Banks are being handed the names of suspected illegal immigrants by the Home Office and could be told to close down their accounts.

Banks and building societies have started immigration checks on 70 million current accounts under a Government scheme, and could shut accounts down in the hope of pushing those unlawfully staying in the UK out of the country.

Newly appointed Immigration Minister Caroline Nokes said the UK has a transparent stance on immigration: 'This Government is clear: we expect them to leave voluntarily,' she said in The Telegraph.

Newly appointed Minister of State for Immigration, Caroline Nokes, said: 'We must be firm with those who break the rules as illegal immigration impacts the whole of society'

She added that those remaining in the UK illegally were diminishing wages, adding strain to public services and permitting employers to 'undercut' honest businesses.

The plan was introduced by ministers as part of attempts to create a 'hostile environment' for those in the UK unlawfully.

It requires banks and building societies to check the immigration status of all current account holders against details of known illegal migrants held by authorities.

If an illegal migrant is found to be operating an account, this will be flagged to the Home Office.

The new scheme sees banks being told to search their systems for the accounts of suspected illegal immigrants

After checks, officials will instruct the bank or building society on what action to take, which could include shutting the account.

The Government plans to pinpoint 6,000 people staying in the UK unlawfully, with plans for 70 million accounts to be analysed each quarter.

Caroline Nokes said: 'These new measures are part of our commitment to make it more difficult for people with no right to live or work in the UK to remain here.

'This will not affect those who are in the UK legally but we must be firm with those who break the rules as illegal immigration impacts the whole of society.

'Those living and working in the UK illegally can drive down the wages of lawful workers, allow rogue employers to undercut legitimate businesses and put pressure on taxpayer-funded public services.

Chai Patel, legal police director for the Joint Council of the Welfare of Immigrants, worried that those in the UK lawfully could be punished if the Government makes mistakes in the scheme

'By tackling abuse in this way, we can build an immigration system which works in the best interests of the country and prevents vulnerable people from finding themselves at risk of exploitation.'

The Home Office said it was only sharing details of illegal migrants who are liable for deportation from the UK, or who have absconded from immigration control.

Those with outstanding applications or appeals will not be affected - including asylum seekers - nor will those who have been granted leave to be in the UK, including refugees, the department added.

But campaigners criticised the measures.

The plan was introduced by ministers as part of attempts to create a 'hostile environment' for those in the UK unlawfully

Chai Patel, legal policy director of the Joint Council for the Welfare of Immigrants, claimed the Home Office frequently makes mistakes determining immigration status.

He added: 'What is shocking about this system is that people's bank accounts, which they rely on for their jobs, their homes, and every aspect of life, can be closed with no clear means of redress or compensation in case of errors.

'Additionally, this places people affected at even greater risk of exploitation and of being driven into a cash-only economy at the mercy of unscrupulous employers and landlords.'

A spokesman for trade association UK Finance said: 'As a legal requirement implemented by Government, banks and building societies are now required to review the immigration status of all existing customers and have a duty to inform the Home Office when they identify a person without leave to remain in the UK from holding a current account.

'This is an extension to existing rules introduced in 2014 which require banks and building societies to conduct a check on a person's immigration status before opening a current account for them.'