A growing number of agencies are paying workers less than the minimum wage through inflated costs, according to a new report published today.

The Trades Union Congress (TUC) has revealed that regulations to protect agency workers from exploitation by unscrupulous agencies are doing little to prevent abuse of workers, particularly migrants.

The TUC believes that deductions for cashing pay cheques, transport, providing clothing and safety equipment and meal charges regularly means that workers receive well below the legal minimum of £4.85 an hour.

TUC general secretary Brendan Barber said: “The current regulations which are designed to protect agency workers from abuse at the hands of rogue agencies are clearly doing nothing of the sort.

“Agency workers deserve a better deal than many of them are getting at the moment.”