Large recruitment firms will have to pay £4,000 to get a licence to supply workers in agriculture or food processing and packaging, the government has announced.

The Gangmasters Licensing Act will require recruiters with a turnover of £10m to pay the highest licence fee.

Those with a turnover of less than £1m face a £250 fee.

From October, recruiters could get a 10-year prison sentence and a £5,000 fine for supplying workers without a gangmasters licence.

Department for Environment, Food and Rural Affairs Minister Jim Knight, said: “We consulted with the industry, employers and unions to come up with what we are certain is the best solution.

“Of course, many gangmasters run safe and legitimate businesses but it’s imperative that we do everything to weed out the rogues among them.”