The number of people relying on zero hours contracts as their main job has reached a record 1.23 million, according to analysis by the Work Foundation using data from the Office for National Statistics.
That represents an annual increase of 91,000 workers, with the sharpest growth among 16 to 24 year olds. Since July 2024, numbers have risen by 181,000.
Who is most affected?
Key findings from the research include:
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77% of zero hours workers, around 943,000 people, are not in full time education
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Workers aged 16 to 24 are 5.1 times more likely to be on zero hours contracts than those over 25
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Women are disproportionately represented in insecure work
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Around one third rely on zero hours arrangements as their primary full time income
Many workers report wanting more guaranteed hours or additional employment.
Legal change is coming
The Employment Rights Act 2025 includes measures designed to curb what the Government describes as exploitative zero hours contracts. These reforms are expected to take effect from 2027.
Proposals include:
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A right to guaranteed hours, likely based on a reference period
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Advance notice of shifts
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Compensation where shifts are cancelled or moved at short notice
A formal consultation on implementation is expected shortly.
Previous analysis suggests that under an earlier proposal using a 12 week reference period, up to 90% of current zero hours workers would have qualified for guaranteed hours.
What this means in practice
For employers, zero hours contracts have traditionally offered flexibility in sectors with fluctuating demand. However, the direction of travel is clear, greater predictability and protection for workers.
The upcoming consultation will determine:
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How guaranteed hours are calculated
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How quickly rights will arise
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What constitutes reasonable notice
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The level of financial compensation for late cancellations
Steps employers may wish to consider now
- Audit your use of zero hours contracts and identify where individuals are working regular patterns.
- Review workforce planning models that rely heavily on last minute scheduling.
- Assess whether some roles could transition to minimum hours or annualised hours arrangements.
- Prepare managers for tighter compliance around shift notification and cancellations.
The reforms will not eliminate flexibility, but they are likely to rebalance it. Employers that proactively review their approach now will be better positioned when the final regulations are confirmed.
Supportis can support you in preparing for the upcoming zero hours reforms by reviewing your contracts and working arrangements, assessing where guaranteed hours may apply, updating shift scheduling processes, training managers on the new legal requirements, and providing practical, commercially focused advice to help you retain flexibility while remaining compliant.
Call us on 0161 603 2156 or email [email protected].
