CONSTRUCTION union Ucatt warned yesterday that unscrupulous bosses are using so-called umbrella companies to shirk their responsibilities and rob workers’ pension pots of up to £17,000.

The union said that the use of such schemes is undermining the implementation of the government’s auto-enrolment pension scheme and effectively means workers are hit with a contributions “double whammy.” 

Under the umbrella company scheme workers are required to pay both the employers’ and the employees’ pension and national insurance contributions.