A select committee has slammed the government for failing to tackle the problem of gangmasters, who were blamed for the Morecambe Bay tragedy that claimed the lives of 21 Chinese gang workers.

The government had failed to adequately research the scale of the problem and its approach to stamping out the problems posed by gangmasters who operated illegally was “muddled”, the influential group of MPs claimed.

And the committee warned that the majority of gangmasters, who control large groups of unskilled workers, were now breaking the law.

“Now it is fair to say the majority are working disreputably and there is a minority of legal operators,” the environment, food and rural affairs select committee report claimed.

“Anecdotal and media reports suggest that there are large numbers of gangmasters operating illegally in this country and that many thousands of people are employed by them,” it added.

A private member’s bill that would require gangmasters to be licensed would not be a “panacea”, the committee said, and there was a lack of political will to tackle the problem, it added.

The committee urged the government to set up a special body to regulate gangmasters.

MP Jim Sheridan’s licensing bill is currently at the report stage in the House of Commons and has cross-party support from 180 MPs.

“I hope we can take my bill forward and put an end to a system that allows rogues to thrive,” he said.