(qlmbusinessnews.com . Fri 27th Feb, 2026) London, UK —
Labour Vows to Tackle Soaring Zero-Hours Contracts with New Legislation
The Record Surge in Zero-Hours Contracts as Labour Vows Clampdown
In an unprecedented rise, the number of individuals employed under zero-hours contracts in the UK has reached a new peak, with figures swelling to 1.23 million by December, just before Labour's proposed stringent regulations on such contracts are set to be introduced next year.
This significant uptick, particularly noted among 16-to-24-year-olds and those outside of full-time education, marks a 91,000 increase from the previous year, according to an analysis conducted by the Work Foundation at Lancaster University utilising data from the Office for National Statistics (ONS).
In response, the Department for Business and Trade (DBT) has pledged to enhance job security by “giving eligible workers the right to guaranteed hours”, aiming to combat the instability associated with zero-hours contracts. These contracts, known for offering work without any assured hours, have been a double-edged sword; while they offer flexibility, they also subject workers to unpredictable work schedules and financial instability.
Labour has been vocal about its intentions to eradicate what it terms “exploitative” zero-hours contracts, featuring a ban as a cornerstone of its 2024 election manifesto. This is in line with the upcoming Employment Rights Act, which promises to enshrine the right to guaranteed hours among other protections such as “reasonable notice” for shifts and compensation for last-minute cancellations.
However, the Work Foundation emphasises the “urgent need” for the government and Members of Parliament to hasten the enactment of these measures, indicating that employers continue to lean heavily on these precarious contracts despite looming crackdowns.
Ben Harrison of the Work Foundation highlighted the ongoing reliance on “highly precarious” arrangements, which offer “one-sided flexibility”, leaving workers in the lurch regarding their financial and work schedules.
Despite Labour's promise of reform, the number of zero-hours contracts has seen an increase of 181,000 since their ascendancy in 2024, with young workers disproportionately affected. The foundation also noted a surge in individuals fully dependent on these contracts, seeking additional work to make ends meet.
The plight of workers like Anna Jameson, a single parent from Maltby, South Yorkshire, showcases the daily uncertainties faced, from fluctuating hours and wages to the challenge of securing stable accommodation due to the variability of her income.
Trade unions have thrown their weight behind the call for the swift implementation of the Employment Rights Act, with TUC General Secretary Paul Nowak criticising zero-hours contracts for undermining job security and appealing for immediate action to improve workers' living standards.
A spokesperson for the DBT stressed the importance of addressing insecure work to enhance income, living standards, and productivity, signalling a commitment to collaborate with both workers and employers in the roll-out of these measures.
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