UK crackdown on illegal working: How Home Office and delivery giants are changing the gig economy rules

UK Home Office joins forces with Deliveroo, Just Eat and Uber Eats to fight illegal working in the gig economy. Find out what this means for the industry today!
Representative image of delivery enforcement operation in the UK gig economy
Representative image of delivery enforcement operation in the UK gig economy

How will the Home Office’s new partnership with Deliveroo, Just Eat and Uber Eats change enforcement against illegal migrant workers in the gig economy?

In a significant escalation of the UK’s Plan for Change, the Home Office confirmed on 22 July 2025 that it has signed an operational partnership with three of the country’s largest food delivery platforms—Deliveroo, Just Eat and Uber Eats. The agreement will enable real-time sharing of asylum hotel location data with these delivery companies, allowing them to identify and suspend accounts suspected of being used by migrants with no legal right to work in the United Kingdom.

Home Secretary Yvette Cooper said the initiative represents decisive action to close loopholes that have long enabled illegal working in the gig economy. The announcement follows a year-long crackdown under the Labour government, which has increased illegal working raids by 50% and delivered 7,130 arrests over the past 12 months. Nearly 750 civil penalty notices were issued in the first quarter of 2025 alone—an 80% rise compared to the same period last year—reflecting the highest enforcement level since 2016.

Analysts see the move as a turning point for gig-economy compliance, given that the sector has been historically under-regulated. With approximately 1.6 million gig workers in the UK, many classified as self-employed, the sector has long operated outside the mandatory right-to-work verification framework, creating opportunities for fraudulent account sharing.

Representative image of delivery enforcement operation in the UK gig economy
Representative image of delivery enforcement operation in the UK gig economy

What is the historical context of illegal working in the gig economy and why has the issue become a priority now?

The UK government has required right-to-work checks for employees since 2008, but self-employed gig workers have largely been exempt. This gap has allowed a parallel informal labour market to thrive, with reports suggesting that migrants staying in asylum hotels have been using account-sharing arrangements to earn up to £1,000 a week delivering food.

The Labour administration, which came to power in July 2024, launched the Plan for Change as part of a broader immigration and border security overhaul. The initiative prioritises targeting sectors where illegal working is widespread, including construction, car washes, and now the gig economy. A nationwide blitz on delivery rider exploitation began in early July 2025, prompting closer cooperation between industry and government.

This week’s agreement formalises that cooperation. By giving delivery platforms access to asylum hotel location data, the government aims to help them detect suspicious account activity more effectively. This approach represents a marked shift from voluntary compliance to a coordinated enforcement model backed by government data.

How will data sharing and new verification technology strengthen detection of illegal workers?

Under the agreement, Deliveroo, Just Eat and Uber Eats will integrate government-provided data into their fraud detection systems, allowing them to flag and suspend accounts accessed from locations linked to asylum hotels. These alerts will complement existing security measures, including facial verification and real-time identity checks.

Cooper stated that illegal working undermines honest businesses, exploits vulnerable individuals and fuels organised crime networks. Eddy Montgomery, Director of Enforcement, Compliance and Crime at the Home Office, described the new partnership as an “additional tool to disrupt and stop the abuse of our immigration system.”

The enforcement push aligns with the forthcoming Border Security, Asylum and Immigration Bill, which will legally require gig-economy platforms to conduct right-to-work checks on all riders. Until now, such checks have been voluntary, leaving enforcement gaps that criminal networks have exploited.

Institutional investors monitoring the gig economy view this legislative backing as a significant compliance risk for delivery companies but also as an opportunity to strengthen brand reputation by showing proactive collaboration with regulators.

How are Deliveroo, Just Eat and Uber Eats responding to this partnership, and what are their commitments?

Each platform has pledged to expand its security infrastructure to align with the Home Office’s crackdown.

Deliveroo, which has previously positioned itself as a leader in platform security, reiterated its commitment to collaborating with government authorities to combat sophisticated criminal networks targeting delivery platforms. Just Eat said it is investing significant resources to strengthen its anti-fraud systems and close loopholes exploited by organised criminal groups. Uber Eats added that it continues to enhance its detection tools to identify and remove fraudulent accounts, while also reviewing new technologies to stay ahead of those attempting to work illegally.

Industry observers believe that cooperation between platforms and regulators will improve the integrity of gig-economy hiring processes. However, some caution that increased compliance costs may create operational challenges, particularly for smaller or emerging delivery platforms.

The Border Security, Asylum and Immigration Bill will impose legally binding obligations on gig-economy firms, marking a shift from voluntary to mandatory compliance. Businesses failing to comply face penalties of up to £60,000 per illegal worker, director disqualification and potential criminal prosecution.

While this crackdown raises the cost of non-compliance, it also demands significant investment in fraud detection, identity verification, and account security systems. Analysts suggest that larger platforms such as Deliveroo, Just Eat and Uber Eats are better positioned to absorb these costs, whereas smaller players may struggle to adapt.

Economically, stricter enforcement could reduce the supply of delivery riders in the short term, potentially increasing wages for legally employed workers but raising operational costs for platforms.

How does this initiative fit into the broader Plan for Change and the UK’s border security strategy?

The new partnership is part of a wider immigration enforcement strategy aimed at dismantling illegal labour networks and reducing reliance on taxpayer-funded asylum accommodation. The Home Office reported that since the Labour government took office one year ago, 35,000 migrants with no legal right to remain have been deported.

The government has also struck a deal with France to return migrants arriving by small boats, while simultaneously creating a legal migration pathway with strict vetting procedures. This dual-track approach targets smuggling networks while discouraging dangerous Channel crossings.

Enforcement activity remains intense. More than 10,000 illegal working visits have been conducted across multiple sectors over the past year, marking the first time this threshold has been crossed in a 12-month period.

What is the outlook for enforcement and gig-economy compliance through the rest of 2025?

Delivery platforms have 90 days to scale up facial verification and fraud-detection tools as agreed during last month’s ministerial roundtable. Analysts expect the Home Office to increase targeted raids while monitoring whether the partnership reduces illegal working rates.

Future parliamentary debates on the Border Security Bill will determine whether digital ID systems are introduced to further tighten compliance. Institutional investors will closely watch whether these measures impact platform growth, rider supply and delivery efficiency.

Experts argue that success will depend on sustained collaboration, investment in technology and consistent oversight. If implemented effectively, this enforcement model could serve as a blueprint for other gig-economy sectors where fraudulent account sharing remains prevalent.

What do experts believe this Home Office partnership signals for the future of gig-economy compliance and immigration enforcement in the UK?

The Home Office’s partnership with leading delivery firms represents a strategic escalation in the UK’s immigration enforcement playbook. By combining government data with corporate security systems, authorities are closing long-standing loopholes that have enabled informal labour markets to flourish. While the approach places additional compliance costs on gig-economy firms, it also signals a regulatory maturing of the sector. Analysts believe that successful execution could boost consumer trust in food delivery platforms while reshaping the compliance landscape for other self-employed industries.


Discover more from Business-News-Today.com

Subscribe to get the latest posts sent to your email.

Total
0
Shares
Related Posts