UK Government Fails to Collect Over £222 Million in Fines from Firms Hiring Illegal Workers
Less than a quarter of penalties issued to employers for hiring undocumented immigrants are paid, with critics calling the Home Office's clampdown ineffective.
The UK government has failed to collect more than £222 million in fines issued to companies for hiring illegal immigrant workers, according to a report citing Freedom of Information data. Less than a quarter of the £288.6 million in civil penalties issued between the 2021/22 and 2025/26 fiscal years have been paid, leaving a shortfall of 77 percent.
While some of the uncollected fines may be attributed to discounts for early payment or reductions and cancellations on appeal, the significant deficit raises concerns about the effectiveness of the Home Office's enforcement efforts. Robert Bates, Research Director at the Centre for Migration Control, described the figures as revealing a "fundamental weakness" in Immigration Enforcement, suggesting that "Home Office incompetence has meant there is little actual deterrent in place for hiring illegal workers."
Fines for employers found to have hired illegal workers without conducting proper pre-employment checks can reach up to £45,000 per worker for a first offense and £60,000 per worker for repeat offenders. Despite a significant increase in enforcement activity, with Home Secretary Shabana Mahmood boasting of it being "to the highest level in British history," the collection rate suggests a gap between penalties issued and funds recovered.
The value of fines issued to employers, including businesses such as barbers, nail salons, and takeaways, has surged. In the 2025/26 fiscal year, employers were hit with £121.7 million in fines, a nearly 1,900 percent increase compared to £6.1 million in the 2021/22 fiscal year. However, the amount paid in 2025/26 was £27.5 million, with the total collected across the period amounting to £66.4 million.
Notable penalties include a £360,000 fine issued to Dekorprint, a packaging firm in the West Midlands, and a £180,000 fine to Cinnamon Indian restaurant in Keynsham, Bristol, which has since closed. The Royal China restaurant in London has paid fines totaling £470,000 following multiple visits by immigration officers.
A Home Office spokesperson stated that the department "will always pursue full debt recovery in every case" and that "illegal working undermines honest employers, undercuts local wages, and fuels organised immigration crime." The spokesperson added that the government has increased immigration enforcement, leading to a 122% rise in illegal working arrests and a 111% rise in raids.
The ability for individuals to work without documentation is considered a significant factor for migrants overstaying visas or entering the country illegally. Businesses commonly found employing illegal workers include car washes, barbers, salons, hotels, takeaways, haulage firms, care providers, and home renovation services.