Labour MPs’ campaign forces Government rethink on umbrella companies

December 4, 2014

141126 Umbrella Company Rally smallA campaign by Labour MPs and trade unions against exploitative employment loopholes has been successful in forcing the Government to rethink its policy.

Speaking in his Autumn Statement, the Chancellor George Osborne said that the Government would be holding a consultation on the issue of umbrella payroll companies, which are currently used by some employers to avoid tax and to force staff onto a lower wage. Some staff in the construction sector have seen their take-home pay fall by as much as a quarter.

Emma has been one of the leading Labour MPs speaking out in protest against these companies. As well as raising the issue with Treasury ministers and calling for a debate in Parliament, Emma recently spoke at a Parliamentary lobby of construction workers organised by the construction union UCATT.

Earlier this year UCATT published a report, The Umbrella Company Con-Trick, explaining how thousands of workers had been shifted onto umbrella contracts after a previous employment loophole was closed.

Now that the Government has finally taken notice of the issue, Emma wants to keep up the pressure so that the loophole is closed quickly and workers can get a fair deal.

Emma said:

“I’m pleased that the work Labour MPs and campaigners like UCATT have been doing has paid off. The Government has been aware of these schemes for years, but now they can’t ignore them any longer.

“Now we need to make sure that we get more than just a consultation, and that this loophole is closed quickly. People are losing hundreds of pounds a month, so we need to keep up the pressure so that this problem is fixed without delay.”

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