Record Increase in Zero-Hours Contracts
The number of workers employed on zero-hours contracts has reached a record high, rising to 1.23 million in December. This increase precedes Labour's planned crackdown on the practice set for next year.
The rise has been driven largely by a surge in 16-to-24-year-olds and workers not engaged in full-time education. Analysis conducted by the Work Foundation at Lancaster University, using data from the Office for National Statistics (ONS), revealed that this figure represents a 91,000 increase compared to the previous year.
The Department for Business and Trade (DBT) stated it "will ensure people can have the security they need by giving eligible workers the right to guaranteed hours."
Understanding Zero-Hours Contracts
Zero-hours contracts allow employers to hire staff without guaranteeing any minimum hours of work. Employees are only offered hours as needed, often at short notice.
Labour's 2024 election manifesto includes a promise to ban "exploitative" zero-hours contracts as one of its initial policies. This commitment is incorporated into the government's Employment Rights Act, which is expected to come into force next year, granting workers the right to guaranteed hours.
Under the Act, workers will also receive what the government defines as "reasonable notice" of their work schedules and compensation for shifts cancelled at short notice.
These measures remain subject to consultation and secondary legislation in the House of Commons.
Urgency for Legislative Action
The Work Foundation emphasized the "urgent need" for the government and Members of Parliament to finalize these measures promptly. Ben Harrison, director of the Work Foundation, noted that employers continue to rely on the "highly precarious" nature of zero-hours contracts despite Labour's plans.
"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," he said.
Statistics indicate that there are 181,000 more people on zero-hours contracts than when Labour assumed power in 2024. Young workers are five times more likely to be on zero-hours contracts, and women constitute more than half (54%) of those employed under such contracts.
Debate Over Zero-Hours Contracts
Critics argue that zero-hours contracts result in unpredictable schedules, no guaranteed income, and difficulties in financial planning for workers.
Supporters contend that these contracts help young people enter the workforce and provide flexibility for those balancing education or childcare responsibilities.
The Work Foundation reported that the proportion of zero-hours contract workers relying on them for full-time work has reached a record 32.8%, with many seeking additional hours or second jobs.
Personal Impact: Anna Jameson's Experience
Anna Jameson, a 22-year-old retail worker from Maltby, South Yorkshire, described how zero-hours contracts have resulted in "constantly fluctuating hours and wages," adding that "you never know what your pay will be at the end of the month."
As a single parent living with her father, stepmother, and brother, she explained, "you want to create security, but when your wages are unpredictable, everything feels uncertain."
She also noted that zero-hours work has made it difficult for her to move into her own rental accommodation, as landlords require stability.
Trade Union Response and Government Commitment
Trade unions have called for the full and prompt implementation of the Employment Rights Act measures.
Paul Nowak, general secretary of the Trades Union Congress (TUC), stated that zero-hours contracts are "trapping workers in insecure jobs with little control over their hours and pay."
"This will make a real difference to working people's living standards," he said.
A spokesperson for the Department for Business and Trade commented,
"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."
