Firms who are found to have repeatedly employed illegal migrants could face fines of up to £60,000 per breach.

The Home Office argues “illegal working and renting are significant pull factors” for illegal migration.

Immigration Minister Robert Jenrick said the move would help deter perilous channel crossings by small boats.

Under the new punishments, which come into force at the beginning of 2024, businesses will see the civil penalty for employing illegal migrants rise from £15,000 for the first offence to £45,000.

Repeat offenders will see fines triple from £20,000 to £60,000.

Meanwhile, landlords will have fines hiked from £80 per lodger and £1,000 per occupier for a first breach to up to £5,000 per lodger and £10,000 per occupier.

Further breaches could result in penalties of to £10,000 per lodger and £20,000 per occupier, up from £500 and £3,000 respectively.

“Unscrupulous landlords and employers who allow illegal working and renting enable the business model of the evil people smugglers to continue,” Mr Jenrick said in a statement.

“There is no excuse for not conducting the appropriate checks and those in breach will now face significantly tougher penalties.”

It is unknown how many people reside in the UK illegally. A 2020 study conducted by the Greater London Authority estimated that between 594,000-745,000, undocumented people were living in the country – about 1% of the total population.

Since 2018 some 4,000 civil penalties have been issued to employers for employing undocumented workers, raising more than £74m.