What's happened
Recent reports reveal that about 8.8% of UK adults work off the books, mainly in low-paid, informal jobs to make ends meet. Politicians focus on migrant workers, but research shows the issue is broader, driven by economic hardship and customer demand. The government claims to be tackling the problem, but evidence suggests otherwise.
What's behind the headline?
The narrative around the UK’s hidden economy is often misleading. Politicians emphasize migrant workers as the primary culprits, but data shows that most undeclared work is carried out by young, low-income residents in deprived areas. This suggests that the core issue is economic survival, not immigration. The stories of workers like Dennis, an electrician, highlight how informal work is a necessity for many in their early careers. Meanwhile, customer pressure—such as requests to 'close the VAT' or lower prices—fuels the underground economy. The government’s claims of enforcement surges are contradicted by research indicating persistent, widespread informal work. This disconnect points to a deeper structural problem: the high cost of living and inadequate wages are driving millions into the shadow economy, which politicians are unlikely to address effectively without broader economic reforms. The focus on migrant workers serves political agendas more than it addresses the root causes, risking misallocation of resources and public misunderstanding of the real economic pressures faced by ordinary people.
What the papers say
The Guardian reports that the UK’s hidden economy involves approximately 4.4 million workers, mostly in low-paid, informal roles driven by economic necessity, not migrant status. It emphasizes that the problem is widespread across regions and age groups, contradicting political narratives that focus on migrant workers as the main issue. Reuters highlights ongoing disputes within the UK Border Force, with union concerns over pay and roles, and the government’s efforts to maintain border security amid migrant-related tensions. The Mirror features a confrontation on a TV program where economist Faiza Shaheen defends migrants, arguing they seek similar life goals as UK residents, while political commentator Matt Goodwin criticizes immigration policies, claiming they incentivize illegal entry and law-breaking. The contrasting perspectives reveal a complex debate: official efforts focus on border security and migration control, while research underscores economic hardship as the primary driver of informal work, regardless of migrant status.
How we got here
The UK’s hidden economy has been a concern for years, with official estimates indicating around 4.4 million people working undeclared jobs. This issue is linked to economic pressures, especially in deprived areas, where workers often moonlight to supplement low incomes. Politicians have historically framed the problem as linked to migrant workers, but recent research shows the majority of undeclared work involves native residents in low-income sectors, driven by the high cost of living and customer demand for cheaper services.
Go deeper
Common question
-
How Many People Work Off the Books in the UK?
Many people wonder about the scale of illegal or undeclared work in the UK. Recent reports suggest that millions of adults are working off the books, often in low-paid, informal jobs. But why do so many choose or feel forced to work this way? In this page, we explore the extent of the UK's hidden economy, the types of jobs involved, and what the government is doing about it.
More on these topics