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Banning zero-hours contracts could cost businesses up to £3bn a year
Government analysis says banning zero-hours contracts could cost employers up to £3 billion a year, while unions say the reforms would improve security for millions of workers.
- The Government published an impact assessment on Wednesday proposing to ban or limit zero-hours contracts, estimating annual employer costs between £350 million and £2.9 billion.
- Ministers argue reforms will "support growth through improved worker wellbeing and engagement," citing data showing stress and anxiety caused 22.1 million lost working days in 2024/25, equivalent to around £6.5 billion in lost output.
- Zero-Hours contracts remain common in Britain, unlike in Ireland where they are largely banned; the Government estimates worker payments for short-notice shift cuts between £5 million and £1.2 billion.
- Helen Dickinson, chief executive of the British Retail Consortium, called the costs "hugely disproportionate" to employee benefits, while The British Chambers criticized the analysis for being published "so late in the consultation process."
- The Government is currently consulting on whether the ban should apply to anyone working 48 hours a week, though officials expressed a preference for a threshold between eight and 20 hours.
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32 Articles
Evening StandardReposted by 
Nation.Cymru
Nation.CymruMinister defends zero hour contracts ban after warnings of costs to employers
Skills minister Baroness Jacqui Smith defended the Government’s proposed ban on zero hours contracts, after the warning was published on Wednesday.
·London, United Kingdom
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Coverage Details
Total News Sources32
Leaning Left2Leaning Right6Center5Last UpdatedBias Distribution46% Right
Bias Distribution
- 46% of the sources lean Right
46% Right
15%
C 39%
R 46%
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