Officials found migrant workers living in run-down and cramped houses, including three adults, two children and a baby in one room, it was disclosed today.

The workers were employed by a gangmaster who supplied staff to firms including British Bakeries, which produces a third of the UK's bread.

The Gangmasters Licensing Authority (GLA) announced today that the gangmaster involved has had his licence revoked.

The authority said he had forced migrants to live in cramped conditions, while paying over the odds, as a condition of finding them work.

Money was withheld from workers, they were paid less than the minimum wage after deductions were made for accommodation and they were charged for the protective equipment they needed to work.

The three adults, two children and a baby were living in a room measuring 2.8 by 3.8 metres which had double and a single mattress and a baby seat.

The gangmaster, Robert Taylor, was based in Burton-on-Trent and supplied staff to work across the Midlands.

Paul Whitehouse, chairman of the GLA said: "I'm determined to take action to stop the worker abuse that has infested the flexible labour market. Any group of workers who are dependent on consumer demand for a weekly job should at least expect to receive the minimum wage and the protection of UK law.

"The GLA is cracking down on illegal work practices to protect workers from the abuse of rogue gangmasters.

"Yet again we see that the food on our plates on dinner tables across the UK could be there at the expense of exploited workers."

The GLA has now taken licences away from 49 gangmasters.