Illegal employment is a significant issue in the UK, with a hidden economy worth almost £180 billion. This problem is fueled by unscrupulous employers who take advantage of undocumented workers, driving down wages across various sectors and evading the taxes that law-abiding workers must pay.
The root of this problem lies in the outdated, easily manipulated paper-based verification processes used by landlords, employers, and banks to confirm individuals’ legal status. The complexity of the rules often leads to errors in verification, creating loopholes that criminal organizations exploit by selling counterfeit passports for £12,500 each to individuals seeking to circumvent the system. Consequently, illegal working arrests increased by 51% in the previous year.
To combat this issue, the government is moving towards implementing Digital ID as a solution. By utilizing Digital ID effectively, not only can illicit employers be identified and prosecuted, but the demand for their services can also be eradicated. Digital ID offers real-time validation of individuals’ entitlement to work, rent, and bank without the need for fake documentation or illicit shortcuts.
Implementing Digital ID will eliminate loopholes that currently enable illegal activities, leading to the collapse of the illicit business model. By monitoring payrolls in real-time, the UK can proactively address illegal practices rather than relying on periodic data reports. This shift towards smart enforcement will allow authorities to target the most egregious offenders while supporting law-abiding businesses.
Countries like Estonia and India have successfully integrated digital IDs into their systems, reducing undeclared work and enhancing service accessibility. In contrast, the UK remains reliant on outdated practices. Critics who advocate for e-visas overlook the limitations of such systems, which fail to address the underlying loopholes present in paper-based processes.
Digital ID offers a universal, tamper-proof, and instantaneous solution that connects immigration status directly to everyday transactions. This comprehensive approach not only enhances border control but also effectively combats illegal employment practices.
The ultimate goal of Digital ID is to reduce illegal labor, increase wages, and promote fairness for all individuals adhering to regulations. While rogue employers may persist, Digital ID will deprive them of the vulnerable individuals they exploit.
With government support for Digital ID increasing, the focus now shifts to its successful implementation. By disrupting the shadow economy, the UK can foster a more equitable and resilient society.
