Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, what recent assessment his Department has made of the impact of umbrella company practices on the (a) rights and (b) take-home pay of contractors; and whether he plans to bring forward legislative proposals to improve (i) transparency, (ii) regulation, and (iii) enforcement in this sector.

In March 2025, this Government published a response to the previous Government’s consultation on tackling non-compliance in the umbrella company market, outlining our approach to regulating the sector. Responses to the call for evidence and consultation gathered data from workers, including contractors.

Through the Employment Rights Bill, we are defining the activities of umbrella companies, and allowing for their subsequent regulation and enforcement through the Fair Work Agency. We will ensure that those who work through umbrella companies receive comparable employment rights to those taken on directly by an employment business. This complements the announcement made at Autumn Budget 2024.