Re: "while you get none of the benefits of being an employee"
That's why contractors' rates are high - to cover... costs
HMRC & the Government are saying that "inside IR35 contracts" are "disguised employment". This means they are effectively creating a new class of employment which allows the employer to avoid providing employment rights. Whether this is provided with an increased rate of pay to compensate for this is irrelevant: ALL employees are entitled to these rights.
Look at it another way: let's say Asda chose to offer extra pay to their staff in exchange for changing over to "inside IR35 contracts". Many of these workers would "choose" to take the chance on it, not take holidays, hope they don't get ill and ignore the lack of protection against dismissal. This would be very beneficial to Asda, but the employees would be vulnerable. How long before Asda stop taking on employees and only take on "inside IR35 contractors"? How long after that before they drop the pay rates back down?
It makes a complete mockery of the concept of employment rights to allow them to be opted out of. They cease to be rights by doing so, they are purely benefits which an employer can effectively decide not to provide.