The watchdog, which is yet to be given a name, will be a “one-stop shop” to enforce minimum wage laws, protect agency workers and eradicate modern slavery.

The new regulator will involve amalgamating three former bodies – the Gangmasters and Labour Abuse Authority, the Employment Agency Standards Inspectorate and the National Minimum Wage enforcement team based at HM Revenue and Customs.

Any factories seen to be flouting minimum wage laws will have their products banned from sale, the BEIS threatened.