Critics argued the proposals could lead to racial discrimination and hurt immigrants in the U.K. legally.
For instance, private landlords will face fines for not carrying out the proper checks under the new legislation.
But "checking immigration status is complicated so landlords may shy away from letting to anyone who they believe not to be British," said Gavin Smart, director of policy and practice at the Chartered Institute of Housing. "Discrimination laws will not protect these people."
New measures to check the immigration status of those applying for driver's licenses will be introduced and temporary migrants, including students from abroad, will be required to contribute to the National Health Service.
The government says the latter move will cut down on "health tourism," but charity Doctors of the World said there is no credible evidence of "rampant health tourism" in the U.K.
"Migrants don't come here to see a dentist. They come to work and provide for their families, or to seek protection from persecution," the charity said.
The bill also will require banks to check the status of prospective account holders and cut the number of grounds for appealing a deportation order from 17 to four an effort to prevent deportation sagas akin to the 12-year battle to deport radical cleric Abu Qatada to Jordan.
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