Inside the gaps: How loopholes leave migrant workers vulnerable in the UK
The United Kingdom now depends more than ever on migrant labor, with foreign-born workers driving key sectors such as transport, healthcare, communication, and finance — contributing billions to the economy, according to data from Remitly. However, a BBC investigation has revealed widespread exploitation of undocumented migrants and asylum seekers
through illegal work and criminal networks. Many are paid as little as £4 an hour and work up to 14-hour shifts. The report also uncovered “ghost companies” — small shops and barbers using fake directors to hide illicit activities, including illegal tobacco and vape sales. Financial experts say such “phoenix” companies cost the UK hundreds of millions in lost taxes annually. Authorities have introduced new ID verification rules for company directors, set to take effect from November 2025, to combat fraud and exploitation. The Gangmasters and Labour Abuse Authority warns that small retail and care sectors are at growing risk of labor abuse, while enforcement remains weak and penalties low. Despite the risks, migrant workers remain vital to the UK economy. The health and care sector employs over 16% of all migrants, and their numbers have risen by more than 100% in the past five years. Experts say stronger oversight, fair work rights, and a functional digital ID system are essential to protect migrant workers and ensure the UK’s economy benefits without exploitation.
