Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if he will take steps to prevent employers from taking Apprenticeship Levy contributions from agency workers' pay.

Some agencies may show the fees they receive from end clients for supplying a worker, and the deductions made from these fees, on the workers’ payslips. As this appears alongside a worker’s usual Income Tax and employee NICs deductions, it can incorrectly give the impression that the agency’s costs have been deducted from the worker’s wages as well as their own tax and employee NICs.

In April 2020, the government introduced Key Information Documents for agency workers to set out details about their engagements, including rates of pay. This allows workers to see how deductions and fees are made through the labour supply chain and how this affects their gross pay and net pay, as well as details of holiday pay and other benefits.