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Government to probe Labour's insurance mis-selling claims Government to probe Labour's insurance mis-selling claims
(35 minutes later)
The government is to investigate claims that some of Britain's top employment agencies have been mis-selling insurance to thousands of workers.The government is to investigate claims that some of Britain's top employment agencies have been mis-selling insurance to thousands of workers.
The move follows claims in the Commons that top employment agencies have been needlessly selling personal accident insurance to low-paid workers.The move follows claims in the Commons that top employment agencies have been needlessly selling personal accident insurance to low-paid workers.
The Shadow Business Secretary Chuka Umunna accused the agencies of "profiteering" out of the practice. The shadow business secretary Chuka Umunna accused the agencies of "profiteering" out of the practice.
He said more than hundred thousand workers had been mis-sold the policies. He said the companies concerned employ over 100,000 workers.
Mr Umunna named six agencies - Blue Arrow, Acorn, Taskmaster, Randstad, Meridian and Staffline - as being involved in the practice.Mr Umunna named six agencies - Blue Arrow, Acorn, Taskmaster, Randstad, Meridian and Staffline - as being involved in the practice.
He said the insurance was often sold to workers on the Minimum Wage. He said the insurance was often sold to workers on the Minimum Wage. He said that the personal accident policies were often not needed as workers were already covered by their employers.
Many of those involved are on temporary contracts. "There is even a company - G7 Group - which specialises in putting together these dubious arrangements for agencies," Mr Umunna said in the Commons.
The business secretary Vince Cable said he would investigate, and also consider a more broad-based enquiry. The business secretary Vince Cable said if the practice had been happening, "it would be indefensible, and I think it is unlawful".
"I will commit to ensuring that we have a proper enforcement procedure," said Dr Cable.
He added that the companies would be investigated, and that he would also consider a more broad-based enquiry.
Kevin Green, chief executive of the Recruitment and Employment Confederation, the organisation that represents the industry, has previously defended his members.Kevin Green, chief executive of the Recruitment and Employment Confederation, the organisation that represents the industry, has previously defended his members.
He told the BBC last year that companies were "not selling insurance, they are giving people the opportunity to take insurance up".He told the BBC last year that companies were "not selling insurance, they are giving people the opportunity to take insurance up".
"They are explicitly clear that they don't sell this activity," he insisted."They are explicitly clear that they don't sell this activity," he insisted.