A new sponsor licence is granted with an A-rating. GOV.UK says an A-rated licence lets you assign Certificates of Sponsorship (CoS) and puts your business on the register of sponsors. A licence can later be downgraded to a B-rating. Section C8 of Part 3 of the sponsor guidance (version 08/26, valid from 28 August 2026) explains how, with paragraph references.
This guide explains the published process. It does not assess any organisation's position. Speak to a regulated adviser about your circumstances.
What a B-rating is
The guidance calls a B-rating "a transitional rating" (C8.12). A B-rated sponsor must improve enough to regain an A-rating within a set time limit of no more than 3 months. If it does not, the Home Office will revoke the licence.
The Home Office uses a downgrade for relatively minor breaches it thinks an action plan can fix (C8.2). In more serious cases, it suspends or revokes instead. It can also skip the downgrade and suspend or revoke directly (C8.5).
Why a licence is downgraded
C8.1 gives two examples: a sponsor that lacks the processes to meet its duties, or one that did not provide information it held when asked. More broadly, a downgrade is considered when any issue in Annex C2 or Annex C3 arises (C8.5).
C7.25 says that where a breach is relatively minor and the sponsor is willing and able to fix it, the Home Office will in most cases support improvement through a B-rating and a time-limited action plan.
A Provisional sponsor on the UK Expansion Worker route cannot be B-rated. Revocation is considered instead (C8.4).
The process
Before downgrading, the Home Office writes to say what it proposes and why. You have 20 working days from the date of the letter to respond in writing (C8.6). You can send evidence. There is no oral hearing (C8.7). It aims to decide within 20 working days of your response (C8.8). If you do not respond in time, it proceeds anyway (C8.9).
A downgrade takes effect from the date of the decision letter (C8.10).
What changes under a B-rating
While B-rated:
- you cannot assign a CoS to any new worker (C8.3 and C8.11)
- you can still assign a CoS to a worker you already sponsored before the downgrade, if they need permission to stay (C8.15)
- you cannot add branches or a new route to the licence (C8.15; Part 1, L10.13)
- automatic provisions to replace the Authorising Officer or Key Contact, or add Level 1 Users, are removed (C8.3)
The Home Office decides how many CoS you may use for extensions during the plan (C8.16). It closely monitors their use. Using one to sponsor a new worker leads to revocation (C8.21 and Annex C1(p)).
The action plan and its fee
When the Home Office decides on a B-rating, it asks you to pay the action plan fee. GOV.UK lists the fee as £1,579 (checked 3 Oct 2026). C8.14 sets out three options:
- Accept and pay within 10 working days, using the "Action plan details" function in the sponsorship management system. You stay licensed.
- Decline. If you are not sponsoring anyone, you can surrender the licence by selecting "decline" and returning the signed declaration within 10 working days. If you decline but do not return the declaration in time, the Home Office will revoke the licence.
- Do nothing. If you ignore the notice or do not pay within 10 working days, the Home Office will revoke the licence.
Once you pay, the Home Office sends the plan (C8.15). C8.13 says it sets out the steps to regain an A-rating. Its examples are better record keeping, tighter control over staff who assign CoS, and better communication between branches about workers who do not turn up.
The three-month period
Every action plan runs for a fixed 3 months (C8.17). At the end, the Home Office runs further compliance checks (C8.18). The three possible outcomes are:
- Requirements not met, or more serious issues found: the Home Office will revoke the licence.
- New issues found that the plan did not cover, from Annex C2 or C3, not serious enough for suspension: a second action plan, with a new fee.
- All requirements met and no other concerns: the A-rating is restored and the CoS allocation reviewed.
You can ask for an earlier check if you are certain you have met every requirement (C8.19). The same three outcomes then apply. The Home Office normally checks once during a plan, but may check again if it has evidence of other failings (C8.20).
How many times
A sponsor can be B-rated and on an action plan for at most 3 months at a time, and at most twice in any rolling 4-year period (C8.22). The period runs from the date the licence was first granted (C8.23). If a sponsor would be downgraded a third time within that period, the Home Office will revoke the licence (C8.24).
GOV.UK's summary puts it simply: you can have only two B-ratings while your licence is valid.
B-ratings after suspension
A suspended licence can be reinstated with a B-rating (C9.16). In that case there is no further 20-day response window, and the CoS allocation may be reduced or set to zero (C9.24 and C9.25).
The printable sponsor compliance checklist lists the duties an action plan usually targets.
Common questions
Can we still extend our existing workers while B-rated?
C8.15 allows a CoS for a worker you already sponsored before the downgrade, if they need permission to stay. The Home Office sets how many you can use (C8.16).
Is the action plan fee refundable if we decline?
The guidance does not say a refund applies. Declining is only an option if you are not sponsoring anyone and you surrender the licence (C8.14).
Does a B-rating show on the public register?
GOV.UK says the register of licensed sponsors includes each organisation's sponsorship rating. Our sponsor licence check shows what the register currently lists.
Can we talk to someone about our situation?
You can tell us about your situation. We do not assess cases or help with forms.