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An MP has claimed the UK is a "slave economy".

Stephen Hepburn, Labour MP for Jarrow, said four million workers in the UK are stuck in low-quality jobs.

They include "bogus self-employment" where firms force workers to pretend to be self-employed so they don't have to give them holiday pay and other benefits.

Others are on zero-hour contracts, which means they have no way of knowing how long they will work, or how much they will earn, from day to day.

And some are agency workers, said Mr Hepburn.

His harsh description of the state of the British economy was dismissed by Work and Pensions Secretary Amber Rudd.

Mr Hepburn told her: "The Minister referred earlier to record levels of employment, but is it not a fact that this is only because the Tories are running a slave economy, with four million people on bogus self-employment, zero-hours contracts and agency work, waiting to know whether they are going to be working from one day to the next?"

Ms Rudd said: "Only under 2.5% are on zero-hours contracts. The facts do not support the hon. Gentleman’s approach. He can have his own views; he cannot have his own facts."

(Image: John Stillwell/PA Wire)

Jobs statistics have been a major bone of contention between the Conservative Government and Labour opposition.

Tories say more people are working than ever before, although in the North East, where 1.2m people are in jobs, the number is slightly down compared to a year ago.

However, Labour says that many low quality jobs have been created.

Nationally, the employment rate is 75.7%, the highest since comparable records began in 1971.

But a recent report by think tank the Resolution Foundation warned: "The past decade has witnessed the expansion and subsequent endurance of a wider range of ‘atypical’, sometimes insecure, work.

"Although full-time work as an employee remains the norm, two-thirds of the growth in employment has been in ‘atypical’ roles such as self-employment, zero-hours contracts or agency work."

The findings were highlighted by Conservative former Prime Minister Sir John Major, when he delivered a speech in Newcastle Cathedral last week.

He said: "The good news is that progress is being made. A record number of people are now in work.

The counterpoint – as the Resolution Foundation has reported – is that over 70% of the new jobs are self-employment, or zero hours contracts, or agency worker contracts. These tend to be low paid without any security of employment."