Number of zero-hours contracts hits record high ahead of crackdown

Number of zero-hours contracts hits record high ahead of crackdown

The number of individuals employed under zero-hours contracts has reached an unprecedented peak, just before Labour’s proposed restrictions on the practice are set to take effect next year. This rise has largely been driven by an increase in the number of young workers aged 16 to 24 and others who are not engaged in full-time education, pushing the total to 1.23 million by December.

Research conducted by the Work Foundation at Lancaster University, which drew on data from the Office for National Statistics (ONS), revealed that this figure marks a growth of 91,000 compared to the previous year. The Department for Business and Trade (DBT) stated its commitment to ensuring workers have the stability they need by granting eligible employees the right to guaranteed hours.

Zero-hours contracts allow employers to hire staff without guaranteeing a minimum amount of work, often providing shifts at short notice based on demand. Labour’s 2024 election manifesto declared a ban on what it described as “exploitative” zero-hours agreements, intending this to be one of its early policies after gaining power. This policy is embedded in the government’s Employment Rights Act and expected to be implemented next year, introducing a right for workers to receive guaranteed hours. The Act will also establish provisions for workers to receive reasonable notice of their scheduled shifts and compensation for cancellations made with insufficient warning.

Despite these upcoming changes, the Work Foundation emphasized the urgent need for the government and lawmakers to finalize the reforms swiftly. Ben Harrison, the foundation’s director, pointed out that employers continue to depend on these highly precarious contracts. He warned, “Such arrangements underpin the kind of ‘one-sided flexibility’ that leaves over a million workers unsure how many hours they will work or how much money they will earn next week.” The analysis showed that since Labour assumed power in 2024, the number of people on zero-hours contracts has risen by 181,000. The data also indicated that young workers are five times more likely to have these contracts, and women constitute 54% of those employed under such conditions.

Critics often argue that zero-hours contracts create unstable work schedules, lack guaranteed income, and make it difficult for employees to plan their finances. On the other hand, supporters claim these contracts support young people entering the workforce and provide flexibility for those balancing education or childcare commitments. The Work Foundation’s analysis found that a record 32.8% of zero-hours workers rely on these contracts for full-time work, with many seeking extra hours or additional jobs.

Anna Jameson, a 22-year-old retail employee from Maltby, South Yorkshire, described how zero-hours contracts have caused her hours and wages to constantly fluctuate. She explained, “you never know what your pay will be at the end of the month.” As a single parent living with her extended family, she highlighted the challenge of securing stable income, which in turn affects her ability to move into her own rental accommodation due to landlords’ demands for financial stability.

Trade unions have voiced strong support for the Employment Rights Act measures to be fully and swiftly implemented. Paul Nowak, general secretary of the Trades Union Congress (TUC), criticized zero-hours contracts for “trapping workers in insecure jobs with little control over their hours and pay,” adding, “This will make a real difference to working people’s living standards.” A spokesperson from the DBT reiterated the government’s focus on tackling insecure work, saying, “Tackling insecure work is vital if we are to boost incomes, raise living standards and increase productivity. We will work closely with workers and employers alike on how the measures are implemented.”

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