Zero hours clampdown will cost businesses £2.9bn

Government move to restrict the use of zero hours contracts set to cost up to £2.9bn a year in direct costs to business

The plans to limit zero hours contracts are currently out for consultation with no definite decisions on exactly how the government will draft the rules, but initial proposals would abolish effectively the use of this type of employment, except in very limited cases.

The move is part of the sweeping changes to employee rights sets out in the government’s flagship Employment Rights Act 2025. When the consultation was released previous minister for business Peter Kyle said the measure would ‘ensure all jobs provide a baseline level of security and predictability, ending exploitative zero hours contracts’.

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