A record 1.23 million workers are now on zero-hours contracts, new analysis has revealed, coming ahead of Labour’s plan to bolster the rights of these employees.
The figure has risen by 91,000 over the past year, research by the Work Foundation at Lancaster University found, driven mostly by young workers aged 16 to 24.
Also known as casual contracts, a zero-hours contract is an arrangement in which the employer does not need to guarantee a worker a minimum number of hours. These workers do not have to accept shifts and can take on other employment. They are most commonly used in the hospitality sector.
Labour has legislated to tackle “exploitative” zero-hours contracts as part of its flagship Employment Rights Bill. The changes taking effect in 2027 will see workers given a right to guaranteed hours if they regularly work over their contracted number, more reasonable notice of shifts, and compensation for cancelled or changed shifts.
In certain cases, these contracts can help support young people into their first jobs and offer flexibility for those who need it. However, critics point out that they are often used unsuitably, leaving workers facing unpredictable schedules, a lack of guaranteed income, and no ability to plan financially.
The bill will also make parental leave and sick pay available from day one of a job, and enforce protection from unfair dismissal from six months, instead of two years. Controversial “fire and rehire” practices will also be outlawed as part of the legislation, while trade union rights have been strengthened.
Commenting on the Work Foundation’s findings, TUC general secretary Paul Nowak said: “Change can’t come soon enough for workers across the country.
“These new figures show zero-hours contracts are still plaguing the labour market – trapping workers in insecure jobs with little control over their hours and pay.
“That’s why the Employment Rights Act, which is set to ban exploitative zero-hours contracts, is so important. These new rights must be implemented in full and as soon as possible.”
The findings also reveal that the number of workers on zero-hours contracts has increased by 181,000 since Labour came into power in 2024. The Work Foundation said the rise reinforces the need for the new rights to be delivered.
Ben Harrison, director of the Work Foundation at Lancaster University, said: “This new data indicates that some employers continue to rely on highly precarious forms of employment such as zero-hour contracts, despite the government’s commitment to kerb their use. 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.
“Now the Employment Rights Act has passed, it is imperative that legislators prioritise finalising the new regulations that will provide workers with a new right to guarantee hours. Our previous research indicates that nine in 10 zero-hour contract workers in 2023 would have qualified to be offered guaranteed hours under the government’s original proposal of a 12-week reference period. This would represent an important step towards providing more security and certainty for workers currently on these kinds of insecure contracts.”
A government spokesperson said: “Tackling insecure work is vital if we are to boost incomes, raise living standards and increase productivity.
“Our Employment Rights Act will ensure people can have the security they need by giving eligible workers the right to guaranteed hours, and we will work closely with workers and employers alike on how the measures are implemented.”
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