The average assignment rate for UK umbrella employees has risen over the last two years with 73% of umbrella workers earning £15 per hour or more, compared to 53% earning the same rate in 2015, according to research from the Freelancer & Contractor Services Association.

The research, which compares umbrella working in 2015 with 2017, also showed that the average length of an assignment has also doubled in the last two years, with umbrella employees working 29 weeks per assignment, compared to 14 weeks in 2015. The average length of umbrella employment has increased by over 50% since February 2015, with contractors staying with their chosen umbrella for 46 weeks on average, compared to 30 weeks in 2015.

The FCSA claims that umbrella working is being adopted by more and more high-end professionals in a diverse range of occupations. The research showed there has been an increase in umbrella workers within health and social care which now has 17% of all umbrella employees, compared to 6% in 2015. However, 7% of the UK’s umbrella employees are within the construction sector, which is a decrease compared to two years ago when the figure was 21%.

“Our evidence shows that the umbrella marketplace has matured a lot over the past two years,” Julia Kermode, chief executive of the FCSA, said. “Umbrella employees are enjoying a better and higher rate of pay, longer assignments and are showing more loyalty to their chosen umbrella employer.  All of this indicates that the market has developed in the last few years and offers stability to those who choose it.”

“We were pleased to hear Matthew Taylor recognising the importance of umbrella firms as a valuable part of the supply chain in his recent review of modern working practices,” Kermode said. “The umbrella sector collects approximately £3 billion for the Exchequer annually and the review panel clearly appreciates the important contribution it makes to the UK economy.”