UK’s reliance on migrant labour faces mounting crackdown amid exploitation concerns

As the UK’s economy increasingly depends on migrant workers, recent investigations reveal rising exploitation and illicit practices in frontline sectors, prompting new government reforms aimed at tightening oversight and safeguarding vulnerable workers.

The United Kingdom’s economy increasingly relies on migrant workers across vital sectors such as transport, health, communication, and finance, with foreign-born employees making significant contributions. Data from Remitly, a US-based remittance company, highlights the importance of this workforce, reporting that migrant workers contribute billions of pounds annually, including a substantial 327 billion pounds turnover in finance and a rapid rise in health and care sector employment , a 116 percent increase over five years. Projections suggest the UK could see around 1.8 million migrant health and care workers by 2028 if current trends continue. This demographic forms a backbone of critical services, underscoring the nation’s dependence on international labour.

Yet, beneath this economic reliance lies a deeply troubling reality of vulnerability and exploitation. A BBC investigation revealed that undocumented migrants and asylum seekers are often ensnared in clandestine work arrangements, particularly in small retail outlets such as mini-marts and barbershops. These establishments frequently operate through networks of “ghost” companies, with proxy directors who obscure true ownership and evade regulatory scrutiny. Financial crime expert Graham Barrow described this tactic as “classic phoenixing,” where firms repeatedly close and reopen under slightly altered identities to dodge tax and oversight. HM Revenue & Customs (HMRC) estimated that such abuses cost the UK hundreds of millions of pounds in the tax year 2022-23 alone, while enforcement agencies face ongoing challenges containing these practices.

Adding to the problem, illicit retail activities, notably illegal tobacco and vape sales, generate significant illicit profits for these front businesses. Although Operation CeCe and Operation Joseph, jointly run by Trading Standards and HMRC, have confiscated over a billion illegal cigarettes and more than a million illicit vapes in recent years, penalties remain disproportionately low. Fines as little as £200 fail to deter these operations that rake in thousands weekly, creating a low-risk, high-reward environment favourable to exploitation.

At the frontline of labour exploitation are many migrant workers enduring precarious legal positions. Asylum seekers awaiting decisions generally cannot work legally and receive minimal government support, pushing many into informal, often exploitative, labour arrangements. Reports indicate some workers earn as little as £4 an hour for shifts lasting up to 14 hours. The Gangmasters and Labour Abuse Authority (GLAA) spotlighted sectors such as car washes, construction, and convenience retail as hotspots for labour abuses involving irregular workers. However, an inspection by the Independent Chief Inspector of Borders and Immigration found that enforcement efforts tend to focus on detaining workers rather than prosecuting employers, leading to a lack of accountability in the exploitation system. While the Home Office intensified inspections in 2024, comprehensive data on employer sanctions remains unpublished.

Concurrently, recent government reforms aim to tighten control over company registrations and migrant worker protections. Since March 2024, Companies House has acquired new powers to scrutinise suspicious company data and collaborate with law enforcement. From November 2025, directors will be required to verify their identities via a government portal, bolstering efforts against shell firms used in financial crime. Parallel to this, the UK government introduced a crackdown banning employers found guilty of serious breaches from hiring overseas staff for at least two years, targeting repeat offenders of visa abuses and exploitative labour practices.

In the healthcare sector, a notable reform initiated in April 2025 requires employers to prioritise hiring migrants already in the UK before recruiting abroad. This change addresses criticism of the Health and Care Worker Visa program, which has historically tied migrant workers to specific employers, limiting their freedom to change jobs and increasing their vulnerability to exploitation. Gavin Edwards, head of social care at UNISON, described new measures enabling visa holders to switch sponsors more easily as “vital” in protecting migrant care workers from deportation and abuse. Nonetheless, the GLAA reported that over 60% of exploitation and abuse cases in early 2024-25 arose in health and care sectors, signalling persistent challenges.

Further complicating enforcement is the UK’s fragmented identity verification system. Unlike many European countries, the UK lacks a national identity card, relying instead on passports, biometric residence permits, and online “share codes” for right-to-work checks. Experts describe this as a patchwork system vulnerable to manipulation, allowing illegal working and fraudulent company registrations to persist. The government’s plan to introduce a mandatory national digital ID system by the end of the current Parliament promises to modernise immigration controls but has also raised concerns among civil liberties groups about privacy and potential discrimination.

Beyond structural and regulatory issues, academic research highlights profound exploitation faced by migrant workers in less visible sectors such as domestic care and food delivery. A study from the University of Birmingham revealed that predominantly racialised and minoritised migrant workers in these fields often remain excluded from labour policy debates and lack adequate rights protection, stressing the urgent need for policies centred on workers’ dignity and legal safeguards.

The UK government’s enforcement landscape features multiple agencies, GLAA, HMRC, Employment Agency Standards Inspectorate, tasked with protecting workers and combating labour abuse, yet gaps remain. A 2023-24 GLAA annual report emphasises their mission but also implies the enduring complexity of addressing exploitation across sectors. Augmenting these efforts, a 2024 Home Office operation targeted over 275 premises including car washes, uncovering illegal working practices and poor conditions, yet many systemic enforcement issues linger unresolved.

Despite these challenges, migrant workers continue to make vital contributions, including sending an estimated £9.3 billion in remittances from the UK to families abroad in 2023, supporting communities worldwide. India’s, Pakistan’s, and Nigeria’s diaspora remain major recipients. Experts recognise that reforms enhancing company oversight, sponsorship flexibility, and enforcement integration could reduce exploitation , if backed by adequate resources and political will. Graham Barrow noted that successful linking of Companies House verification with labour enforcement might close significant loopholes, but warned that without proper resourcing, exploitative “ghost companies” will persist.

For many migrants, the UK remains a land of opportunity and relative stability, yet without consistent regulatory enforcement and fair access to protections, these opportunities often come at the cost of vulnerability to exploitation. The country’s reliance on migrant labour demands a comprehensive approach that balances economic needs with safeguarding human dignity.

📌 Reference Map:

• ^[1] (InfoMigrants) – Paragraphs 1, 2, 3, 4, 5, 7, 8, 9, 10, 11, 12, 13
• ^[2] (University of Birmingham) – Paragraph 6
• ^[3] (Gov.uk Home Office) – Paragraph 8, 11
• ^[4] (Gov.uk Labour Market Enforcement Report) – Paragraph 7, 11
• ^[5] (GLAA Annual Report) – Paragraph 7, 11
• ^[6] (Personnel Checks) – Paragraph 6
• ^[7] (HC Magazine) – Paragraph 8, 11

Source: Noah Wire Services

Noah Fact Check Pro

The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.

Freshness check

Score:
8

Notes:
The narrative presents recent data and developments, including government reforms and statistics up to November 2025. However, some information, such as the BBC investigation into undocumented migrants in small retail outlets, lacks a specific publication date, making it challenging to assess its freshness. Additionally, the report references a 2024 Home Office operation targeting over 275 premises, but without a precise date, it’s unclear if this is recent or recycled content. The inclusion of updated data alongside older material suggests a mix of fresh and recycled content. The absence of specific dates for certain events or data points reduces the overall freshness score.

Quotes check

Score:
7

Notes:
The narrative includes direct quotes from individuals such as Graham Barrow and Gavin Edwards. However, without conducting a detailed search, it’s difficult to determine if these quotes are original or have been used in previous publications. The lack of specific dates for some quotes further complicates this assessment.

Source reliability

Score:
6

Notes:
The narrative cites reputable organisations like the BBC and HM Revenue & Customs (HMRC), which adds credibility. However, the primary source of the report is InfoMigrants, which is less well-known and may not be as widely recognised for its reliability. The absence of specific publication dates for some referenced materials also raises questions about the timeliness and verification of the information.

Plausability check

Score:
7

Notes:
The narrative presents a coherent and plausible account of migrant worker exploitation in the UK, supported by references to government reports and statistics. However, the lack of specific dates for certain events and data points makes it challenging to fully verify the accuracy and timeliness of the claims. The absence of supporting details from other reputable outlets for some claims also raises concerns about the comprehensiveness of the information.

Overall assessment

Verdict (FAIL, OPEN, PASS): OPEN

Confidence (LOW, MEDIUM, HIGH): MEDIUM

Summary:
The narrative presents a plausible account of migrant worker exploitation in the UK, supported by references to government reports and statistics. However, the lack of specific publication dates for certain events, data points, and quotes makes it challenging to fully verify the freshness and originality of the content. The reliance on less well-known sources like InfoMigrants and the absence of supporting details from other reputable outlets for some claims further complicate the assessment. Therefore, while the overall assessment is ‘OPEN’, there are notable concerns regarding the timeliness, originality, and verification of the information presented.