A sponsor licence is Home Office permission that allows a UK employer to hire workers from outside the resident labour market on certain visa routes. It is held by the organisation, not the worker, and is required before assigning sponsorship to a foreign national.
In one line: A sponsor licence is the Home Office approval an employer needs before it can sponsor overseas workers on routes like the Skilled Worker visa.
How a sponsor licence works
An employer applies to the Home Office, pays a fee and shows it can meet sponsor duties such as record-keeping, reporting absences and only filling genuine vacancies. Once granted, the licence runs for a set period before it needs renewing.
With a valid licence the employer can issue a Certificate of Sponsorship to a chosen worker. For example, a care home wanting to recruit a nurse from abroad in 2026 first secures a sponsor licence, then assigns a certificate so the nurse can apply for a visa.
Sponsor duties continue throughout the licence. The Home Office can suspend or revoke a licence if duties are breached, which can affect the visas of workers already sponsored under it.
Sponsor licence vs Certificate of Sponsorship
A sponsor licence sits at the organisation level and is the employer's standing permission to sponsor at all. It does not name any individual worker.
A Certificate of Sponsorship is issued under that licence for one specific worker and one specific job, so the licence is the gateway and the certificate is the per-hire document.
Primary source: Home Office: UK visa sponsorship for employers (GOV.UK)