The UK Home Office is changing the way employers manage their immigration sponsorship licences online. The changes have been put in place to strengthen security while also giving the Home Office and employers greater control and visibility.
The changes started coming into force last month (September), and there are a number of key areas to be aware of. Users of the Sponsor Management System (SMS) will have an extra security step when logging in; the ‘Level 2’ user role will be discontinued; the Home Office will remove inactive SMS user accounts; and authorising officers will receive notifications about activity on their sponsor licence.
We will get into all of this in more detail but suffice to say that if you’re a sponsor you will need to keep up to date with these changes.
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Multi-factor authentication (MFA) is being introduced for SMS users
As you may know, this is already underway. The Home Office brought in mandatory MFA for Worker and Temporary Worker sponsors on 3 September 2026.
What does this mean in practice? Once MFA is activated for a sponsor licence, users will need to enter a one-time passcode (OTP) as well as their existing username and password when accessing the SMS. They will receive the code by email or text message.
Instead of switching every sponsor over in one go, the Home Office is rolling the programme out in phases. If you’re an authorising officer, key contact, or Level 1 sponsor, you should receive a notification from the Home Office two weeks before MFA is activated on your licence.
Before that happens, it’s important to check and correct any incorrect or incomplete information that could prevent users from completing MFA registration or accessing the SMS after activation.
So now is the time to check email addresses, mobile numbers, and dates of birth to make sure all information is up to date. It’s also a good time to discuss with users how the new login process will work to avoid any unwanted surprises down the line.
Sponsors can no longer appoint new Level 2 users
This rule about no longer being able to appoint Level 2 users came into force on 9 September 2026. While existing Level 2 users can continue for the time being, sponsors must either upgrade them (if eligible) to Level 1 or deactivate their accounts by 8 March 2027.
The fastest way to get up to speed on this is to review each current Level 2 user and ask whether they still need access to the SMS, whether they will need to retain that access after March 2027, and whether they are eligible to become a Level 1 user. If they do not need continued access, their account should be deactivated.
Also keep in mind what should happen if a person currently handling SMS activity leaves the organisation or changes role, as well as considering which department owns SMS responsibilities so everyone is on the same page.
The Home Office itself will also start removing inactive SMS user accounts. While there is no specific deadline on when this will start, it’s best not to wait for a formal removal date and carry out an audit ahead of time to remove people who no longer require access.
Authorising officers will receive more notifications
Since 9 September 2026, authorising officers have begun receiving automated email notifications about activity on their sponsor licence.
Activities that may create a notification includes changes to Level 1 user details, the addition of a new Level 1 user, and changes to the authorising officer’s email address.
Authorising officers should establish who is responsible for reviewing notifications and escalating anything unexpected. For larger companies, the increase in notifications could create a lot of new admin, so clarity on how this monitoring is carried out will be important.
What’s next? Watch for your MFA activation date
The MFA rollout began on 3 September, with the Home Office continuing to notify organisations about when their individual activation date will be.
Because of this, sponsors should monitor their SMS message board and communications from the Home Office rather than assuming MFA has either already been activated or will be activated on a particular date.
An important side note: Student sponsors are being handled separately, with MFA rollout expected in early November 2026.
Working with an immigration lawyer
The changes to the Sponsor Management System are relatively straightforward, but sponsors will need to take action to make sure they can continue managing their licences without disruption.
Reviewing your SMS users, checking contact details, preparing for multi-factor authentication and deciding how to deal with existing Level 2 users are all important steps.
For employers with complex sponsorship arrangements, an immigration specialist can help clarify what needs to change and make sure your internal processes and responsibilities remain compliant with Home Office requirements. Getting advice early can also help identify potential issues before they affect access to the SMS or the daily management of sponsored workers.
If you are unsure how the new SMS changes affect your organisation, or require advice on any aspect of business immigration, please contact us today.
