Illegal employment is a significant issue in the UK, often overlooked. Valued at approximately £180 billion, it thrives on unscrupulous employers who take advantage of undocumented workers, driving down wages across various sectors and evading the taxes that law-abiding citizens must pay.
The prevalence of this problem is partly due to the outdated and easily manipulated paper-based verification processes. Landlords, employers, and financial institutions are tasked with confirming individuals’ legal status, but the complex regulations lead to widespread errors in judgment.
Exploiting these loopholes, criminal organizations sell counterfeit passports for exorbitant prices, such as £12,500 each, enabling individuals to circumvent the official system. Consequently, there has been a 51% increase in arrests related to illegal employment in the past year.
To combat this issue effectively, the implementation of Digital ID is crucial. The government’s initiative to advance this technology is a step in the right direction. Digital ID, if executed correctly, has the potential not only to identify illicit employers but also to eliminate the demand for their services by providing real-time verification of individuals’ entitlement to work, rent, and conduct financial transactions.
By leveraging Digital ID, the existing loopholes in the system can be eradicated, leading to the collapse of the exploitative business model. This technology allows for immediate monitoring of questionable payrolls, ensuring timely intervention against the worst offenders while allowing legitimate businesses to operate without interference.
Numerous countries have successfully integrated digital IDs into their systems, resulting in significant reductions in undeclared work. Estonia’s incorporation of digital IDs in payroll and tax processes and India’s Aadhaar system, which securely serves over a billion individuals, demonstrate the effectiveness of this approach.
While some critics advocate for e-visas as a sufficient solution, they fail to address the fundamental flaws in the current system. Digital ID, unlike e-visas, offers a universal, tamper-proof, and instant method of linking immigration status to everyday transactions, effectively closing the loopholes that enable illegal activities.
The ultimate goal of Digital ID is to diminish illegal employment opportunities, raise wages, and ensure fairness for law-abiding individuals. While rogue employers may still exist, Digital ID will deprive them of the vulnerable individuals they prey upon.
With the government’s endorsement of Digital ID, it is imperative that swift action is taken to dismantle the foundations of the underground economy and cultivate a more equitable and resilient society.
