Ministers urged to press ahead with UK ban on zero-hours contracts
Campaigners are urging ministers to keep a ban on zero-hours contracts, arguing insecure hours deepen poverty, while businesses warn it could cut hiring.
Intelligence analysis by GPT-5.4 Mini
The Guardian reports a renewed push from campaigners and unions for the government to press ahead with tighter rules on zero-hours contracts, despite business warnings that the changes could reduce flexibility and hiring. The row lands as ministers delay consultation on the planned reforms and face pressure to show the Employment Rights Act will still support jobs.
Some workers do not know how many hours they will get each week. That can make money feel shaky, like trying to build a tower on a wobbly table.
Campaigners want rules that give workers steadier hours, so they can plan for rent, food and childcare. They say this would help families and reduce poverty.
Businesses worry the rules could make hiring harder. They say employers may be less willing to offer work if they must promise hours for the long term.
Analysis
What is happening
Campaigners are pressing the UK government to move ahead with a ban on zero-hours contracts, arguing that workers need more predictable hours and income. The call comes from the Child Poverty Action Group, the TUC and other signatories to a letter sent to the business and trade department.
The political and business fight
The dispute sits inside the wider rollout of the Employment Rights Act, which became law last year but left many details to be filled in later. According to the article, the consultation on zero-hours contracts was supposed to start in January but has been delayed under business secretary Peter Kyle. The department is now expected to seek submissions before the end of the summer, with new rules potentially arriving next year.
Business groups are arguing the opposite. The British Retail Consortium and UKHospitality say tighter rules could reduce flexibility and lead to fewer jobs. The Institute of Directors is also cited as saying 86% of business leaders think the Employment Rights Act will hurt economic growth, up from 72% last year.
Why campaigners want the ban
Supporters of the change say the current system leaves workers unable to plan budgets, care for children, or qualify for mortgages and cheap credit because their hours can be cut to zero. TUC general secretary Paul Nowak said many workers do not know what they will earn each week, and said insecurity can make it harder to challenge bad behaviour at work.
Alison Garnham of the Child Poverty Action Group argues that secure hours and proper notice of shifts would help working parents and could be a useful tool against child poverty. The letter also says the right to a regular-hours contract would not affect holiday jobs, because it would be based on a reference period over several months.
The article places the government under competing pressure: campaigners want stronger worker protections, while employers want flexibility and time to adapt before the rules change.
Key points
- Campaigners want ministers to keep moving on a ban or tighter rules for zero-hours contracts.
- The government has delayed the consultation that was expected to begin in January.
- Business groups warn the changes could reduce flexibility and slow hiring.
- Supporters say secure hours would help workers budget, care for children and access credit.
- More than a million people in the UK are said to work on zero-hours contracts.
