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Labour鈥檚 proposed 拢2.5bn funding boost for the NHS will in part be paid for by a crackdown on 鈥渦mbrella鈥� schemes used by construction firms to employ temporary workers.

Yesterday Ed Miliband, the Labour leader, made the funding pledge for the NHS the centrepiece of his party conference speech.

He said the 拢2.5bn funding boost would be paid for through 拢1.2bn from a new 鈥渕ansion tax鈥� on homes worth over 拢2m, as well as a 拢150m levy on tobacco companies and a 鈥渃o-ordinated crackdown against tax avoidance鈥�, which he said would raise 拢1.1bn.

Labour said the tax avoidance crackdown would include tackling an employment scam involving 鈥渦mbrella鈥� schemes used to employ temporary workers.

Umbrella companies make PAYE and National Insurance deductions for workers and allow them to offset travel and subsistence expenses against their tax bill, but unions have said the schemes have driven down workers鈥� wages.

The use of such 鈥渦mbrella鈥� schemes has become more widespread in the construction industry since the government launched a crackdown on so-called bogus self employment earlier in April, with reports emerging of thousands of site workers being shifted into being paid via umbrella companies as contractors try to avoid taking on workers directly.

Unions are opposed to the use of the schemes and have organised a series of protests against them in recent months.

In July construction union Ucatt warned the schemes were becoming 鈥渆ndemic鈥� across the industry and called on the government to stamp them out.

Steve Murphy, Ucatt general secretary said: 鈥淭he umbrella tax scam is a direct attack on workers鈥� pay and skills. Highly skilled workers are only being paid the minimum wage.

鈥淎gencies and contractors are forcing the workers to pay the NI contributions they should be paying. The government needs to take immediate action and end this scam.鈥�