Migrant visa crackdown amid fears wages are being undercut by firms

The number of companies banned from hiring migrants over fears they are undercutting wages has doubled over the past year.

Home Office figures show 1,948 sponsors for skilled and temporary workers had their licences cancelled in the year to June 2025, compared to 937 in the previous 12-month-period.

The Government is seeking to crack down on rogue employers underpaying and exploiting migrant staff - who are reliant on their visa sponsor to stay in the country - while undercutting British workers.

Adult social care, hospitality, retail and construction are among the sectors seeing the highest levels of abuse, according to the Home Office.

Licences for companies have been ended for breaking rules including underpaying workers, failing to give them promised work and assisting people to the country to get around immigration rules.

Migration minister Mike Tapp said: "Those who abuse our immigration system must face the strongest possible consequences.

"We will not hesitate to ban companies from sponsoring workers from overseas where this is being done to undercut British workers and exploit vulnerable staff.

"My message to unscrupulous employers is clear: these shameful practices will not be tolerated."

The move comes as a parliamentary committee warned earlier this year that the Government's work to tackle exploitation of migrant workers had been "inefficient".

The Public Accounts Committee said in July the Government has failed to gather "basic information" including whether those on skilled worker visas have been victims of modern slavery, and whether people leave the UK after their visas expire.

The Home Office said it is committed "to fix the broken immigration system".

Home Secretary Shabana Mahmood announced on Monday that the UK could suspend visas for countries that do not agree to returns deals for migrants, as part of efforts to crack down on Channel crossings.

Shadow home secretary Chris Philp described the plans as "more tinkering around the edges from a Labour Government who are not serious about bringing down immigration".

He said: "Immigration remains sky-high, asylum grants are at record levels, and sectors from care to construction are hooked on imported labour because Labour refuse to train British workers or reform welfare to get people into jobs."