to return to A-rating, with restrictions in the meantime.
- Existing sponsored workers can usually continue while the plan runs — the guide explains the process.
What is a Sponsor Licence rating?
A rating is part of ongoing Sponsor Licence compliance — not simply the result of your application. For sponsored work routes (other than the specific UK Expansion Worker exception), Sponsor Licences are rated either A or B; the rating appears on the published register of licensed sponsors; a newly granted licence is normally given an A-rating; and the Home Office continues to assess the rating over the life of the licence according to the sponsor's ability to comply with its duties and behave appropriately within the sponsorship system.
A-rated
Normal Sponsor Licence status following grant.
B-rated
Transitional compliance status requiring a sponsorship action plan.
Provisional
Special rating applicable only in specified UK Expansion Worker circumstances.
A Sponsor Licence rating can change after the licence has been granted. The Home Office continues to assess sponsors against their ongoing duties and can downgrade a licence where the circumstances justify compliance action.
What does an A-rated Sponsor Licence mean?
An A-rating is normally awarded when a Sponsor Licence is first granted because the Home Office is satisfied that the organisation has systems capable of supporting its sponsor duties and can be trusted to behave appropriately as a licensed sponsor. The Home Office states it won't normally grant a licence unless the organisation is capable of achieving A-rating — subject to the UK Expansion Worker Provisional-rating exception.
A-rating is not permanent accreditation. Sponsors must continue to meet their duties after grant, and the Home Office can reassess the licence where compliance concerns arise. An A-rating is not "Home Office approved as compliant" or a guarantee against future compliance action.
When can a Sponsor Licence be downgraded to B-rating?
The Home Office may downgrade a licence from A-rating to B-rating where, for example, the sponsor doesn't have the necessary processes in place to comply with its duties, or fails to provide information it holds when the Home Office requests it. Downgrading is generally used for relatively minor breaches the Home Office believes can be corrected through a sponsorship action plan. Where concerns are more serious, it may instead suspend or revoke the licence. Compliance-check guidance takes the same approach — minor, correctable breaches are usually dealt with through downgrade and a time-limited action plan, while significant or systematic failings may justify suspension or revocation.
Downgrading is not the only possible response to non-compliance. The Home Office can suspend or revoke a Sponsor Licence without first giving the organisation a B-rating where the circumstances justify more serious action.
More serious action: suspension · revocation.
What happens before the Home Office downgrades a licence?
Where the Home Office is considering downgrade, it writes to the sponsor explaining the proposed action and the reasons; the sponsor is given a period to respond in writing; written representations and evidence can be submitted; there's no oral hearing under this process; if new evidence arises, the Home Office gives a further opportunity to respond to it; and after considering the response it communicates its decision in writing.
- The current guidance gives the sponsor 20 working days from the date of the Home Office letter (current rule as at May 2026 — confirm against the latest sponsor guidance) to respond to a proposed downgrade. The Home Office may extend that period where satisfied that exceptional circumstances justify it.
- If new evidence emerges during consideration, a further 20 working days is currently provided to respond to the new evidence.
- The Home Office will normally notify the sponsor of its decision within 20 working days of receiving the response — a target, not an unconditional guarantee.
A proposed downgrade letter requires active review. If the sponsor doesn't respond within the allowed period, the Home Office will proceed with the action it considers appropriate based on the information available.
This is an administrative Home Office compliance process. ENS can advise and assist with reviewing the downgrade allegations, preparing written representations, organising supporting evidence and responding to Home Office correspondence — this is not a tribunal appeal. Get help reviewing a Home Office letter →
When does B-rating take effect?
Where the Home Office decides to downgrade the sponsor, the decision is communicated in writing and the downgrade takes effect from the date of the decision letter.
The rating changes on the decision date. Employers should review current recruitment and sponsorship activity immediately when a B-rating decision is received.
What does B-rating mean for an employer?
A B-rated sponsor must enter into and comply with a sponsorship action plan; must pay the applicable action-plan fee; cannot sponsor new workers until A-rating has been restored; loses any previously granted automatic facility for replacing the Authorising Officer or Key Contact and adding new Level 1 Users; and faces revocation if it fails to comply with the plan or make the required improvements within the relevant period. During the action-plan period it also cannot add branches to its licence or add a new sponsorship route.
New sponsorship paused
No CoS for new workers while B-rated.
Action plan required
The sponsor must correct specified compliance issues.
Licence changes restricted
No adding branches or new routes during the action plan.
Existing sponsorship continues, subject to the rules
Certain existing sponsored workers may still be supported for eligible extension applications.
B-rating does not stop all CoS activity. The guidance permits limited CoS assignment for a worker the organisation was already sponsoring before downgrade, where that worker needs and is eligible for permission to stay — see below.
Can a B-rated sponsor continue sponsoring existing workers?
During the action plan, the sponsor cannot assign a CoS to a new worker, but it may assign a CoS to a worker it was already sponsoring under the Worker or Temporary Worker routes before downgrade, where that worker requires and is eligible to apply for permission to stay. The Home Office determines how many CoS the sponsor can have for those extension applications during the action-plan period. Outside Scale-up and Seasonal Worker, this continuing-worker facility applies where the worker is applying from within the UK, it's the same route as their last grant, the sponsor assigned the CoS that led to their previous permission, and the sponsor continues to sponsor them.
Route exception. Scale-up Worker and Seasonal Worker sponsorship requires an A-rated sponsor to assign a CoS — the continuing-worker facility above does not apply to those routes.
→ Certificates of Sponsorship · Assigning a CoS
What is a sponsorship action plan?
A B-rating is a transitional rating. A B-rated sponsor must improve its performance sufficiently to regain A-rating within the action-plan period. The action plan specifies the improvements the organisation must make. Examples the Home Office gives include improving record keeping, improving control over staff who assign Certificates of Sponsorship, and improving communication between branches so the organisation knows when a sponsored worker doesn't attend work.
- Home Office identifies weaknesses — through a compliance check or other information.
- B-rating — the licence is downgraded from the decision-letter date.
- Action plan — case-specific improvements are set.
- Remediation — the sponsor corrects the specified weaknesses.
- Further compliance check — the Home Office assesses whether requirements are met.
- A-rating / second plan / revocation — depending on the outcome.
The action plan is specific to the compliance weaknesses identified by the Home Office. It's not a standard list of changes that applies identically to every B-rated sponsor.
How long does a sponsorship action plan last?
All sponsorship action plans are set for a fixed period of 3 months (current period as at May 2026 — confirm against the latest sponsor guidance). The Home Office considers this the maximum period needed to correct the issues that led to failure to meet sponsor duties; the B-rating requires the sponsor to improve within a period not exceeding three months.
Is there a fee for a sponsorship action plan?
Yes. The sponsor must pay a fee for the sponsorship action plan, covering the Home Office's preparation and supervision of the plan. If it accepts the action plan, the sponsor must pay the fee within 10 working days of the relevant notification.
Sponsorship action-plan fee
Current £ figure not shown — the sponsor guidance confirms a fee is payable but directs employers to the current UK visa fees. Confirm on GOV.UK →
Payment window
Pay within 10 working days of the notification if you accept the plan (as at May 2026 — confirm).
The current action-plan fee amount is not stated in the sponsor guidance. It should be taken from the current GOV.UK visa fees rather than quoted here.
What are the options after receiving a B-rating?
After the Home Office gives B-rating and requests the action-plan fee, the guidance provides three practical responses:
Accept the action plan
Accept the plan and pay the fee within the required period. The organisation remains licensed and proceeds through the remediation process.
Decline and surrender
Where the organisation isn't sponsoring workers, it may choose to surrender the licence, following the relevant SMS/declaration process within the specified period. SMS →
Take no action
If the sponsor ignores the notification or doesn't pay the fee within the deadline, the Home Office states it will revoke the licence.
Ignoring a B-rating is not a neutral option. Under the current guidance, failure to pay the action-plan fee within the required period can lead to revocation.
What happens at the end of the action plan?
After the action-plan period ends, the Home Office carries out further compliance checks to assess whether the requirements have been met. There are three broad outcome paths:
| Outcome | What it means |
|---|---|
| Requirements met | The required improvements have been made and the sponsor meets the relevant requirements — the rating can be restored to A-rating. |
| New, different correctable issues | Further non-compliance is found that wasn't covered by the existing plan and falls within the downgrade framework — the Home Office may require a second action plan, with a further fee. |
| Requirements not met / serious non-compliance | The action-plan requirements aren't met, or more serious non-compliance arises justifying immediate revocation — the licence is revoked. |
How many times can a Sponsor Licence be B-rated?
The current guidance limits repeated use of the B-rating/action-plan process. If the organisation has been B-rated and subject to an action plan twice within a rolling 4-year period (current limit as at May 2026 — confirm against the latest sponsor guidance), and the Home Office subsequently finds that the sponsor again meets the criteria for downgrade, it will revoke the licence rather than issue another B-rating/action plan. The guidance also lists this repeat B-rating circumstance as a ground for revocation.
B-rating is not an indefinitely repeatable remediation process. Under the current guidance, a sponsor that has already been B-rated twice within the relevant rolling period can face revocation if it again meets the downgrade criteria.
How does B-rating affect Certificate of Sponsorship activity?
Sponsors generally need A-rating to assign a CoS. A B-rated sponsor can only use the specified continuing-worker exception rather than sponsor new workers. A sponsor cannot assign any CoS where its licence is suspended, dormant or revoked.
This section only explains how rating affects assignment authority. Full CoS rules: Certificates of Sponsorship · assigning a CoS.
How does B-rating affect multiple routes or branches?
The rating applies to the relevant licence type, not separately to each individual route within that type. Where an organisation holds more than one Worker route, it can't ordinarily have an A-rating for one Worker route and a B-rating for another on the same Worker licence type. Where an organisation holds more than one licence type — such as Worker and Temporary Worker — the ratings will usually be the same; in exceptional circumstances the Home Office may downgrade only one licence type where the non-compliance relates solely to that type.
On branches: where an employer holds a single licence structured as head office and all UK branches, a downgrade applies to all branches covered by that licence. Where branches are separately licensed, downgrading one branch doesn't automatically downgrade the others, although the Home Office may investigate them.
The impact of downgrade depends partly on how your Sponsor Licence is structured. A single licence covering head office and all branches carries rating consequences across the branches included in that licence.
→ Changes, mergers & takeovers
What is a Provisional Sponsor Licence rating?
UK Expansion Worker has a distinct rating system. A licence may initially receive a Provisional rating where the Authorising Officer — who is also the Level 1 User — is an employee of the overseas business and will assign their own CoS to apply for entry clearance. The sponsor can move to A-rating once that Authorising Officer has obtained entry clearance and updated their details through the SMS in accordance with the applicable route rules. A Provisional UK Expansion Worker sponsor cannot be downgraded to B-rating, doesn't receive a B-rating action plan if it fails to meet the applicable requirements, and may instead face revocation. A Provisional sponsor must successfully request A-rating before sponsoring workers other than the Authorising Officer.
Detailed UK Expansion Worker rating conversion is outside this page. The full Global Business Mobility procedure is covered by separate route guidance.
B-rating, suspension and revocation are different
| Status | Broad purpose / effect | Sponsor new workers? |
|---|---|---|
| A-rating | Normal licence status | Generally yes, subject to route/CoS rules |
| B-rating | Correctable compliance issues under action plan | No |
| Suspension | Licence placed on hold while concerns are considered/investigated | No |
| Revocation | Sponsor Licence terminated | No |
This is not a guaranteed escalation sequence. A licence doesn't always move A → B → suspension → revocation — the Home Office can move directly to suspension or revocation where the circumstances warrant it.
→ Suspension · revocation
What should an employer do after receiving a proposed downgrade?
A practical way to organise a response to a proposed-downgrade letter:
- Record the response deadline — identify the date of the Home Office letter and calculate the current response window.
- Identify each alleged compliance issue — separate reporting, record keeping, CoS management, systems/process, branch communication and other sponsor-duty issues.
- Compare the allegation with the source records — gather contemporaneous evidence relevant to the specific allegation.
- Correct operational weaknesses where appropriate — don't wait for the final rating decision before addressing clear internal process failures.
- Prepare the written response — address each Home Office point with relevant evidence and explanation.
- Plan for possible B-rating — consider new recruitment, CoS requirements, existing sponsored workers, SMS users and action-plan implementation.
This framework is for organising a response to a proposed downgrade. It does not determine whether the Home Office's concerns are justified or predict the outcome.
Sponsor Licence Rating Response Guide
Tell the guide what you've received and it will point you to the relevant deadlines and next-step pages. This doesn't assess whether the Home Office decision is legally correct, or predict the outcome.
This guide organises your next steps. It does not determine whether the Home Office's decision is correct, and it does not predict whether A-rating will be restored.
How ENS can assist with B-rating and action plans
We advise and assist licensed sponsors with reviewing a proposed downgrade letter; identifying the sponsor-duty issues the Home Office has raised; reviewing relevant HR, sponsorship and SMS records; preparing written representations and supporting evidence; helping the organisation understand the operational effect of B-rating; reviewing a sponsorship action plan; assisting with organising corrective compliance measures; preparing for a follow-up compliance check; and advising on related suspension or revocation issues within our regulatory scope. This is administrative Home Office correspondence — not a tribunal appeal.
Sponsor Licence downgrade and action-plan assistance
The scope of work depends on the Home Office concerns, the number of compliance issues involved and the evidence that needs to be reviewed. ENS can assist with a proposed-downgrade response, action-plan preparation or a broader Sponsor Licence compliance review. We agree the scope and a fixed fee in writing before any work begins.
Discuss a Sponsor Licence compliance issue
Frequently asked questions
What is an A-rated Sponsor Licence? +
An A-rating is normally awarded when the Sponsor Licence is first granted because the Home Office is satisfied that the organisation has systems capable of supporting its sponsor duties and can be trusted to act appropriately as a sponsor. The rating remains subject to ongoing Home Office assessment.
Why can a Sponsor Licence be downgraded to B-rating? +
The Home Office may downgrade a licence where it identifies relatively minor sponsorship failures it believes can be corrected through a sponsorship action plan — for example inadequate compliance processes or failure to provide requested information the sponsor holds. More serious issues may instead lead to suspension or revocation.
Can a B-rated sponsor hire new sponsored workers? +
No. A B-rated sponsor cannot assign CoS to sponsor new workers until it has completed the required process and regained A-rating. Limited exceptions can apply to certain workers the organisation was already sponsoring who need eligible permission-to-stay applications.
How long does a sponsorship action plan last? +
Under the current May 2026 guidance, action plans are set for a fixed period of 3 months. This is a volatile rule and should be confirmed against the latest sponsor guidance.
What happens if a sponsor does not complete its action plan? +
If the sponsor fails to meet the action-plan requirements within the required period, the Home Office states it will revoke the Sponsor Licence. Revocation can also follow if more serious non-compliance is identified during the follow-up assessment.
Can a Sponsor Licence be B-rated more than once? +
Yes, but the process is limited. Under the current guidance, if the sponsor has been B-rated and subject to an action plan twice within a rolling four-year period and again meets the downgrade criteria, the Home Office will revoke the licence rather than issue another B-rating.
Related guidance
Contextual: Certificates of Sponsorship · assigning a CoS · SMS · Sponsor Licence hub · glossary.
Disclaimer. This page provides general information about Sponsor Licence ratings and sponsorship action plans. Home Office action depends on the circumstances of the sponsor and the compliance issues identified — a B-rating is not the only possible compliance outcome. Working-day periods and the action-plan fee are volatile and should be independently verified against the current GOV.UK source. Sources: Home Office sponsor guidance — Part 1, Part 2 & Part 3 — confirm the current version on GOV.UK.
Source basis: the UK Immigration Rules and the Home Office sponsor guidance for Workers and Temporary Workers (sponsor a worker, and sponsor duties and compliance) published on GOV.UK. Rules and guidance change; confirm the current version on GOV.UK before relying on it.
Protect your Sponsor Licence rating
A B-rating gives a sponsor a limited opportunity to correct compliance weaknesses, but it also restricts new sponsorship and requires the organisation to complete a Home Office action plan within the prescribed period. Employers receiving a proposed downgrade should identify the issues, preserve relevant evidence and address both the Home Office response and the underlying compliance problem.