In the UK, many temporary employees are being forced to work through "umbrella companies" that take a cut of their pay. And they are forced to pay the employer's share of social security.

These "umbrella companies" are bad for workers. They serve only the ultimate employers, that can pay less for work, and the owners of the umbrella companies themselves. Therefore, they should be abolished entirely.

It is a fundamental mistake to charge any welfare benefits as a tax on employment. That creates an incentive for companies to employ fewer people. Businesses should pay for these programs through a tax that is not based on number of employees.