Locum Workers: Changes to Umbrella Providers

Some of you may have been contacted by your consultant regarding umbrella providers. Recently, Local Authorities re-awarded some of their vendor contracts as part of the MSTAR3 Framework, which tells Councils how to recruit temp staff. As part of these new contracts, it is now up to us (as your recruiter) to ensure that every candidate uses an FCSA, Professional Passport, or APSCO accredited umbrella provider.


Local Authorities are trying to ensure that all temporary agency staff are working with umbrella companies that are making the right statutory deductions (for Tax and National Insurance), this is to avoid future enforcement sanctions by the HMRC. Unfortunately, as this is now a mandatory requirement, we don’t have a great amount of discretion when it comes to which companies are accredited or not.


At the moment, we are trying to encourage our candidates to use accredited providers, while simultaneously working with vendors and end clients to minimise the impact to supply and to people’s personal finances. We realise that this may be frustrating for you and that you may not wish to change your umbrella company. If that is the case, I would suggest that you speak to your consultant in the first instance. Alternatively, for further advice or to discuss your personal circumstances, please contact our Commercial Director Chris Griffin on: [email protected].

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