Most contracts pay over the odds hourly but get no sick pay, holiday, training etc.
You need a limited or unbrella company to get paid, have a look at JSA (wankers) or Libert Bishop (Gods) websites which'll explain it a lot more.
Then there's good old IR35 which can proper screw you up tax-dodging wise.
If it's contract to perm you'll probably only do three months contract and then get offered the job to perm.