The health service’s in-house recruitment agency, NHS Professionals, will now be covered by government regulations.

Lobbying by the REC trade body means Employment Agency Act rules now apply to NHS Professionals.

This means NHS Professionals will be subject to investigations by the government’s Employment Agencies Inspectorate if it is suspected of failing to obey the rules.

The REC has argued that allowing public bodies to avoid compliance with the regulations is anti-competitive and disadvantages private agencies.

Now the REC wants the rules to apply to Job centres and Local Education Authorities too.

Managing director Gareth Osborne said: “We will be vigorously pursuing our campaign with the government until trading conditions are genuinely level and fair.”