Contractors hiring workers will be legally required to carry out checks confirming that anyone working in their name is eligible to work in the UK, bringing them in line with present checks needed for employees.

Until now, only individuals classed as employees have been subject to statutory right to work checks. But ministers say widespread use of self-employment and casual contracts has created loopholes allowing illegal working to thrive.

Businesses failing to carry out checks face hefty penalties already in place for those hiring illegal workers in traditional employment roles.

This includes fines of up to £60,000 per worker, business closures, director bans and prison sentences of up to 5 years.

Alex Norris, the former building safety minister who was appointed minister for border security and asylum last month, said the changes are aimed at “rogue employers” who exploit labour rules to undercut legitimate firms.

“This safeguard will also ensure that businesses acting lawfully will not be undercut on labour costs by those who exploit the system.”

The Home Office said the six week consultation , consultation, which runs until 10 December, would give contractors the opportunity to help shape guidance and statutory codes of practice covering how the extended checks will operate and be enforced.

Longer-term, ministers plan to roll out digital ID cards to make proof of right-to-work faster and harder to falsify.