Crackdown on rogue employers

Business and Enterprise Secretary John Hutton will tell the TUC conference that the maximum fine for employers who do not pay the statutory minimum rate will be increased.

He will also announce an increase in spending on enforcing the minimum wage and the doubling of the number of inspectors who check for abuses against workers employed by agencies.

He will give inspectors tough new powers including unlimited penalties if they find abuses.

He will call for a new partnership between the Government and trade unions to help "shine a light into the dark corners" of the labour market and rid Britain of unwanted employment practices.

He will announce a £3m fund for unions to help vulnerable workers.

Mr Hutton will stress how important temporary jobs can be in helping the long-term unemployed back to work and will say he wants to dispel the myth that agency workers are automatically victims of abuse and exploitation.

He will say: "The TUC's own research found a significant number of temps actively choose agency work in preference to a permanent job.

"Agency working has always played a crucial role in the labour market, allowing people to get their foot in the door and a route into a permanent job."

Mr Hutton will tell the TUC that he will make a renewed push in the coming months to reach "a fair and lasting solution" to demands by unions for better rights for agency workers.